Jet Air India

Sales Air India: Jet Airways has now decided to exit the divestment of Air India | India Business News

However, the ambitions of the company's strategy to participate in the divestiture of the loss-making Air India and its two subsidiary companies seem to be going up in smoke, with the two prospective tenderers having decided not to follow the outlines of the auction procedure. At the beginning of the divestment phase, the authorities published a draft information note outlining a plan to acquire up to 76 percent of the shares in Air India and to delegate executive oversight to individuals.

"to privatize Air India. Amit Agarwal, Deputy CEO and CFO of Jet Airways, said in a statement sent by e-mail to PTI: "Given the conditions of the offering in the Information Note and on the basis of our verification, we are not entering the trial. It did not, however, disclose any concrete reasons for the choice not to take part in the share sales procedure.

According to last month's source, a syndicate of Jet Airways, Air France-KLM and Delta Airlines had indicated interest in disinvesting Air India. Today's Naresh Goyal-led Jet Airways announcement comes less than a weeks after IndiGo, the no-frills airline, abandoned its plan to take over Air India's global activities.

IndiGo President and Full-time Director Aditya Ghosh said on April 5 that from the very first date the company had shown interest in taking over the overseas activities of Air India and Air India Express. "These options are, however, not available under the government's present divestment plan for Air India.

In addition, as we have previously stated, we do not believe that we are in a position to take on the role of taking over and successfully implementing all of Air India's activities," he had said in a declaration. India's IndiGo was the first company to express interest in Air India's divestment when the US administration discussed the plans last year.

Pursuant to the agreement published on 28 March, the authorities would keep 24 per-cent of the national company and the winner would be obliged to remain in the company for at least three years. This divestiture would involve Air India Express and the Air India Express JV AISATS.

Air India's and Air India Express's debts and payables as at 31 March 2017 will be reallocated in accordance with the MEMO. "AI and AIXL are expecting to retain the debts and payables, which include Rupees 88,160 million of net outstanding capital stock, amounting to Rupees 3,33,920 million (no changes at AI-SATS other than in the ordinary course of business).

"Remaining indebtedness will be assigned to Air India Asset Holding Limited, which is wholly owned US Dollar, pending obtaining the necessary permits from creditors and regulatory authorities where applicable", the MoU states. Air India and Air India Express retain the contingencies. As part of the contingencies, Air India would retain revenue taxes, duties and services taxes and warranty fees/penalties due to the state.

According to the MoU, there would be a "state obligation to make it good/compensate if the obligations to Air India are confirmed". As part of the turn-around programme adopted by the former UPA in 2012, the domestic airline will retain its tax revenues.