Air India: Why Government Will Start Bidding Of Airlines

You know that Indian Airlines is one of the biggest airlines. Air India is currently facing the problem of revenue lost. Government is not able to come out of this situation. They provide the package to support the Airlines but that is not helpful for the renovation of this organization. 

The government may change the selling strategy.

The government may advise adding the foreign companies with Indian to purchase the airlines as the joint venture. 

The government wants to add more and more foreign companies during the bidding of Indian Airlines. The main reason to collect more money from this bidding.

The government agreed on the joint venture of local and foreign companies to participate in tender under the terms condition of Indian rules. 

Foreign companies will be authorized 49% of the market stake. Airline's ministry has sent this offer to Air India ministry.

Which Companies Are Interested In Airlines Bidding -

Tata and Indigo airlines are interested to participate in this bidding. The changing rules may increase competition among companies. 

Both are very big companies in India. The interest of investment is higher.

What Is The Reason Of Airlines Bidding -

The government of India knows that the package provision is not a good way to renovate Indian Airlines. 

A professional working environment is needed for Airlines. The best way to privatize this and involve the participation of foreign investor on the term condition of the “Make In India” concept. 

That will be helpful to increase the strength of the economy of India as well as generate employment for the young generation too.

Another main reason for bidding is that Indian Airlines is continuing with the heavy loan. The company run with 48877 Crore loan amount. 17360 Crore loan on Airlines purchasing. 31517 Crore loan of working capital.

Airlines, India, Bidding, Earnest & Young, Foreign, Stake, Companies
Indian Airlines Renovation Required

What Is The Best Renovation Process For Airlines -

The best process has been adopted by the government to provide the 49% stake to foreign companies. This will be helpful to stop the complete authorization of foreign companies on the renovation project.

The government has requested from Earnest & Young to fast the selling process. 

The form has demonstrated a presentation in the Airlines Ministry. They appreciated the presentation.

What Two Changes Are Required In Airlines -

It is very important to change the rules of bidding when they will add foreign companies. 

Industrialization process should be modified because present rules stop the participation of foreign companies.

Actually, the foreign Airlines companies always give the preference to local airways. If Air India tie-up with foreign airlines then rules will be changed.

What Is The Final Conclusion -

This decision will be finalized on the basis of the committee report. 

So, let’s see what happen in the coming future. But renovation is the requirement of Airlines.

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