Air India privatisation News

Salt-to-software conglomerate Tata Group was among the "multiple" entities that had put in preliminary bids for buying loss-making Air India in December last year. The transaction has now moved to the financial bids stage, the sources said, adding that the deal is expected to conclude by September. The government is selling its entire 100 percent stake in Air India that has been in losses ever since its merger with domestic operator Indian Airlines in 2007.

Binoy Viswam said over the past two years, the entire Air India organization has been severely affected by the Government's decision to privatise the airline. President of Alliance Air Employees Union Binoy Viswom said that the incident is heart-wrenching and a cause of deep sorrow. Binoy said that the matter should be investigated to prevent any such incidents in the future.

Swamy has threatened to file a complain if he finds anything wrong with the deal.

He said the airline would be kept independent after the stake sale.

In June 2017, the government had decided to exit fully or partially the national carrier, which is sitting on Rs 60,000 crore debt.

As part of efforts to revive ailing Air India, the government is working out the modalities for its strategic disinvestment.

The government has not said whether it will sell all or parts of Air India and what it might do about the loss-making airline`s debt burden of $8.5 billion.

Air India is drawing up a proposal to offer voluntary buyouts to just over a third of its 40,000 employees, two government officials said, in what would be one of the largest such offers in India's state sector, as the airline slashes costs ahead of a 2018 sale.

Having joined the race to buy out Air India, IndiGo President Aditya Ghosh has told employees that it will not embark on the journey if it is not profitable and jeopardises interests of the airline.

Pilots at the airline had opposed the appointment of Kathpalia when his name was cleared for the post by the Appointments Committee of the Cabinet in March.

IndiGo said in a letter it would be interested in buying out the International operations of Air India and its low-cost wing, Air India Express.

The head of the Mahindra Group conglomerate, who is known for risky acquisitions, made it clear that he was not in contention.

Air India should be privatised as its debt level is "simply not sustainable" and government action on the airline's future course is likely within six months, Niti Aayog vice chairman Arvind Panagariya said on Thursday.

The debt-laden Air India is staying afloat on taxpayers' money and the government is looking at all options for its revival, including privatisation.

National carrier Air India on Friday said it will not place any order for new aircraft till there is clarity on its future course, including possible privatisation.