New Delhi: The government on Saturday extended the deadline to submit bid documents for Air India by two months to 31 August.
The earlier deadline to submit expressions of interest for the national carrier was June 30. This is the third 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 September 14 from July 14.
The aviation sector has been hit hard by Coronavirus pandemic with airlines cancelling international flights and Al 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).
Addressing a webinar on Friday, Kapil Kaul, Chief Executive Officer and Director, CAPA India had said that the government needs to keep plan B ready for the divestment of Air India, especially in the post COVID-19 situation.
While explaining plan B, he said, "How do I make the airline smarter? Do I need to get professional management? Can I redesign the company and reduce costs? These are the things that the government should look to do meanwhile."
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