News
New Delhi extends deadline for potential Air India bidders
May 4th 2018
The Indian government in New Delhi has extended the application deadline for potential bidders interested in acquiring a 76% majority stake in Air India and Air India Express, as well as a 50% shareholding in ground handling firm Air India SATS. Read More »
Interested parties were initially requested to place their bids by May 14. This has now been extended by two weeks, to June 1.
Extending the deadline became necessary after both IndiGo Airlines and Jet Airways pulled out of the race for Air India, saying a takeover would be too costly, given Air India’s significant debt.
New Delhi said a new owner would be able to fully utilize Air India’s existing bilateral rights and slots, in addition to being allowed to “realise operational synergies”, which could include modification of current codeshare and partnership agreements.
The government noted that management control over ‘Air India 2.0’ would rest solely with the new majority owner. New Delhi’s remaining 24% interest in the airlines would be limited to equity.
