209 AI staff team up to bid for national carrier

New Delhi

Air India employees are preparing to bid for the national carrier in partnership with a private equity fund and each employee will be asked to contribute Rs 1 lakh towards the bid. The bid process is being led by Meenakshi Mallik, Commercial Director, Air India.

“The PIM, thankfully, made it possible for the employees of Air India to take charge and ownership of the airline, and to this end, provides various terms and conditions which need to be fulfilled, and which we intend to collectively achieve and satisfy,” said Mallik in a letter to Team Members of Air India. The last date for the bids is December 14.

“Broadly, the project itself entails participating in a bid process along with all other participants who wish to take charge and ownership of AI and its assets. If the media reports are true, we will be bidding against, presumably, some of the largest corporate houses in India who will be just as keen and interested in the airline and bid,” Mallik said.

“Financially, I know that we do not have the necessary wherewithal to participate in this bid process alone. We have accordingly searched out for and sought to secure the support of a private equity fund who will invest in the company with us and share the benefit. We are negotiating with our financial partner such that our Employee – Management Consortium will collectively own and control 51 per cent (i.e. majority) of our Airline. The financial partner will hold the balance 49 pc of the Company”, she added, noting that documents to support its intent and capability would be submitted as need be.