Tuesday 25 February 2020
 
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India plans to sell 100pc stake in Air India

NEW DELHI, India, 28 days ago

India has given ‘in-principle’ approval for the strategic disinvestment of AI by way of the transfer of management control and sale of 100 per cent equity share capital of AI held by the Government of India (GOI).

The equity share capital will include AI’s shareholding interest of 100 per cent in Air India Express Limited (AIXL) and 50 per cent in Air India SATS Airport Services Private Limited (AISATS). The GOI has appointed professional services firm EY as its transaction adviser to advise and manage the proposed transaction.

AI is India’s flag air carrier with a significant market position in international and domestic operations. AI, along  with AIXL, has  about 50.64 per cent  share  of  the  international traffic  to/ from  India  among  Indian  carriers  and  approximately 18.4 per cent  share  including  global airlines (ex India) as of the second quarter of the 2020 fiscal year (Q2FY20). The two airlines combined control around 12.7 per cent of the Indian domestic market as of Q2FY20.

AI is a member of the Star Alliance since July 2014. AI is  one  of  the  most  extensive  flight  service  providers  in  India  with  network coverage of 98 destinations (56 domestic destinations with around 2,712 departures per week and 42 international destinations with around 450 departures per week)as on November 1, 2019.

AI offers 75 additional destinations through its secondary network of code share operations covered under 25 codeshare agreements with foreign carriers.  During FY 2019, AI carried around 22.1 million passengers and recorded operational revenues of INR 255,088 million ($3.5 billion).

AI has  an aircraft fleet of  121 aircraft(excluding  4  B747-400  aircraft)as  on  November1, 2019,mainly  comprising  Airbus  and  Boeing  aircraft  such  as  A-319,  A-320, A-321, B-777 and B-787 out of which 65 are owned/ on finance lease/bridge loans, 21 are on sale and lease back model and balance 35 are on operating lease. – TradeArabia News Service




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