Opinion | Speaking in silences: what the Air India information memorandum

The Air India preliminary information memorandum was release this Monday. It highlights the government’s decision towards the strategic disinvestment whereby a hundred percent stake in Air India, Air India Express and a fifty percent stake in AirIndiaSATS (the ground handling arm) is up for sale. The memorandum is full of information and numbers and clearly points to the fact that this is a complex acquisition and not one for the faint hearted. But the memorandum also speaks in silences. As such what it does not say is as important as what it does.

Broadly the terms laid out include that the buyer will assume $3.3 billion dollars of debt in exchange for three separate companies. This debt will be backed up by assets. But then the government guarantees go away once the new bidder takes over. How this plays out is yet to be seen. The Air India brand is to continue with 21,364 employees directly or indirectly involved in the venture.