IndiGo, India’s largest airline by market share, and Abu Dhabi-based Etihad Airways have met government officials and evinced interest in ailing national carrier Air India, a senior government official told ET.
“Representatives from these companies have met government officials and, unofficially, shown interest in the national carrier. The Tata Group, however, has not shown any interest yet,” said the official, who sought anonymity.
The government, which could not sell 76% in Air India last year, is offering 100% stake this time. But the response to road shows in Singapore and London were not encouraging.
Officials said that they did, however, see interest from a couple of private equity investors. “There are these two companies and a couple of private equity investors who have shown some interest. An airline as big as Air India is unlikely to receive any more interest,” said the official.
The Centre is likely to come up with the expression of interest (EoI) documents by next month.
The National Investment and Infrastructure Fund is an infrastructure investment company anchored by the Indian government, where ADIA is a key investor.
Etihad, till recently, owned 24% in Jet Airways but decided against funding the financially crippled airline, leading to its grounding in April.
According to the plan being discussed, the government will pay Air India’s dues amounting to Rs 22,000 crore to vendors such as airports and oil companies before putting the airline up for sale. It may also waive the airline’s entire working capital debt of about Rs 15,500 crore, so that Air India is left with a loan burden of about Rs 20,000 crore.
