Air India is seeking a global financial adviser as it once more prepares for the latest privatisation plan. That follows Indian Government approval for the sale of 60% of the state-owned carrier.
India's Cabinet approved a plan at the end of May for the sale of 40% of the airline to a strategic partner, or partners; 10% to domestic institutions and the public; and 10% to airline employees. Foreign concerns, "which can be a foreign airline", will be restricted to holding no more than 26%.
The approval came four months after the Cabinet gave basic approval to the sale of 51% of Indian Airlines, which is also owned by the state.
Under that plan, 26% of the carrier will be sold to a strategic partner while 25% will be available to the public, financial institutions and employees. Foreign carriers will not be allowed to enter the bidding.
The Indian Government is also seeking five airports - Bangalore, Calcutta, Chennai, Delhi and Mumbai. The government is offering concession periods for between 30 and 59 years.
Source: Airline Business
