Air India disinvestment: Why the airline may now appeal more to investors

With Jet Airways, one of its key competitors among FSCs closing operations, there are several upsides that should make Air India more attractive for strategic investors than it was earlier

State-owned air carrier Air India, which has had little success in enthusing strategic investors so far, might now begin to appear attractive. Why? The reason is simple: Jet Airways, one of Air India’s key competitors among full service carriers (FSCs), in both domestic and international space, has closed operations. The planes of debt-strapped Jet are being taken away by lessors and its lenders are making last-ditch efforts to get a buyer — they are in talks with the Hindujas — before the airline’s case is referred to the National Company Law Tribunal (NCLT).

Even if Jet Airways were to revive,