No Decision Yet On Date For Air India IPO

New Delhi: India has not yet decided when it will launch an initial public offering in state-run Air India, and will fix a date based on the financial performance of the carrier, a government official said on Tuesday.

The government had earlier said it would sell up to 15 per cent of Air India and use the funds for expansion.

"No decision has been taken yet," Civil Aviation Secretary Ashok Chawla told reporters on the sidelines of an industry conference.

"We will have to take a view on when to consider having the IPO based on the performance (of Air India), which will require the approval of the cabinet," he said.

Chawla declined to say how much the government expects to raise from the offering.

In August, Air India merged with state-run Indian Airlines to form the National Aviation Company of India Ltd. The combined fleet of 112 planes fly on the Air India brand and has on order another 111 Boeing and Airbus planes.

The stand-alone Air India posted a loss of Rs 448 crore ($110 million) in 2006/07, according to a statement made by Civil Aviation Minister Praful Patel in Parliament on March 3.

Indian Airlines figures for the same period were not available, but in November the Minister told Parliament that the airline had posted profits for the three preceding years.

Air India IPO Only After Performance Review

New Delhi: The initial public offering (IPO) of the national carrier Air India would be floated only after a performance evaluation, Civil Aviation Secretary Ashok Chawla said Tuesday

"We would initially look at the performance of Air India before coming up with an IPO. It will come up at an appropriate time," said Chawla here.

According to him, the public issue would come only after the merger of the government-owned airlines, Air India and Indian Airlines, was complete. The merger is expected to be complete by March 2009.

The government is also sceptical about the volatility of the stock market.

Chawla said the government was not rethinking or deferring the IPO. "There is no question of deferring the IPO at this moment," he pointed out.

The merger of the two airlines was initiated in July 2007. The government indicated a time frame of one to one-and-a-half year for completing the process.

Air India IPO Likely In Second Half Of '08: Patel

NEW DELHI: The government is planning to divest 10% to 15% stake in Air India through a public issue in the second half of 2008. The IPO for the public sector airline has been delayed due to the merger of Air India with Indian to form National Aviation Company (NACL).

Speaking at a meeting here on Friday to announce the launch of India aviation 2008, the first-ever civil aviation air show in the country, civil aviation minister Praful Patel said the government was keen to list Air India and raise funds for expansion of the company.

Mr Patel said the government plans to revive 300 airstrips which are not in operation now. The move is expected to provide connectivity to semi-urban areas and also help corporate houses who are keen to develop supply chain for their retail operations.

The airshow announced by Mr Patel is scheduled to take place in October this year in Hyderabad.
The civil aviation minister said revival of unused airstrips would be taken up along with other issues like lowering cost of fuel through tax reductions.

“We would meet the state representatives next week and discuss issues such as sales tax on aviation turbine fuel (ATF) and aviation infrastructure. We would also discuss how unused airstrips can be turned into operational one by engaging private players,” Mr Patel said.

The minister expressed the hope that sea-planes would enter the Indian aviation scenario this year. “If a small country like Maldives can have 25-30 sea-planes connecting small islands, why can’t it operate in India which has a vast sea coast.”