Air India's new owner will take on debt of Rs 33,392 crore, which could make it less attractive for potential bidders.The sale of Air India, long a drag on the exchequer, has been attempted several times before, making this one of the key initiatives of the government and sparking political opposition. EoIs have to be submitted by May 14, 2018, and the government intends to complete the sale by the end of 2018.“As a part of the disinvestment, 76% equity stake in Air India Ltd along with Air India’s 100% equity stake in Air India Express Ltd and Air India’s 50% equity stake in AISATS is being disinvested by the government of India,” the document said.“Air India has interests in other entities which are in the process of being transferred to a separate SPV (special purpose vehicle) and will not be a part of the proposed transaction.”These other entities that will be transferred to the SPV include Air India Engineering Services, ground-handling company Air India Air Transport Services, Airline Allied Services (which operates Alliance Air) and Hotel Corporation of India. IndiGo and an unnamed international carrier have officially expressed interest in bidding for Air India. However, the government’s decision to keep the airline whole and not break it into international and domestic units may impact IndiGo’s plan. Jet Airways and the Tata Group are also likely bidders but have not made public any such plans.

Source: Economic Times March 28, 2018 11:41 UTC