Air India privatisation likely to face further delays due to COVID-19 outbreak

According to CAPA, the government’s plan to divest its stake in Air India may face further delays in the wake of the COVID-19 outbreak. Till then, the government may have to infuse about Rs 30 billion as interim funding to ensure continuity of operations and to keep the national carrier at least in its current condition until the sale transaction is concluded. The government has already extended the date of submission for expressions of interest to April 30, 2020 from March 17, 2020, due to the pandemic. CAPA has further stated that the government should devise a fallback plan to continue to operate the airline for the short to medium term, in case the intended privatisation fails to conclude.