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For Sale: Air India Airline | Israel today

2020-01-29T20:28:05.946Z


Tourism


Government of India offers benefits to potential airline purchasers, with what seems like a desperate attempt to get rid of the country's biggest airline

  • Offered again for sale. Air India

    Photo:

    Reuters

The Indian government continues to try to sell Air India, India's national airline, which also operates in Israel and is in a difficult financial situation.

Two years ago, the company was put up for sale, but the government demanded that it continue to hold 24 percent of the company, and under these conditions was not an interested party in the amount requested, and the sale was canceled. Now, the Government of India is reportedly improving conditions and offering benefits to potential airline purchasers with what appears to be a desperate attempt to get rid of the country’s biggest company.

A few months ago it was reported that the company was on the verge of bankruptcy and it is now unclear what its future will be. Air India operates domestic and international flights alongside the Lukascoast company called Air India Express and a service company at India's airport called AISATS. The offer is valid until March 17 this year, and the Indian government expects investors to come and try to buy the company.

Reports also indicate that this time the government will try to sell 100 percent of the company, compared to the previous time it tried to sell only part of it. The company is on sale for $ 3.26 billion and the buyer will have to deal with large debts it has incurred, a $ 3.3 billion debt, including commitments to lease some of the aircraft. This debt was reduced from the 5.1 billion mentioned in the previous tender. The Indian government has raised the possibility that another airline will buy the company, but if such a case happens, a foreign company can only buy 49% of India Air.

Air India also operates in Israel and is the only airline to fly to and from Israel over the Arab states after receiving special permission. The company operates in the New Delhi-Tel Aviv line.

Air India has a fleet of 146 aircraft, 56 percent of which is wholly owned, more than most airlines, which could hamper the regeneration of the fleet. Many of the aircraft are old with high fuel consumption, and since November 2019, 16 aircraft are disabled, which is about 13 percent of the total fleet.

Source: israelhayom

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