Reportedly the government will start road shows for privatization of ailing state run air india this week in singapore with Disinvestment Secretary T.K. Pandey along with senior aviation ministry and air india officials to brief the prospective buyers for complete stake sale in the airline. Meanwhile sources said Pandey will be in singapore this week along with senior aviation ministry and air india officials to meet prospective bidders, address their concerns on air india debt position, employee issues, and start the road shows.
Furthermore there are possibilities now for air india Expression of Interest (EoI) to be floated this month after this meeting. Perhaps the national carrier has a debt of Rs 57,000 crore and the bids will be invited for 100% stake. Civil Aviation Secretary pradeep Singh Kharola and air india management have been discussing with the trade unions assuring them of security even after privatization and the unions are opposed to privatization fearing job losses.
Moreover as part of efforts to clean up the balance sheet of air india before stake sale, around Rs 30,000 crore of its debt is proposed to be repaid by way of proceeds from the issuance of bonds by its special purpose vehicle, air india Asset Holding Ltd (AIAHL). Perhaps AIAHL has already garnered a total of Rs 21,985 crore by way of bond issues and the proceeds would be utilized to pare the debt of the national carrier and it has employee strength of 20,000 and has a market share of 13%.
