Four international airlines, two Indian companies and global advisory firm expresses interest in buying Air India

Four international airlines – British Airways, Lufthansa, Singapore Airlines and Etihad – and two Indian companies have shown interest in Air India’s disinvestment. According to the MoCA, a global advisory firm – Swiss Aviation Consulting – has also come forward to participate in the bidding process. However, the interested bidders have sought relaxation in the norms for forming a consortium. Besides, queries have been raised by private equity funds such as Warbug Pincus, and GIC Private Limited and Temasek Holdings related to government’s rights on the residual 24 per cent stake in the entity, and provisions on integrating their existing business with Air India. In the memorandum, the government has stipulated that the winning bidder cannot merge the airline with its existing business as long as the government holds a stake. Besides, the winning bidder is also required to list Air India on a stock exchange and is required to abide by conditions designed to safeguard employee interests, restricting its ability to cut staff.