Air India Privatization, by June-Failed sale. What next?

dtw2hyd · Tue Jan 30, 2018 1:27 pm

Kashmon wrote:
dtw2hyd wrote:
kitplane01 wrote:
Air India domestic is a financial black hole. It's a disaster. It's toxic. No one can reform it (says decades of history) and the unions don't want to give back (says the unions) and the government wouldn't let you make the necessary changes (says the government every time someone tries to make big changes).

To think you can make domestic Air India healthy you must also think you are going to do a better job that all the other reformers that have come and failed before you, and that you can overcome all the obstacles that they could not.

Do you have any evidence to support this claim, other than unfettered support on a.net.

the fact that the Indian government operates it is enough evidence.

My question is specific to the claim "Air India domestic is a financial black hole. It's a disaster. It's toxic."

That is a typical AI(International) Mumbaikar's rant and diversion technique and to spread the s$%t around.

AI (Domestic) operating same aircraft type (A320) since 1989.
Same support infrastructure, same training facilities, same logistics.
The A320 crew is trained in-house in India, no need to spend $Millions like 787 crew, by sending them to Singapore or here.
Last time it purchased planes was in 2006
Still has the same number of planes around 66, most of them are leased, newer 19 are even PBTH.

Again, That is a typical AI(International) Mumbaikar's rant and diversion technique and to spread the s$%t around, to other units.

unrave · Tue Jan 30, 2018 3:07 pm

http://www.livemint.com/Companies/zjnZj ... -Vist.html

Up to four Indian carriers could express interest—Jet Airways, IndiGo, SpiceJet and Vistara,” Capa said in a report released in Mumbai on Tuesday

devmapper · Tue Jan 30, 2018 4:21 pm

kitplane01 wrote:
Air India domestic is a financial black hole. It's a disaster. It's toxic. No one can reform it (says decades of history) and the unions don't want to give back (says the unions) and the government wouldn't let you make the necessary changes (says the government every time someone tries to make big changes).

To think you can make domestic Air India healthy you must also think you are going to do a better job that all the other reformers that have come and failed before you, and that you can overcome all the obstacles that they could not.

AI's domestic operations are a black hole because it is not a focus for AI. Outside the DEL connectors for the international flights and the DEL-BOM shuttles, AI has not made any investments into route development. Unless QR invests in AI, I don't expect anyone to spend any money developing AI's domestic operations. My point is that any potential investor is not likely to pull out of the bidding process if GoI does not separate the domestic and international ops into different airlines.

unrave wrote:
http://www.livemint.com/Companies/zjnZj ... -Vist.html

Up to four Indian carriers could express interest—Jet Airways, IndiGo, SpiceJet and Vistara,” Capa said in a report released in Mumbai on Tuesday

I think CAPA is being optimistic here. I don't expect any domestic airline other than 6E to put in a serious bid.

unrave · Tue Jan 30, 2018 4:43 pm

A quick denial from Spicejet - Spicejet ‘too small’ to bid for Air India, says Ajay Singh

http://www.livemint.com/Companies/A2wIa ... Singh.html

unrave · Fri Feb 16, 2018 5:15 am

The glorious national carrier might have unpaid bills amounting to Rs. 20,000 crore
https://economictimes.indiatimes.com/in ... 936574.cms

For reference AI's annual revenue is ~24,000 crore

sibibom · Sun Mar 11, 2018 11:57 am

Its getting crowded!

Jet Airways, Air France-KLM, Delta consortium to bid for Air India

A consortium of Jet Airways, Air France-KLM and Delta Airlines understood to have expressed interest in the disinvestment of national carrier Air India, sources told PTI. Against this backdrop, sources said a consortium of three full services, including Jet Airways, are keen to put in their bid for the national carrier.

source : moneycontrol.com

Planeyguy · Sun Mar 11, 2018 12:48 pm

Would this privatisation cause AI to leave Star Alliance?

sibibom · Sun Mar 11, 2018 12:58 pm

Planeyguy wrote:
Would this privatisation cause AI to leave Star Alliance?

Depends on the new Owners, unless won by Singapore Airlines/Vistara or maybe even Indigo, it looks like they will be leaving Star Alliance

anshabhi · Sun Mar 11, 2018 1:54 pm

sibibom wrote:
Its getting crowded!

