Published: Fri, March 30, 2018
Global | By Craig Ferguson

Israel's Carrier Goes to Court Over Air India's Flights Through Saudi Airspace

Israel's Carrier Goes to Court Over Air India's Flights Through Saudi Airspace

In January, during a meeting of the panel, most members had sought the withdrawal of the draft report which said that it was not an appropriate time to divest stake in Air India and that the airline should be given at least five years to revive. "The passengers were offloaded to carry out the security drills", Deputy Commissioner of Police Sanjay Bhatia said.

The process is being monitored by Air India-Specific Alternative Mechanism headed by Finance Minister Arun Jaitley.

A successful sale of Air India, which is surviving on taxpayer-funded bailouts, is seen as test case for Modi to burnish his credentials as a reformist attempting to steer the state away from running businesses and boost spending on health and education.

The relevance of 24 per cent of the share is that it doesn't give the government right to veto decisions, said Bhargava.

On offer is a 76% stake in Air India Ltd, 100% stake in Air India Express Ltd and a 50% stake in Air India SATS Airport Services Ltd. After all, in the Preliminary Information Memorandum, Air India and its subsidiaries have committed to pay these arrears "before consummation of the Proposed Transaction".

India's leading airline IndiGo stressed on Thursday that it was keen to. The existing debt and liabilities of Air India and Air India Express as on March 31, 2017 would be re-allocated. Air India employees have also been permitted to participate as bidders either directly or by formation of an "employee consortium" subject to relevant conditions. Saudi Arabia permitted Air India to use its airspace, enabling it to take a shorter route, covering the distance in 7.25 hours, about 2.10 hours less as compared to the only other airline that flies between the two countries - El Al. The government must lose no time in enabling that, while being open to even restructuring or reducing the airline's debts to make it an attractive buy.

However, Indigo's state-owned rival has a 16.9 percent share of the global travel market in India. What happens on 28th May, when qualified interested bidders are invited to the second stage of bidding is anyone's guess.

Like this: