Connect with us

Business News

Air India Sale: Who will Buy Debt Ridden, the Indian National Carrier – Air India?



Air India Sale is going to finally commence this year. The Indian National Carrier – Air India is on sale and struggling to find buyers. The Indian government has decided to sell major shares of the national airlines operating in the deficit.Will the Modi Government be able to pull off one of the biggest and most prestigious sale in the Indian History?

Interesting Facts About Air India

  • Air India started as ‘Tata Airlines’ and after Independence in 1947, the Indian Government bought 49% of its share.
  • Air India’s first international flight was for London on June 8, 1948.
  • Air India has so far made the most of the safest air-lift. In 1990, when Iraq invaded Kuwait, then Air India within 2 months safely transported more than 1 million Indians.

Air India – Under a Debt of $8B

This is the first time in the past few decades that the Indian government has accepted the disinvestment of such a valuable asset. Air India presently is in a debt of about whopping $8B. Obviously, this massive amount of $8B of debt will go into the buyer’s account.

If Air India is privatized then those claims will be stamped in which PM Modi is manifested as an ‘economic reformist’ leader. Even though this is not such an easy step, as these attempts were made earlier also, but could not be executed. There are threats emanating from unions across the country that if Air India is privatized then the Modi Government should they ready to face national wide protests.

Read Indian News: Has Indian PM Narendra Modi Failed the Nation?

Air India was once the only and a premier national carrier of the country, however, things changed after the entry of private airlines. Due to poor service, frequent cancellation of flights, delayed timings, maintenance issues, lethargic and unfriendly staff, the image of Air India took a severe pounding.

Since 2007, Air India has been a loss-making entity, despite the fact that aviation sector in India is growing at an astonishing rate of 20% per year. Experts believe that the aviation industry is a great platform to earn profits, especially in the ever-growing Indian market.

Sale of Air India

According to the Government of India, Air India will offer these four for sale:

  • 76% share of the airline’s major carrier – Air India, its low-cost arm Air India Express and subsidiary AISAT (Air India Limited & Singapore Airport Terminal Services)
  • Alliance Air- Its Regional Branch
  • Air India Transport Services
  • Air India Engineering Services Limited

Who Will Buy Air India?

Indigo has shown great interest in buying Air India, but it is also very circumspect. According to IndiGo’s co-founder Rahul Bhatia, “We want a deal where we grow and also earn profits. We do not want to any deal to just increase our services.”

Air India, IndigoImage copywriteGETTY IMAGES


Singapore Airlines has kept their options open for bidding for Air India. Indian Jet Airways has also shown interest in this deal with an international partner. As per media reports, Air France and Delta might also participate in the auction of Air India. Earlier Qatar Airways was also incorporated in the list of potential buyers but later declined any such probability.

Asian News at EurAsian Times: F-35 India Deal: Is India Acquiring F-35 Lightning II Fighter Aircraft from the US?

According to Indian government rules, a foreign air carrier can have a maximum of 49% share in the Indian airlines. Hence, international airlines like Singapore, Qatar Airways etc will not be able to buy more than 49% of the stakes in Air India. To join the auction of Air India, organizations will have to submit their proposals by 14th May 2018 and shortlist organizations will be notified by 28th May 2018.




Americas1 hour ago

Massive Flaw In US’ Stealth F-35 Fighter Jets Exposed During NATO Drills

In a massive show of strength, reassurance to NATO allies and a warning to the traditional punchbag – Russia, six...

Armenia-Azerbaijan Armenia-Azerbaijan
EurAsian Region2 hours ago

Armenia Declares Martial Law, Prepares For A Possible War As Border Conflict Escalates With Azerbaijan

Due to flaring tensions between Armenia and Azerbaijan over the region of Nagorno-Karabakh, Armenia on Sunday declared martial law and...

China-aerial-space-Indian-Drone China-aerial-space-Indian-Drone
Americas10 hours ago

US Demonstrates Technology To Launch A ‘Drone From A Drone’ & Recover It Back Mid-Air

General Atomics, the American defence giant has stated that it has carried out captive carry tests of its new air-launched...

Featured11 hours ago

After Ladakh, Why Gilgit-Baltistan Could Be Next Big Flash Point Between India And China?

In a bid to gain further control on the disputed Gilgit-Baltistan region, Islamabad has decided to upgrade its status as...

sharif-modi-meeting sharif-modi-meeting
Featured13 hours ago

Nawaz Sharif’s Speech Against Pakistan Army Widely Celebrated In India – Imran Khan

Pakistan PM Imran Khan denounced former PM Nawaz Sharif and stated that the opposition has only one agenda i.e. how...

Asia Pacific24 hours ago

Indian Army Has Deployed Additional 100,000 Troops Near The LAC – Top Chinese General

Despite the sixth round of Corps Commander level meeting between India and China which failed to provide any significant breakthrough,...

F18-India-Deal F18-India-Deal
Featured24 hours ago

NATO Commitment Forces Germany To Acquire F-18 Super Hornets & Reduce Number Of Typhoons

German President Frank-Walter Steinmeier is looking to procure the new Eurofighter Typhoons and F-18 Super Hornets to bridge the gap...

Expert Reviews1 day ago

‘Hot Winters’ Ahead – China Says PLA Needs To Teach A Harsh Lesson To ‘Insincere’ India – OPED

The portents of war between China and India seem to be getting more and more darker by every passing day....

Featured1 day ago

SAAB Delivers Gripen-E Jets To Brazil; Offers ‘Exceptional Deal’ To The Indian Air Force

With India’s new FDI model under the new indigenization drive, SAAB has seen it as a lucrative offer and is...

Europe1 day ago

After Rafale Jets, This Air Force Wants Stealth F-35s That Was Once Meant For Turkey?

While some recent reports indicated that with the arrival of F-35s, UAE cold shed some of its F-16s and sell...