India mulls Air India listing

The government is open to listing Air India, after failing to attract buyers for a 76 per cent stake in the company, according to sources.

While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said. Selling shares through an initial public offering will help shore up cash to fund the operations of the state-owned airline, the source on Wednesday.

A Group of Ministers will meet shortly to consider possible options for a stake sale, the official said, adding that the idea of foreign ownership of Air India is not on the cards.

The government looks at retaining a share in the debt-laden carrier and selling it at a later date so it can capitalise on any financial upside that may occur from listing the airline, according to the source.

The government may also consider reducing the debt it passes on to potential buyers and restructuring the large workforce.