CAPA says 4-6 bidders have shown interest in Air India

The much awaited divestment of Air India has seen interest from up to six players, said Kapil Kaul, CEO & Director, South Asia, CAPA.

"We see four Indian players, Jet Airways, IndiGo, SpiceJet and Vistara as interested parties to buy the stake in Air India," said Kaul while addressing a summit on aviation here.

He added that two non-aviation companies are also looking to present bids, but that might depend on the funding they receive. "These companies are looking for partners for funding," said Kaul.

The bidders will be short listed in four weeks. Kaul expects the whole divestment process to get over by July.

The CAPA senior executive underlined that any bid might need a big source of funding, especially if Air India is valued at USD 4-5 billion.

"Except IndiGo, don't know where the funding is going to come from in the case of other players," said Kaul.

Responding to a question, Kaul said that it's a positive that Air India's low cost long haul carrier Air India Express has been included in the deal. "Air India Express is a strong asset," he said.

In an interview with Moneycontrol earlier this month, minister of state for civil aviation Jayant Sinha said that the government was open to retaining a minority stake in Air India.

Sinha said the stake sale by the government should not take more than six to eight months with the legal closing and transfer of assets taking another few months.