The Preliminary Information Memorandum for the sale of Air India Transport Services Limited (AITSL), a subsidiary of Air India, is likely to be issued within the next 10 days, said a senior government official on Wednesday.
However, with the general elections due by May this year, there is a possibility that the AITSL’s divestment can be completed only after the Lok Sabha elections are announced and the moral code of conduct is in order.
Industry analysts indicated that if this is the case, the government can seek the opinion of the Election Commission or the Law Ministry but only if there is enough interest in the AITSL.
Divestment
The government cleared the divestment of the AITSL in November last year and at that time, expected to complete the process of selling the AITSL by end of March next year.
The funds raised from the sale will be used for settling a part of Air India’s debt.
In November last year, soon after the government cleared the divestment of AITSL, Turkey-based Celebi Aviation Holding and the Bird Group confirmed to BusinessLine that they will bid for the AITSL.
According to sources, the government will look to intervene in the cash-strapped Jet Airways only if there is a question of Foreign Direct Investment norms or the issue of Substantial Ownership and Effective Control remains in India as stipulated by Indian law.
The government, however, would like the airline to remain functional as “more competition is good for passengers and the market,” sources indicated.
Meanwhile, Hindon — the second airport on the outskirts of Delhi — will become operational by March this year, said officials. It will be used to operate flights under the government’s regional air connectivity scheme UDAN (Ude Desh ka Aam Naagrik).
The airport will be able to handle aircrafts which carry less than 80 passengers. Hindon will be used to connect various cities including Kannur and Hubli.