Aviation

Government seeks bids to sell 76% stake in Air India

Air India adds more flights to Dubai from Delhi and Mumbai

NEW DELHI: According to Times India Statement : Sixty-five years after Tata Group-founded Air India (AI) was nationalised, the government on Wednesday offered to sell 76% stake in AI to private bidders and effectively exit the airline business. Of AI’s total debt of Rs 50,000 crore, bidders for airline arm — AI, AI Express and AI-SATS (airport service company) — will have to take over debt of Rs 24,576 crore and liabilities of Rs 8,816 crore. The airline arm is being offered for sale first. TOI had first reported on March 6 that divestment of AI will begin with the airline arm being hived off first.

The iconic Nariman Point headquarters will not be associated with the “new AI” and only the central Delhi HQ at Airlines House will be given to the successful bidder to use for “two years or more”, while the ownership will remain with the government. Among “core real estate”, the bidder will get 21.8 acres hangar space at Delhi and Mumbai airports, said senior officials.

According to the preliminary information memorandum (PIM) issued on Wednesday, bidders need to have a minimum net worth of Rs 5,000 crore. Indian carriers with negative net worth, including all except IndiGo, will be considered to have zero net worth and can bid for the Maharaja, if they tie up with someone that can take the combined net worth to the required amount. This paves the way for an Indian carrier to tie up with a strong international player. Tata Sons-Singapore Airlines, IndiGo and an unidentified foreign player have already expressed interest in AI. Jet Airways was also waiting for the bid documents to decide on its next move and Qatar Airways wants to start an airline in India. They may also join the fray.

The successful bidder, expected to be finalised by September-end, will have to retain AI brand name for a specific period, which will be spelt out in the request for proposal. But a condition that AI has to be run on an “arm’s length basis” for at least three years, when it cannot be merged with any other entity and would need to maintain its identity as a separate airline, effectively means that the brand will have to be retained for at least that long.

The employees will need to be retained for at least a year. The government will carve out Esops from the 24% equity it will keep. Employees have also been allowed to participate in the bidding process, either directly or by creating a consortium.

Aviation

India Launches Its Medium-Lift Class Helicopter Program, chooses New Engine

India’s longstanding need for a Medium Helicopter may soon become a reality as the country has fully ramped up its engine development efforts. This new helicopter is set to replace the Russian-built models currently in service and will play a crucial role across various scenarios for the Indian Armed Forces.

Hindustan Aeronautics Limited (HAL) and SAFHAL Helicopter Engines Pvt. Ltd. (SAFHAL) have launched a groundbreaking partnership to develop a state-of-the-art high-power engine named Aravalli.

This new engine will power the upcoming 13-ton Medium Lift Helicopter (IMRH) and the Deck-Based Multi-Role Helicopter (DBMRH), both of which are being designed and developed by HAL.

Named after the majestic Aravalli mountain range in India, the Aravalli engine symbolizes the country’s drive for self-reliance, or Aatmanirbharta, in critical engine technologies. This cutting-edge engine will be instrumental for the IMRH, a versatile 13-ton multi-role helicopter designed to meet the needs of the Indian armed forces, and the DBMRH, a 12.5-ton naval variant tailored for the Indian Navy.

The IMRH is poised to become a cornerstone of the Indian armed forces over the next decade. With its first flight expected in 3 to 4 years, the IMRH is anticipated to begin induction by 2030, with plans to integrate between 300 to 400 units, and potentially more in the future.

The IMRH is envisioned as a highly versatile multi-role helicopter that will enhance the operational capabilities of the Indian military. The DBMRH, designed for naval operations, will also face the challenges of high-altitude environments in regions such as Ladakh, Sikkim, and Arunachal Pradesh—areas of strategic importance due to their proximity to the China border.

In addition to its military applications, the Aravalli engine is projected to enter the civil market, serving roles in offshore operations, utility services, and VVIP transport. The long-term vision includes Maintenance, Repair, and Overhaul (MRO) activities to further extend the engine’s utility and support the aviation industry.

This collaboration between HAL and SAFHAL builds on their successful history of working together on the Shakti engine, which powers several HAL helicopters, including the Advanced Light Helicopter Dhruv, the Light Combat Helicopter Prachand, and the Light Utility Helicopter. The proven success of this partnership lays a strong foundation for the development of the Aravalli engine, setting the stage for a new era in India’s helicopter capabilities.