Air India sale: Entities can bid based on affiliates’ financial strength

Entities can bid for national carrier Air India on the basis of the financial strength of their affiliates, a proposition that could attract more bidders.

In its second attempt in as many years to divest loss-making Air India, the government came out with the Preliminary Information Memorandum (PIM) on Monday.

The government has proposed selling 100 per cent stake in Air India along with budget airline Air India Express and the national carrier’s 50 per cent stake in AISATS, an equal joint venture with Singapore Airlines.

As per the PIM, a bidder may also “qualify on the basis of net worth of its affiliate, provided such IB (Interested Bidder) itself has a positive net worth…,” subject to certain conditions.