Debt-heavy flag carrier links Delhi with Scandinavia.
Uncertainty about the fate of India’s debt-heavy flag carrier Air India continues to weigh on the airline’s wings, with the Indian government now reportedly divesting its stake in the carrier by breaking it up into four units and offering at least 51% of each for sale.
The whole divestment process at Air India, which connects both Copenhagen and Stockholm with Delhi, is expected to be completed by the end of the year.
As part of the divestment, Air India and its low-cost wing Air India Express will be offered as a single company, Bloomberg reports. Its regional arm, ground handling and engineering operations will be sold separately.
Meanwhile, a decision has been made that foreign entities will be allowed to own up to 49% in the airline without need for government approval.
There have been some reports since this decision was made suggesting that Singapore Airlines and the Tata Group are open to bidding. SIA and Tata Son, holding company of Tata Group, are joint owners of the Indian domestic airline Vistara. Hwever, AirAsia India has ruled out plans to bid, the Economic Times of India reports.