New Delhi: The Transaction Adviser (TA) for the Air India privatisation bid process, Ernst and Young (EY), has, according to media reports, submitted its report to the government on why potential bidders did not respond favourably to the move.
Apparently, it includes the fact that the government had not offered 100 per cent stake in the sale process. The issue of continuation of the airline’s current workforce was also mentioned.
Sources had earlier said the government had taken measures to protect the workforce of the airline financially in the event of a private management taking over but as things have turned out, this was probably viewed unfavourably by potential bidders. It had also offered 76 per cent stake in Air India.
Meanwhile, according to news agency reports on Wednesday, the government is also considering listing of Air India. According to these reports, listing of Air India would help in “garnering revenues”.
The possible move could also be seen as one to ensure transparency and accountability in the functioning of the airline if it eventually moves into private hands.
The government is now expected to analyse what needs to be done in view of the suggestions in the TA’s report. This follows the shock to the government and the huge setback to the privatisation process for Air India wherein no initial bids were received from bidders for acquisition of stake in Air India.
