Govt extends deadline for Air India bid for fourth time

Considering the COVID-19 situation, the central government on Tuesday extended the deadline to submit bid documents for Air India by two months to October 31. The earlier deadline to submit expressions of interest for the national carrier was August 31.

New Delhi: The government on Tuesday extended the deadline to submit bid documents for Air India by two months to 31 October in view of the prevailing situation arising out of Covid-19.

The earlier deadline to submit expressions of interest for the national carrier was August 31. This is the fourth time that deadline has been extended.

"The above changes are as per the requests received from the IBs (interested bidders) in view of the prevailing situation arising out of COVID-19," the department of investment and public asset management (DIPAM) that falls under the Finance Ministry said in a statement.

Issuing a corrigendum to the Expression of Interest for sale of Air India, the DIPAM also stated that the deadline for intimation to qualified interest bidders (QIB) has been extended to November 20 from September 14.

The aviation sector has been hit hard by coronavirus pandemic with airlines cancelling international flights and announcing pay cuts for employees.

The government had in January invited preliminary bids to divest its entire stake in Air India and the airline's subsidiary Air India Express along with its joint venture Air India SATS Airports Services Private Limited.

Of the airline's total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286 crore, while the rest would be transferred to Air India Assets Holding Lyd (AIAHL).

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