|
THE
BIDDERS
 |
| 1. Venugopal
Dhoot, 2. Air France Delta Korean Air Aero Mexico, 3. S.P. Hinduja,
4. S.P. Verma, 5. Ratan Tata and 6. L.N. Mittal |
1.
Videocon International
The Rs 4,000-crore group is the only one bidding
solely for ia. Plans to add 45 planes, cut fares by 30% and list ia on
nyse. Has the backing of Boston Bank and is talking to two Asian airlines.
2. Skyteam
Alliance
The
SkyTeam’s trump cards are Delta and Air France—the world’s largest and
third largest airlines. Air France has a code share arrangement with ai
while Delta operates flights out of Mumbai.
3. Ashok
Leyland
Backed
by the deep pockets of the multi-billion dollar Hinduja Group, Leyland’s
bid for ai and ia is surprising. The group had jointly promoted a cargo
airline with ai and Lufthansa.
4. Indian
Pilots' Guild
Pilots
of ai are promising the moon: tripling revenue, quadrupling operating
profits and doubling the fleet in five years. But betting on AI employees’
provident fund could be tricky.
5. Tata
Sons
With
a pledge to “restore, redeem and salvage the Maharaja’s pride”, the Rs
35,900-crore Tata Group hopes to get back ai after four decades. By taking
stake in ia it attempts to erase the fiasco of the Tata Singapore Airlines
project.
6. L.N.Mittal
Group
The
steel magnate brings in his globally proven turnaround expertise to the
two airlines. Has Kotak Mahindra as main Indian partner and British Airways
and Qantas as technical and strategic advisers. The group’s sales will
top $6 billion in 2000.
The
Jackpot
Indian
Airlines
Stake
on offer: 26% Employees: 22,000 Aircraft: 56; Destinations: 79 Share of
domestic traffic: 50% 1999-2000 profits: Rs 43 crore Equity capital: Rs
105 crore
Air-India
Stake
on offer: 40% Employees: 17,690 Aircraft: 23; Destinations: 25 Share of
India’s global traffic: 21% 1999-2000 losses: Rs 376 crore Equity capital:
Rs 153 crore
Flight
Paths
 The
remaining stops in the privatisation journey
1.
Evaluation of Expression of Interest (preliminary bid) filed.
2.
Short-listed bidders to be allowed access to exclusive information on
the two airlines to help prepare due diligence reports.
3.
Bidders to be asked for their business plan for the airlines (e.g. details
of their investment plans, including fleet expansion).
4. Government
to prepare a shareholder agreement specifying strategic partner’s rights
and obligations.
5.
Bidders to be asked to quote a price for the airline they are bidding
for.
6.
The strategic partner is selected and the final shareholder agreement
is signed (after its clearance by the Cabinet).
7.
Equity sale to employees, public and financial institutions (20% in AI
and 25% in IA) begins. The process to be completed by July 2000.
|
The
Indian industry has increased its decibel level of whining. Instead, it
should get the government to deliver, says INDIA TODAY Associate Editor
V. Shankar Aiyar in 
