Air India is the airlines of India. It is owned by a government-owned enterprise, Air India Ltd. Air India operates and use its fleet of Airbus and Boeing aircraft to 94 international and national/domestic destinations. It was commenced on 29th of July in the year 1946. Founded by J.R.D. Tata as Tata Airlines in 1932. After WW II it was renamed as Air India.
The Civil Aviation Ministry of India is bidding the state-owned Airline, Air India. The Indian government is open to 76% of deposession of the nation’s airline.
In this auction for the air India divest the buyer would also acquire Air India subsidiary-Air India Limited Express, and along with this the buyer will own a 50% stake in the ground-hauling service Air India SATS.
The increasingly competitive India air sector has made the airlines i.e Air India struggle nowadays.
Low-cost carriers like Indigo, Jet Airways, Spicejet are larger and cheaper comparatively. As Air India has India’s fourth largest share of fliers, the solicitation shared the same information.
Air India is allowed to fly to five United States of America destinations. Soon Los Angeles, Houston and Dallas are the cities which are on list of Air India that will be added to its US services. As for now Air India is the country’s leading airlines with 18.6% share on the international flights, but faces tough competitions in the field from the Gulf airlines I.e Emirates and Ethihad and as well as from Jet Airways.
In fact the airline company Air India was in profits during the past two fiscal years but there was no decrease in there substantial debts.
The requirements for bidding set by the Aviation Ministry are as follows :-
The minimum net worth of bidders for the airlines at 5 billion rupees ( $767.5 million ).
The bidder or the bidding companies have been profitable in at least three of the past five fiscal years, this requirement is for non Indian companies, as the Indian airlines are the part of a consortium in which their share in not more than 51%.
Companies like Jet Airways, Delta and Air France-KLM have shown interest in acquiring Air India. The confirmation hasn’t came yet. This was described in report prepared by Times of India in the month of march.
From above mentioned interested companies Jet Airways could benefit the 2nd exception clause, as the respective company had a negative and down the chart net worth in its 2017 financial report.