Several deep-pocketed and some surprise entrants have bid for national carrier Air India and the country’s second-largest oil marketer BPCL. The privatisation of these companies could provide a pointer to the future of the Modi government’s ambitious disinvestment programme that can potentially fetch $350 billion.
Conglomerate is in talks with Singapore Airlines (SIA), its joint venture partner in Vistara, to exempt a non-complete clause and team up with it to launch a fresh bid for India’s ailing national carrier.
By pressing ahead at this time with the privatisation of Air India and announcing that Non Resident Indians will be allowed to bid for and buy 100 per cent of India’s ailing national carrier, Modi is proving himself to be unabashed about continuing to walk the talk on economic reforms, writes India Inc. Founder and CEO Manoj Ladwa.
India’s national carrier, which failed to find a buyer when it was put on the block two years ago, is once again in play. And this time, the Modi government has sweetened the deal by removing more than $4-billion debt from its books and offering to sell a 100 per cent stake. The last time the Maharajah, aka Air India, was up for sale, it found no takers. When the Narendra Modi government tried to sell a 76 per cent [...]
Indian airlines are growing the fastest in the world, but a majority of them are also losing money. A number of factors, such as the world’s highest aviation turbine fuel prices and problems with some aircraft brands, are challenges they need to overcome but there’s massive room for growth as a majority of Indians still consider flying very expensive. India’s oldest private sector airline, Jet Airways, downed shutters “temporarily” in April as lenders tried to find a white knight buyer [...]
The proposed privatisation of India’s state-owned carrier will prove a balancing act for the government. The proposed privatisation of Air India, the country’s flag carrier, will test both the Narendra Modi government’s resolve to push through politically contentious reforms as well as its ability to balance the need to make the sale attractive to private investors while warding off opposition charges that it was “nationalising losses and privatising profits”. It will be a litmus test of how much his government [...]