Nicholas Ionides/SINGAPORE
Key airline contenders for a stake in Air India have dropped out, leaving only two candidates publicly confirming interest and casting doubt on the success of the partial privatisation plan.
Technical bids were received by 23 February. Only two groups have confirmed that they remain in play - a consortium involving the Tata Group and Singapore Airlines, and one led by the Hinduja Group.
Despite dwindling interest, the Indian Government says it remains committed to a sale and that remaining candidates will carry out due diligence, after which binding bids will be sought.
Air France and Delta Air Lines dropped out of the bidding prior to last month's deadline after failing to form a consortium with Indian Tobacco, while of KLM, SAirGroup and Emirates - also seen as potential bidders - only the latter will confirm that it filed an initial expression of interest, with the others saying they never intended to take a stake. The Dubai-based carrier adds that it is no longer interested.
Lufthansa was recently touted as a partner in the Hinduja bid, and though the German heavyweight says it has no plans to take an equity stake, it has become involved through Lufthansa Consulting as a technical adviser.
A June target has been set for the Air India sale, with up to 40% available to a strategic partner. The partner may include a foreign component, taking no more than 26% of total equity. Domestic institutions and airline staff will be offered another 10% each.
Indian Airlines is also to be partially privatised by June, although sources say the government may press ahead with Air India first.
A date for the completion of Biman Bangladesh Airlines' partial privatisation has slipped by four months and a new 30 June deadline for the sale of 49% has been set.Source: Flight International
