Initial bids for AI stake sale to be invited soon

The government is committed to expediting the process of Air India's disinvestment and is likely to invite Expressions of Interest (EoIs) from interested parties in the next few weeks, an official said on Thursday.

Speaking at the inaugural ceremony of the four-day aviation event 'Wings India 2018', Civil Aviation Secretary R N Choubey said a revised EoI for disinvestment in Pawan Hans is also expected to be floated around the same time.

"Our ministry is presently engaged in the important task of finding buyers for Air India, its subsidiaries and Pawan Hans. We are committed to take it forward very fast," he said.

"We expect that the EoIs for Air India should come out possibly in the next couple of weeks. A revised EoI for Pawan Hans will also be coming forward around the same time," Choubey said.

Choubey said India's domestic air passenger traffic has grown over 20 per cent in the last three years. However, because of the increasing oil prices, the growth this fiscal is expected to be around 17.5 per cent.

Nevertheless, if oil prices remain below $80 per barrel, the travel demand is expected to grow at a compound annual growth rate (CAGR) of 15 per cent over the next 20 years, he said.

The government's regional air connectivity scheme 'Udan' has further boosted traffic growth in the country.