Air India divestment: History suggests still some way to go

After a series of changes to the bidding conditions and a number of deadline extensions, the government has finally closed the first phase of Air India’s disinvestment having received “multiple expressions of interest”. While in light of recent events concerning Air India’s disinvestment, this is an important step forward in the sale process, history of the airline’s strategic sale exercise would suggest there is still some way to go.

What is the history of Air India’s disinvestment?

The first ever attempt to conduct a strategic sale of the airline was made in 2001 during Atal Bihari Vajpayee’s NDA government, when 40% of the airline’s equity was put on the block. Initially a number of foreign airlines including Lufthansa, Swissair,