Air India which is owned by the government, the country has been looking to privatise the airline for a while now, but haven’t managed to sell it off that easy and now the deadline to submit bids has been pushed back by 2 months to the 31st of August.
The sale would comprise –
- 100% stake in Air India
- 100% stake in Air India Express
- 50% stake in Air India SATS Airport Services
Like many state-owned carriers in the region, Air India was no stranger to being in debt for several years.
Source: Air India
However, Air India isn’t a right off completely. It has some valuable real estate all across the world that could benefit potential suitors. They have several valuable slots at some high-profile airports like London Heathrow, its modern fleet with a fairly young age of around 8 years and its hub in a high growth market in India. Plus the Civil Aviation Minister believes Air India to be a “first-class asset”
That said, many Full-Service Carriers in India even the private carriers haven’t really been able to make money. We’ve seen Ambitious King Fisher go bust and more recently Indian stalwart Jet Airways collapse (the airline is also trying to find potential suitors)
Vistara on the other hand seems to be doing relatively well but it’s a fairly new entity.
Source: The Print
Moving on to Low-cost carriers, they’ve managed to dominate the Indian market. Market leaders Indigo and SpiceJet have been profitable and expanding their network through the years.
That said, the market forces currently are unknown. It’ll be interesting to see how the Indian market would be post-COVID-19.
Source: Economic Times & Cirium
Hope you enjoyed it!
“When Borders Don’t Matter”
Final Year Aviation Management Student at Coventry University.