The Indian Pilots' Guild (IPG) has asked the minister of disinvestment that the selloff of Hotel Corporation of India (HCI) should be a part of the Air India (AI) divestment package.
IPG, in a letter to the minister for disinvestment, said that the Air India turnaround strategy will energise all profit centres including HCI.
"Hence, HCI should not be sold now," IPG officials in a press statement said here today. HCI is a wholly owned subsidiary of Air India.
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IPG believes that the timing of the disinvestment is inappropriate since expressions of interest for an equity stake in Air India has already been invited by the merchant banker JM Morgan Stanley.
It is logical that the new investor in Air India takes the decision to disinvest HCI together with its strategic partner, in view of the long-term implications of this move.
The Indian Pilot's Guild is a serious bidder for the equity stake in Air India and the association thinks that the proposal to disinvest HCI is premature and would adversely impact the valuation of the airline, IPG said in its letter to the union minister.
The loss to Air India, on account of a fall in valuation at this stage through the disinvestment in HCI would be far greater that the gains via funds being received from sale of HCI properties at hotel room valuation rates.
HCI is a profitable corporation and is likely to fetch good valuations in view of the excellent locations of its properties.