Jet Air, Delta, Air France—KLM Interested To Invest In Air India
After the declaration of disinvestment of Air India by the government, many players are showing interest in acquiring the same. Among them, Delta Air Lines, Jet Airways and Air France KLM are key players.
However, the representative from Jet Airways didn’t make any comment on their participation in the disinvestment.
This is to be noted that the existing CEO of Jet Airways, Vinay Dube worked for 10 years at Delta Air Lines before he joined Jet Airways. He was in the post of the Senior VP at Delta.
By acquiring Air India, companies can profit in terms of bilateral powers and foot print, even though the Indian career is drenched in a pool of debt.
Indigo and an undisclosed overseas airline have showed their interest in the Air India share sale. Other companies are slowly to evolve after the committee of ministers finally outlines the process.
The Air India privatization process is likely to be completed by the end of this year and most likely it will be sold as 4 separate bodies. Discussions are going on among several players, third parties and multiple Air India group entities.
The transport service – AIATSL and engineering service – AIESL will be out up for sale as two different entities. AISATS, Air India Express and Air India will be sold as one; whilst, Alliance Air will be a separate entity.
According to ministry of Civil Aviation, Air India’s finances were improving last year, March.
The Indian airline is debt ridden with an amount of more than Rupees 50 thousand crore. This is the prime reason behind the decision of its strategic disinvestment.
Following the announcement, Mr. Arun Jaitley who leads AISAM, is yet to decide upon certain issues.
The UPA government approved a plan in the year 2012 that allowed Air India to run on the money of the taxpayers. According to the plan, the estimated amount Air India is to be received was around 30 thousand 2 hundred crore by the year 2021. Approximately Rupees 26 thousand 5 hundred crore has been poured in by the government into the airline company.