With the government finally biting the bullet, potential buyers are weighing up the Air India opportunity.
After much dilly-dallying and half-hearted attempts to revive the fortunes of Air India, the government has decided to off load the airline. The fact that Air India’s revival is beyond the wherewithal of the government became evident when Finance Minister Arun Jaitley talked about the need for Air India’s divestiture in a television interview. Since then, things have moved fast. Jaitley’s comments were followed by the cabinet’s in principle approval for the stake sale in late June. A group of ministers will delve into the finer details of privatisation, including the amount of stake to be sold, treatment of debt and its subsidiaries, and how to manage public interests.
Initially, it seemed that the government may face difficulties. It was believed that AI’S massive debt (₹46,570 crore), accumulated losses (₹47,440 crore between 2007/08 and 2015/16), and privatisation-averse employee unions could deter potential buyers. But that’s not the case.
According to reports, several entities have informally shown interest in buying the beleaguered airline. Low-cost carrier IndiGo has sent a formal letter to the civil aviation ministry expressing interest in buying the international operations of the airline. In fact, the lure of international operations is so big for IndiGo, that it could acquire the entire airline if the government sells the whole nine yards.
Bu hikaye Business Today dergisinin July 30, 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today dergisinin July 30, 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS