Date:05/12/2007 URL: http://www.thehindubusinessline.com/2007/12/05/stories/2007120556781000.htm

Back AI could enter market for divesting up to 15% equity by mid-08: Patel

Mr Praful Patel

Our Bureau

New Delhi, Dec. 4 Air India could enter the market to divest up to 15 per cent of its equity in mid-2008, the Minister for Civil Aviation, Mr Praful Patel, said on Tuesday.

Speaking to the media on the sidelines of the India Economic Summit, Mr Patel said that the Initial Public Offering (IPO) could happen if other procedural aspects were met.

“An advisor would have to be appointed, an Inter Ministerial Group would have to give its views and the Government would have to give their consent.

“At this moment, it would be difficult to give an exact time frame. There could be a 4-5 per cent stake for employees by way of employees stock options. Like with many other public sector companies where they have tapped the market, Air India could also look at it,” the Minister added.

On the issue of allowing other airlines abroad, Mr Patel said this was an issue being considered by the Group of Ministers.

“Kingfisher could be allowed to go abroad as Air Deccan completes five years of domestic operations next year and would, therefore, be entitled to operate internationally,” the Minister said.

Asked whether policy would be changed to allow international airlines to pick up stake in domestic airlines, Mr Patel said that this was something that could be considered at a later stage.

“We should ensure that domestic airlines scale up to international standards and look to acquire international airlines. Then, we could consider allowing international airlines into the domestic market,” the Minister said without specifying a timeframe for this to happen.