Question : Disinvestment of Air India

(a) whether the Government has given in principle approval for strategic disinvestment of Air India and its five subsidiaries and if so, to what extent (in terms of stake), and the proposed timeframe for the same;

(b) whether the Government would retain any share in the stake, if so, the details thereof;

(c) the details of the proposed universe of bidders for the divestment;

(d) whether any guidelines have been prepared related to the treatment of Air India’s assets and liabilities and the measures taken to safeguard the interest of employees of Air India;

(e) the procedure adopted by the Government to handle the real assets including the land and properties associated with Air India;

(f) the companies that have come forward or expressed interest to buy Air India’s flight operations, both domestic and international services; and

(g) whether the Government proposes to split Air India into four entities and offer majority of equity as part of disinvestment plan and if so, the details thereof?

The Minister of State in the Ministry of CIVIL AVIATION
(Shri Jayant Sinha)

(a) to (e) : The Cabinet Committee on Economic Affairs (CCEA), in its meeting held on 28.06.2017, has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries. CCEA constituted an Air India Specific Alternative Mechanism (AISAM) to guide the process on strategic disinvestment from time to time and decide issues which, inter-alia, include hiving off of certain assets to a shell company, the entities offered for sale during the bidding process, the quantum of disinvestment, and the universe of bidders.

(f): The draft Expression of Interest (EOI) document inviting proposals for disinvestment of Air India is yet to be finalised by the AISAM and issued. Formal proposals from prospective bidders would be received thereafter only. Any unsolicited Expressions of Interest at this stage are not relevant.
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(g): The reply from (a) to (e) may please be referred to.