Jet Airways, Air France-KLM, Delta consortium to bid for Air India

A consortium of Jet Airways, Air France-KLM and Delta Airlines understood to have expressed interest in the disinvestment of national carrier Air India, sources told PTI. Against this backdrop, sources said a consortium of three full services, including Jet Airways, are keen to put in their bid for the national carrier.

source : moneycontrol.com

Still the maximum a foreign airline can own in AI is 49%. 9W itself has a huge debt, poor OTP and much lesser operating profit and cash. I would say 6E is in a better position to ride the AI roller coaster. 9W needs to fix a lot of things about itself first, including the unclaimed B788 orders, dropping domestic share etc etc

unrave · Sun Mar 11, 2018 2:11 pm

Assuming this is a serious bid, how will 9W fund it? They already have a mountain of debt and past accumulated losses have severely eroded their equity

william · Sun Mar 11, 2018 2:37 pm

Whoever the new owners are, I wander what hard decisions and actions would be put in place to right the ship.

studentdrbev · Sun Mar 11, 2018 2:41 pm

Planeyguy wrote:
Would this privatisation cause AI to leave Star Alliance?

Honestly I don't think they belong in Star Alliance unless they get massive upgrade in their hard and soft products by their new owners.

Lost all hopes in the Indian Government

studentdrbev · Sun Mar 11, 2018 2:45 pm

william wrote:
Whoever the new owners are, I wander what hard decisions and actions would be put in place to right the ship.

Axing non-profitable routes would be their first action, if you would ask me.

They should follow JAL's footsteps.

sibibom · Sun Mar 11, 2018 2:53 pm

How does Jet work around the fact that it is 24% owned by a foreign entity (Eithad ain't selling in the next week months). Does that get accounted while buying AI? That bid seems complicated. (Let alone the Jet's own "real" ownership issue)

VolvoBus · Sun Mar 11, 2018 7:40 pm

studentdrbev wrote:
william wrote:
Whoever the new owners are, I wander what hard decisions and actions would be put in place to right the ship.

Axing non-profitable routes would be their first action, if you would ask me.

They should follow JAL's footsteps.

If they do not know the figure for their creditors, I suggest the first thing to do is clear out the accounts department. An unknown creditors figure also raises the question of how big is the overdue debtors figure that nobody seems to be interested in collecting.

I would think any purchaser is going to want a Government guarantee that the accounts in the sales documents are accurate, and probably an indemnity if they are not.

lightsaber · Sun Mar 11, 2018 9:19 pm

unrave wrote:
The glorious national carrier might have unpaid bills amounting to Rs. 20,000 crore
https://economictimes.indiatimes.com/in ... 936574.cms

For reference AI's annual revenue is ~24,000 crore

Wow... That is how you get an operating profit.

Any buyer must have in writing the debt and unpaid bills they are responsible for and what the GoI owns.

I'll be curious as to the bids.

BawliBooch · Mon Mar 12, 2018 2:47 am

Let us go easy on the disinvestment speculation. It is not going to happen in the way & in the timeline many of you are hoping.

Given this govt's record, it could well take the form of a shock announcement one day with AI being handed over to a chosen crony. But given the record of how such shock treatments have gone in the past (Demonetization etc), I have my doubts on that happening.

Said it before, say it again: the earliest timeline for a potential AI sale would be 2025 or thereabouts.

lightsaber · Mon Mar 12, 2018 7:53 am

BawliBooch wrote:
Let us go easy on the disinvestment speculation. It is not going to happen in the way & in the timeline many of you are hoping.

Given this govt's record, it could well take the form of a shock announcement one day with AI being handed over to a chosen crony. But given the record of how such shock treatments have gone in the past (Demonetization etc), I have my doubts on that happening.

Said it before, say it again: the earliest timeline for a potential AI sale would be 2025 or thereabouts.

Why? AI lost 3,900 crore last year. Barely down from 5,800 crore. With how little subsidy remains, the airline will have to be shut down by mid-2021 without a sale. Improvement has been too slow. Look at the unpaid fees found. AI is approaching a very Kingfisher like shutdown.

https://www.google.com/amp/s/m.economic ... 189700.cms

There unpaid debt is too staggering for vendors to continue forever.

