Air India divestment process finally takes off, with sweetened deal terms

Almost two years after a failed attempt, the government on Monday launched the biggest privatisation exercise in value terms, inviting preliminary bids for Air India with sweetened deal terms. Full management control, reduced debt, a leaner organisation and flexibility to form a consortium are among the relaxed terms on offer for Air India divestment as potential bidders weigh their options to buy what was once a national asset.

According to the bid document, the government would divest its entire stake in the state-owned airline and subsidiary Air India Express, along with its joint venture Air India SATS Airport Services. The Air India brand will, however, have to be retained by the new owner.