Indian government seeks expressions of interest in sale of flag carrier Air India

The government of India has announced it is seeking interest from investors, following approval for the divestment of flag-carrier Air India, the government said.

The divestment includes the entire share capital along with the whole of Air India Express and 50% of its handling joint venture AISATS.

Financial services specialist EY has been appointed to advise and manage the proposed transaction.

India sets out the proposed reallocation of debt and liabilities from the date that any divestment transaction closes. The document says the debt to be retained in Air India and Air India Express will remain at Rp 232.86 billion. There will be no reallocation of debt and liabilities of AISATS.

Air India has interests in other entities, including its engineering services division, all of which are being transferred to a separate company — Air India Assets Holding — and will not be part of the divestment.