CAPA India: Fresh attempt at divestment of Air India likely to attract significant interest

CAPA India welcomed (31-Jul-2019) the Indian Government's decision to resume efforts to divest its stake in Air India by the end of FY2019/2020, following a failed attempt in 2018. In a report entitled: 'Divestment of Air India: Revisiting Key Success Factors', CAPA India stated this fresh attempt at privatisation is likely to attract significant interest, including the possibility of major global airlines partnering with large Indian conglomerates to participate in the tender process. If India's Government proceeds with plans to commence the tender process in Aug-2019, selection of a priority negotiation rights holder for Air India by the end of 2019 is feasible, although bidders should be given sufficient time to conduct appropriate due diligence. CAPA India noted the Apr-2019 suspension of operations by Jet Airways, previously Air India's largest full service competitor, increases the likelihood of success at divestment this time around. [more - original PR]