The government unveiles its long-awaited plans to divest Air India on Wednesday.
It proposes to sell 76 per cent of Air India along with low-fare subsidiary Air India Express and a 50 per cent stake in AISATS, a groundhandling joint venture with Singapore Airport Terminal Services (SATS), as a single entity along with most of the national carrier’s debt and prefers an open bidding route for the sale.
The government has also decided to retain a 24 per cent stake in this entity after the divestment, it said in the expression of interest (EoI) document released on Wednesday. Air India’s new owner will take on debt of Rs 33,392 crore, which could make it less attractive for potential bidders.
The government, which has issued advertisements for Expression of Interest (EOI) today, has said that the companies or consortium bidding for the national carrier will have to have a net worth of INR 5,000 crore.