Friday, January 22, 2021
Markfed Sohna New

verka new year

Innocent Hearts INNOKIDS Banner

All eyes on Air India EoI on Monday, likely suitors are Tatas, Hindujas

- Advertisement -

New Delhi, Jan 26, 2020-

As the government is set to invite preliminary bids from potential investors for selling 100 per cent stake in Air India on Monday, all eyes are on the portion of airline debt to be taken off its books and qualification for suitors.

Prospective buyers would have to respond to the Expression of Interest (EoI) by March 17, 2020.

Industry sources said that some of the potential bidders could be Tata Group, Hindujas, IndiGo, SpiceJet and a few private equity firms.

Some of the foreign airlines could tie up with local players to place their joint bids.

While overall economic environment remains subdued, industry analysts said that there would be significant investor interest for Air India given its wide domestic and international network, traffic rights, slots at key foreign airports such as London and Dubai, technical manpower and large fleet.

“Besides, the government is ready to go the extra mile to sell off the airline. The government has hinted that it will agree to the demands of potential buyers as it is determined to completely exit the airline business,” said Rajan Mehra, CEO of Club One Air and former India head of Qatar Airways.

Air India is currently bleeding heavily with average daily loss pegged at Rs 20-25 crore. The Modi government is not keen to give any further financial support to the airline and has announced to shut it down if the second disinvestment bid fails.

As per official data, Air India had an operating revenue of Rs 25,509 crore in FY19. As its operating expense during the fiscal was Rs 30,194 crore, the airline had an operating loss of Rs 4,685 crore. On a net basis, its loss was a record high at Rs 8,556 crore (provisional) in the previous financial year.

Air India has a fleet of 125 aircraft and its domestic market share is 11.9 per cent as on December, 2019.

The Modi government had invited the EoI in 2018 to sell 76 per cent stake in the airline but it ended up being a no-show with not a single private firm expressing interest.

Learning from its previous experience, the government has decided to sell its entire 100 per cent stake in the airline. It is also learnt to have sweetened the deal by removing a large part of its Rs 60,000 crore debt and clearing other liabilities.

“We expect significant interest as the Government of India (GoI) has structured a very attractive offer,” said Kapil Kaul, CEO (South Asia) of Sydney-based Centre for Asia Pacific Aviation (CAPA).

While many industry veterans are bullish on investor interest for Air India, some of the sector experts said that it may not be easy given the current business environment globally.

“The global growth forecast has been downgraded. India has seen its GDP growing at slowest pace in the last over six years. The fuel and foreign exchange situations are not great either,” said an expert wishing not to be named.

He, however, added that it is a do-or-die situation for the government as it can no longer infuse money into an airline which is losing Rs 25 crore a day.

An industry insider said that IndiGo is one of the strong contenders for Air India but given the fighting between its co-founders it will be difficult to get shareholders’ approval for placing the bid.

“Initial bids can be placed but before signing binding agreement shareholders’ approval would be required,” said the insider.  (Agency)

- Advertisement -

Yes Punjab - TOP STORIES

Punjab News

Sikh News

Transfers, Postings, Promotions

- Advertisement -Bibi Jagir Kaur Guru Gobind Singh Prakash Purab Banner

Stay Connected

20,466FansLike
112,826FollowersFollow

ENTERTAINMENT

The legend of Netaji on screen

New Delhi, Jan 21, 2021- The legend of Netaji Subhash Chandra Bose, his life and persona, even death, never ceases to amaze filmmakers. Various facets...

Bigg Boss 14 - The Latest

National

GLOBAL

OPINION

Exodus of Kashmiri Pandits

Exodus of Kashmiri Pandits: Unending wait for justice – by Deepika Bhan

Why is it difficult to get justice? This is a question that haunts the minuscule community of Kashmiri Pandits. Each year January 19 is...
Human Brain

Awareness is life – by DC Pathak

It is interesting that of all the professions it is a career in Intelligence that works for sublimating three important mandates that governed life....
US Capitol Violence

Political Violence in Washington – by DC Pathak

The presidential election in the US marked by an unusually confrontationist run up to the polls and an equally bitter post-poll phase of transition,...

SPORTS

Health & Fitness

Prostate Cancer

AI-based technique may detect prostate cancer from urine

Seoul, Jan 21, 2021- A novel Artificial Intelligence (AI)-based technique may help in diagnosing prostate cancer from urine within only twenty minutes with almost 100 per cent accuracy, a new study suggests. The research team, including Kwan Hyi Lee from the Korea Institute of Science and Technology (KIST), developed this technique by introducing a smart AI analysis method to an electrical...

Gadgets & Tech

error: Content is protected !!