CAPA said according to aviation consulting firm CAPA India the National passenger carrier Air India might shut-down, if it’s ongoing divestment program fails due to the terms and conditions set in its 'Express of Interest' (EOI) document. Meanwhile it is critical for the central government to amend the labour and debt conditions for the divestment process to succeed.
Earlier the consulting firm tweeted on May 4 that "Three key themes emerging on @airindiain divestment and critical that terms in EOI particularly for labour & debt are amended, as successful bidder will need to invest in restructuring and absorbing losses for several years, in addition to consideration paid for 76%". Moreover the development comes few days after the central government extended the submission deadline for the EOI bids under Air India's divestment process to May 31, 2018.
Furthermore the central government owns 100% equity of Air India. In turn,
the airline holds full stake in Air India Express, while it holds 50% stake in
the joint venture AISATS. Moreover as per report it has been planned to divest
76% government stake in AI, 100% in AIXL and 50% in AISATS.
