Government To Sell 76% Stake In Air India, Give Up Management Control

Air India is the country’s flag air carrier with a significant market position in international and domestic operations.

Government To Sell 76% Stake In Air India, Give Up Management Control
Air India is the country’s flag air carrier with a significant market position in international and domestic operations.
All India | Reported by Oineetom Ojah, Edited by Anindita Sanyal | Updated: March 28, 2018 20:04 IST

 

The memorandum said that the government has given ‘in-principle’ approval for the disinvestment
New Delhi: The government today took the first step towards divesting the Air India — the debt-ridden national carrier supported for years by public money — triggering vehement protests from opposition. The plan is to transfer management control along with 76 per cent equity, for which an expression of Interest was released and multinational consultancy firm Ernst & Young was appointed as the advisor.

The divestment will be done through open, competitive bidding.

The national carrier has been running on taxpayers’ money, failing to profits in more than a decade. By the end of 2016-17, the airline had a debt of nearly 49,000 crore. By the end of the current financial year, its debt is expected to go up by another R
s.
3,500 crore.

The opposition, which earlier accused the government of “not caring” about the national carrier, was up in arms

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