The last date for a buying a majority stake Air India came and went, without any one bidding for the Maharaja. Though some companies and airlines had expressed interest in the airline, they slowly fell by the wayside.
As informed by the Transaction Adviser, no response has been received for the Expression of Interest floated for the strategic disinvestment of Air India. Further course of action will be decided appropriately.
— Ministry of Civil Aviation (@MoCA_GoI) May 31, 2018
Top 5 things about Air India disinvestment
- March 28: Government issues preliminary information memorandum for the sale of up to 76 per cent stake in Air India along with management control to private entities.
- Sale expected to fetch between $1.2 billion to $1.5 billion
- Profit-making Air India Express and joint venture AISATS, an equal joint venture between the national carrier and Singapore-based SATS, to be disinvested first.
- May 1: Govt eases some terms after interested bidders ask 160 questions on various aspects, including those related to slots, bilateral rights and employee rights. Government clarifies in a 19-page document and gives the same reply to 50 queries – details would be provided at the time of RFP (a stage after submission of expression of interest)
- Bidders advised to assess the impact of disinvestment process on the existing code share agreement on their own. The last date of submission of Expression of Interest (EoI) of Air India extended to May 31 from May 14.
- May 22: Government says if no bids are submitted then AI may not be sold
- May 31: No bids received till 5 pm.
- Jet Airways and Indigo show interest in the early stages but withdraw after the initial terms are disclosed
- Tata group expected to bid at the last minute but does not
- Few foreign airlines, private equity firms like Warburg Pincus, sovereign wealth funds, and the World Bank’s private investment arm, International Finance Corporation were also reported to be interested.