SIA withdraws bid for stake in Air India<\/p>\n
NEW DELHI (AFP): Singapore Airlines (SIA) has withdrawn its
\nbid for a stake in state-run Air India, one of several national
\nfirms earmarked for privatization, a report said Saturday.<\/p>\n
SIA was part of a consortium with India's Tata business group
\nwhich was bidding for a 40 percent slice of the international
\ncarrier.<\/p>\n
Indian Disinvestment (privatization) Secretary Pradeep Baijal
\ntold the Press Trust of India that SIA had bowed out.<\/p>\n
\"The delay in disinvestment very often leads to withdrawal of
\nforeign investors. This was a very good opportunity and I feel
\nsorry that SIA, a very good airline, has withdrawn,\" PTI quoted
\nBaijal as saying.<\/p>\n
The Tata-SIA consortium was the only bidder left for the Air
\nIndia stake, after about five others pulled out on their own or
\nwere disqualified under criteria set by the Indian government.<\/p>\n
PTI said Tata chief Ratan Tata Saturday sent a letter to
\nDisinvestment Minister Arun Shourie saying the group would
\n\"review the situation in the light of withdrawal of SIA from the
\nconsortium\".<\/p>\n
An SIA spokeswoman declined to comment on the report.
\n\"We will make an announcement when we have something to
\nannounce,\" she told AFP in Singapore.<\/p>\n
The latest development is a blow to the government's aim to
\nsell off a 60 percent stake in Air India. New Delhi plans to sell
\n40 percent of the equity to a strategic investor, including a
\nmaximum 26 percent stake to a foreign airline.<\/p>\n
Another 20 percent will be sold to Air India employees and
\nfinancial institutions.<\/p>\n
India's aviation laws state that an international airline
\nbased here is entitled to routes under aviation treaties only if
\nit is substantially owned or controlled by Indian nationals.<\/p>\n
Air India is India's main international airline and entitled
\nto a large number of flights to different countries because of
\nits status as the national flag carrier.<\/p>\n
However, lack of funds has kept the airline's fleet from
\ngrowing and using all the routes.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sia-withdraws-bid-for-stake-in-air-india-1447893297",
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