Lightsaber

unrave · Mon Mar 12, 2018 8:32 am

lightsaber wrote:
With how little subsidy remains, the airline will have to be shut down by mid-2021 without a sale.

That will not happen. India hasn't yet completely adopted market economics, heck this is a country where barely 10 years back communists were quite influential in the government, and it is quite a cumbersome process to shut a business down, so the powers that be will continue to throw good money after bad in an effort to keep it afloat. We have a right leaning (by Indian standards) government in power now and it is best if this mess is disposed off soon.

hohd · Mon Mar 12, 2018 2:19 pm

Due to the upcoming elections nothing may be done unless the bidder guarantees that all current employees are retained. However after the elections, GOI has the free hand to do whatever, perhaps that is the best time.

As far as the losses in the domestic sector, most AI flights I have taken are nearly full and cost more than Indigo or Spicejet. However AI has to cutback on meals especially on short flights and reduce baggage allowances to generate more revenue.

lightsaber · Mon Mar 12, 2018 5:00 pm

Wow...

Market value of Air India: 28,500 crore

Debt twice that. Oh... This won't end well.

https://www.google.com/amp/s/www.moneyc ... 5.html/amp

anshabhi · Mon Mar 12, 2018 6:22 pm

lightsaber wrote:
Wow...

Market value of Air India: 28,500 crore

Debt twice that. Oh... This won't end well.

https://www.google.com/amp/s/www.moneyc ... 5.html/amp

The govt will set up a Special Purpose Vehicle (SPV) to transfer all the working capital debt. The new owner will only have to handle aircraft and other assets related debt. This debt is around 26,000 crore.
As long as AI remains a govt entity, it's basically transfer of money from govt owned Public Sector Banks to AI and vice versa. Things would be very different for a new owner though.

globetrotter94 · Mon Mar 12, 2018 6:48 pm

anshabhi wrote:
As long as AI remains a govt entity, it's basically transfer of money from govt owned Public Sector Banks to AI and vice versa.

I really don't understand why people don't understand this one simple fact, and how this is what all the shenanigans related to AI hinge upon.

vadodara · Mon Mar 12, 2018 6:51 pm

lightsaber wrote:
unrave wrote:
The glorious national carrier might have unpaid bills amounting to Rs. 20,000 crore
https://economictimes.indiatimes.com/in ... 936574.cms

For reference AI's annual revenue is ~24,000 crore

Wow... That is how you get an operating profit.

Any buyer must have in writing the debt and unpaid bills they are responsible for and what the GoI owns.

I'll be curious as to the bids.

The only way anyone even buys a piece of Air India, it will be without its 'employees'. The only question is how much is the govt. willing to push Air India aside for rest of the aviation to grow. The risk is the ruckus the Air India employees can cause.

hohd · Tue Mar 13, 2018 2:41 pm

vadodara wrote:
lightsaber wrote:
unrave wrote:
The glorious national carrier might have unpaid bills amounting to Rs. 20,000 crore
https://economictimes.indiatimes.com/in ... 936574.cms

For reference AI's annual revenue is ~24,000 crore

Wow... That is how you get an operating profit.

Any buyer must have in writing the debt and unpaid bills they are responsible for and what the GoI owns.

I'll be curious as to the bids.

The only way anyone even buys a piece of Air India, it will be without its 'employees'. The only question is how much is the govt. willing to push Air India aside for rest of the aviation to grow. The risk is the ruckus the Air India employees can cause.

Unlike the past AI employees have not much leverage except for some international destinations. Domestically if AI stopped tomorrow, most of India will not even miss them. However internationally the effects will be felt especially on AI express routes to/from Middle East and some routes to USA.

oldannyboy · Tue Mar 13, 2018 3:26 pm

globetrotter94 wrote:
anshabhi wrote:
As long as AI remains a govt entity, it's basically transfer of money from govt owned Public Sector Banks to AI and vice versa.

I really don't understand why people don't understand this one simple fact, and how this is what all the shenanigans related to AI hinge upon.

AI is NOT going to end operations, or be privatized. Not any time soon.

