As Air India Sale Process Gathers Momentum, Consortium Of Jet Airways, Air France-KLM, Delta Airlines Shows Interest In Picking Up Stakes

A consortium of Jet Airways, Air France-KLM and Delta Airlines has expressed interest in picking up stakes in Air India as the government’s plan to privatise the national carrier gathered further momentum, Mint has reported.

Pressing ahead with the strategic disinvestment of loss-making Air India, the government is expected to soon invite Expression of Interest (EoI) from the bidders.

Naresh Goyal-led Jet Airline has recently enhanced cooperation agreement with the Air France-KLM Group.

Late last week, Union Minister of State for Civil Aviation Jayant Sinha had clarified that government was well on track to complete the stake sale process in Air India by the end of this calendar year.

"Our timelines are very clear and our goal is to award it (Air India) by the end of June and to have the whole transaction closed and done and transfer of airline to the private sector by the end of this calendar year. Those are the DIPAM (Department of Investment and Public Asset Management) timelines," the minister said when asked if the privatisation of Air India was possible this year owing to the ongoing delay in issuance of expression of interest (EoI).

The government has decided to break up Air India into four distinct entities – the airline, subsidiary Air India Express and ground handling JV AI-Sats. The engineering subsidiary, the ground handling subsidiary and domestic regional arm Alliance Air are the other three parts.

The sale process is expected to be completed by the end of calendar year 2018. Air India has Rs 50,000 crore debt on its books and almost an equal amount in accumulated losses. However, it owns assets in the form of aircraft, land parcels, bilateral traffic rights and lucrative slots at various airports around the world.