Air India Privatization

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Dec 31, 2019 | 2:47 am

#31

ameyam

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Quote:

Originally Posted by oliver2002

Vistara and Air Asia India are prime examples on how a foreign airline can get a 'foothold' in India with a local partner. No need to buy a legacy airline with plenty of skeletons in the cupboard and super complex political entaglements. Any sane airline would nottouch AI with a 20 mile long pole. Look at an example of a European airline that gets capital injections from their govt every 6 months and stays afloat: https://www.flyertalk.com/forum/alit...tion-plan.html

It's a 100% stake sale (without the debt assuming the Govt is taking care of it), so the argument on political interference is weak. Yes, there are efficiency issues, layoffs will need to happen but from a business potential point of view, AI has some good landing rights, good routes, i think a profitable international business, so why wouldn't this be interesting to US based airlines? They would never get this opportunity in China! Shouldn't this be their strategy to beat Emirates and other ME carriers?

Dec 31, 2019 | 6:12 am

#32

PiperAtGatesofDawn

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Quote:

Originally Posted by ameyam

I would love to hear nuanced views on why US based airlines esp. UA wouldn't be interested in buying AI out to get a foothold in the 3rd largest and seriously growing aviation market.

For UA particularly it would be challenging because their policy of beating passengers might backfire here because the pax is a brother of a sister-in-law of a uncle of a neighbour of a MP.

Also I'm not sure about being the "3rd largest" aviation market by any meaningful measure. Aviation in India is a horribly immature and under-served.

And the biggest problem with the Indian market is costs. So a US company could never come and become successful here even by starting sometime new... maybe the Chinese could....

But why would anyone want to buy AI. That's a whole unless you're a masochist who wants to set burn all their wealth but wants to do it in a spectacularly dumb fashion.

Dec 31, 2019 | 6:23 am

#33

PiperAtGatesofDawn

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Quote:

Originally Posted by ameyam

It's a 100% stake sale (without the debt assuming the Govt is taking care of it), so the argument on political interference is weak. Yes, there are efficiency issues, layoffs will need to happen

You just answered the question about political influence.... layoffs.... so there will be huge amount of political influence in this.

Also, massive debt, huge inefficiencies that will require massive investments in IT and equipment etc. etc. etc...

Jan 6, 2020 | 9:13 am

#34

oliver2002

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Quote:

"Air India's financially and operational condition is being appropriately dealt with without compromising on our service levels," she added.

https://economictimes.indiatimes.com...w/73125731.cms

Jan 6, 2020 | 10:09 am

#35

GUWonder

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Quote:

Originally Posted by ameyam

Seems to me that the process to sell AI is serious this time around. The roadshows seem to have a tepid response though. (https://economictimes.indiatimes.com...w/72931261.cms). I am not sure if this is really the case.

I would love to hear nuanced views on why US based airlines esp. UA wouldn't be interested in buying AI out to get a foothold in the 3rd largest and seriously growing aviation market.

AI sounds like an awesome long-term investment to lose money. Want to make money in a long-term position with AI upon a floating of its equity? Then short it for the long term.

Jul 9, 2020 | 5:17 am

#36

oliver2002

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It seems Tata is the only one left in bidding for NACIL... why do they even want to dabble in this mess?

Jul 9, 2020 | 5:19 am

#37

SuperFlyBoy

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Quote:

Originally Posted by oliver2002

It seems Tata is the only one left in bidding for NACIL... why do they even want to dabble in this mess?

They want their company back.

Jul 9, 2020 | 7:23 am

#38

PiperAtGatesofDawn

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(Clearing my throat.... in Dharmendra's voice).... "Suicide.... succcciiiiidddeeeeee"

Aug 26, 2020 | 3:31 am

#39

oliver2002

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Since no more bidders showed up in the last three extensions, the deadline was now extended to end of October 2020.

https://economictimes.indiatimes.com...w/77745434.cms

Aug 26, 2020 | 3:42 am

#40

Keyser

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Quote:

Originally Posted by oliver2002

Since no more bidders showed up in the last three extensions, the deadline was now extended to end of October 2020.

https://economictimes.indiatimes.com...w/77745434.cms

they can keep extending it all they want....they won't get any bids besides tata....at some point even tata will give up....

Aug 26, 2020 | 3:56 am

#41

PiperAtGatesofDawn

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Quote:

Originally Posted by Keyser

they can keep extending it all they want....they won't get any bids besides tata....at some point even tata will give up....

According to the article the Tatas haven't put in a formal bid yet.

The govt. will keep extending it till it becomes someone else's problem. Then rinse and repeat.

Aug 26, 2020 | 4:25 am

#42

Keyser

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Quote:

Originally Posted by PiperAtGatesofDawn

According to the article the Tatas haven't put in a formal bid yet.

The govt. will keep extending it till it becomes someone else's problem. Then rinse and repeat.

not according to this article but i'm pretty sure i remember reading somewhere that tata had put in a bid....