The government had also considered other possibilities, such as management lease and retail listing: both were seen as unfeasible for Air India, he said.The Tata Group, IndiGo, Jet Airways and Spice Jet were among the airlines that held discussions with the government on Air India. The alternate mechanism, headed by the finance minister, is expected to consider a revised proposal on the carrier’s sale next week. There is a limited universe of bidders for Air India: Either we have to expand that, or align with market expectations.”In the current proposal, the government is offering 76% in Air India, which includes 100% in low-cost international subsidiary Air India Express and 50% in a ground handling company AISATS. Another senior official, aware of the development, said that the government was aware of the expectations of the likely bidders. “These clarifications would have come at a later stage during the signing of the shareholders’ agreement,” said a source.Concerns were also raised on too much of debt and liabilities at the entity being divested and asset base of the carrier: All non-aeronautical assets of Air India have already been transferred to a new company named Air India Assets Ltd.

Source: Economic Times June 04, 2018 01:30 UTC