Air India planning 15% sell-off
India's national air carrier Air India plans to sell 15 percent of its business in an initial public offering to raise money to fund plane purchases and to spur future growth, the country's aviation minister said Tuesday at an economic forum in Mumbai.
“We would like to see a 10 to 15 percent disinvestment from current ownership,” said Praful Patel from the sidelines of the India Economic Summit, Reuters and other news outlets reported. “Air India certainly needs more capital infusion for current asset acquisition requirements and for future growth.'
Patel didn't set a timeline for the IPO.
The state-run carrier has had an interesting year, merging with domestic national carrier Indian Airlines and posting sizable losses due to what it called heavy fuel and operational expenses. Also hurting the airline's bottom line is an order for 68 Boeing planes to replenish its aging fleet. Combined with Indian Airlines, the merged entity has 111 planes on order.