Mehar Singh/DELHI
The privatisation of Air India is gaining momentum, with the Indian Government poised to invite expressions of interest from potential investors, and British Airways giving the clearest indication yet that it might bid. Other likely airline bidders include BA's rival Virgin Atlantic and/or its part-owner Singapore Airlines, plus Emirates and, possibly, German carrier Lufthansa.
India's minister for disinvestment, Arun Shourie, says invitations for expressions of interest in Air India will be issued soon. The government gave the go-ahead for the disinvestment of 60% of its stake in Air India in May, with 40% earmarked for a strategic partner. A foreign carrier may take part of this latter stake, amounting to no more than 26% of the airline.
Meanwhile, BA chairman Lord Colin Marshall has visited Delhi and reportedly met Shourie and civil aviation minister Sharad Yadav. Although BA says Marshall's visit was private, it confirms that he did "express an interest" in the Air India privatisation, but maintains it is "still too early to say" if it will bid. BA will also not comment on a possible tie-up with privately owned domestic carrier Jet Airways, which could lead to a joint bid.
Virgin Atlantic has previously expressed an interest in Air India, with which it codeshares, although chairman Sir Richard Branson was quiet on the subject during a July visit to Delhi. Emirates has also put its interest on record, and group managing director Maurice Flanagan is reportedly due to visit soon, as is a senior Lufthansa manager. Both are expected to meet ministers.
SIA is also considered a likely bidder, while Indian companies Tatas and Reliance Industries are expected to lead the domestic bids.
Meanwhile, with both Air India and Indian Airlines requiring new aircraft, India's deputy civil aviation minister is embarking on a European tour, including visits to Airbus and ATR, while the prime minister and finance minister will be in the USA.
Fleet upgrades have been repeatedly delayed by bureaucracy and a lack of funds.
Source: Flight International
