Andrzej Jeziorski/SINGAPORE
Air France and Virgin Atlantic are among major airlines expressing interest in the privatisation of Air India. At the same time, British Airways - named as a potential investor by a UK newspaper - has dismissed the suggestion that it could make a joint bid with Indian regional carrier Jet Airways as "pure speculation".
The airline interest has arisen as the Indian Government named J M Morgan Stanley, the Indian arm of Morgan Stanley Dean Witter, as global adviser in the privatisation, with responsibility for drafting a detailed plan for the sell-off of 60% of Air India.
Virgin Atlantic chairman Richard Branson says his company is a "strong contender" for the privatisation. Speaking in New Delhi, he says: "I will shortly be talking to my bankers about this." Virgin launched twice-weekly code share flights with Air India between New Delhi and London on 6 July, and intends to add a third frequency in October.
Air France says it is "interested" in the sell-off, but will wait for clear guidelines for the privatisation process to be laid down before deciding whether to bid.
The Indian Government is expected to request bids in August. The privatisation is expected to offer 10% of the airline to employees, 10% to Indian financial institutions and 40% to strategic partners, with up to 26% of this going to a foreign airline.
• In early July, Air India issued new requests for tenders for between two and six Airbus A310-300s and one Boeing 747-400 to be leased from the fourth quarter of this year, after failing to find the aircraft in an effort. The airline had been negotiating with Airbus Industrie to lease four A310s now operated by Emirates, while no 747 offers were received.
Air India says it has adjusted its 747 lease plan from a three-year to a five-year lease, in the hope that this will prove more attractive to lessors. Negotiations to lease two 747-300s are ongoing with Singapore Airlines and one other party.
Source: Flight International
