The Strategist

Indian goverment to sell 100% of Air India

01/27/2020 - 10:38

Indian authorities approved sale of 100% of the shares of the national air carrier Air India, whose total debt obligations are estimated at $ 8.45 billion.

Mark Harkin via flickr
Mark Harkin via flickr
The "Government of India gave "principal" approval for the strategic termination of Air India's investment by transferring management control and the sale of 100% of the share capital of Air India, owned by the Government of India, which will include a 100% stake in Air India in AIXL (Air India Express Limited) and 50% in AISATS (Air India SATS Airport Services Private Limited)," reads a document published by the Department of Investment and Public Assets Management of the Government of India.

Earlier in 2018, Indian authorities were unable to sell 76% of the airline’s shares and pay off about $ 5.1 billion of its debt.

The buyer will receive 100% of the Air India Express low-cost airline and 50% of AISATS, which provides cargo and ground services at major Indian airports, the document states. Several subsidiaries of Air India have been excluded from sale.

Indian authorities have invited potential buyers to submit initial proposals before March 17. The government also noted that the Indian company will retain control over the carrier.