On a side note: I had a couple of flights on AI recently (one on the 787) and must admit they were not at all bad. Lovely colourful interiors and good food!

Spiderguy252 · Tue Mar 13, 2018 8:02 pm

hohd wrote:
Unlike the past AI employees have not much leverage except for some international destinations. Domestically if AI stopped tomorrow, most of India will not even miss them. However internationally the effects will be felt especially on AI express routes to/from Middle East and some routes to USA.

What AI Express routes? Pretty sure the Gulf carriers + IndiGo + Jet + other LCCs will clean up any niche spokes that AI Express solely serves - if there are any of those in the first place.

Antarius · Tue Mar 13, 2018 8:36 pm

oldannyboy wrote:
On a side note: I had a couple of flights on AI recently (one on the 787) and must admit they were not at all bad. Lovely colourful interiors and good food!

Colorful yes, but talk about ratty interiors and last decade IFE. Also, no one can age an 8 month old aircraft into a seemingly 20 year old one quite like AI.

jimbobjoe · Wed Mar 14, 2018 2:26 am

Antarius wrote:
oldannyboy wrote:
Also, no one can age an 8 month old aircraft into a seemingly 20 year old one quite like AI.

Heh. I like this. It's true.

And yet, I choose AI. The A321 interiors and seating are old, but so roomy and comfortable in comparison to (for example) 6E. 180 economy in 6E's A320, 12/170 in AI's A321. I don't have to think about this choice. I hate 6E's seats.

globetrotter94 · Wed Mar 14, 2018 4:36 am

Spiderguy252 wrote:
hohd wrote:
Unlike the past AI employees have not much leverage except for some international destinations. Domestically if AI stopped tomorrow, most of India will not even miss them. However internationally the effects will be felt especially on AI express routes to/from Middle East and some routes to USA.

What AI Express routes? Pretty sure the Gulf carriers + IndiGo + Jet + other LCCs will clean up any niche spokes that AI Express solely serves - if there are any of those in the first place.

My impression is that AI Express is a favorite of the migrant laborer communities in the Middle East.

Spiderguy252 · Wed Mar 14, 2018 5:15 am

globetrotter94 wrote:
Spiderguy252 wrote:
hohd wrote:
Unlike the past AI employees have not much leverage except for some international destinations. Domestically if AI stopped tomorrow, most of India will not even miss them. However internationally the effects will be felt especially on AI express routes to/from Middle East and some routes to USA.

What AI Express routes? Pretty sure the Gulf carriers + IndiGo + Jet + other LCCs will clean up any niche spokes that AI Express solely serves - if there are any of those in the first place.

My impression is that AI Express is a favorite of the migrant laborer communities in the Middle East.

I suppose cheapest fares would be the favourite and not particularly AI Express. If AI Express consistently offer cheapest fares on the routes they fly, then perhaps there is some merit.

On a sidenote, AI Express is a pseudo-FSC. Free bags and meals still reign.

globetrotter94 · Wed Mar 14, 2018 3:40 pm

Spiderguy252 wrote:
globetrotter94 wrote:
Spiderguy252 wrote:

What AI Express routes? Pretty sure the Gulf carriers + IndiGo + Jet + other LCCs will clean up any niche spokes that AI Express solely serves - if there are any of those in the first place.

My impression is that AI Express is a favorite of the migrant laborer communities in the Middle East.

I suppose cheapest fares would be the favourite and not particularly AI Express. If AI Express consistently offer cheapest fares on the routes they fly, then perhaps there is some merit.

On a sidenote, AI Express is a pseudo-FSC. Free bags and meals still reign.

I also think it has to do with the particular routes they fly. Do any other Indian carriers have so much network out of Kerala (Kochi, to be specific), for example?

Spiderguy252 · Wed Mar 14, 2018 3:50 pm

globetrotter94 wrote:
I also think it has to do with the particular routes they fly. Do any other Indian carriers have so much network out of Kerala (Kochi, to be specific), for example?

They do not, but the likes of Air Arabia and FlyDubai (among others) will certainly step in to fill the gap if IX were to go away. Admittedly, certain destinations will still be left without the direct connectivity that IX offered - Salalah, Dammam, and Singapore.

unrave · Mon Mar 19, 2018 3:04 am

Govt mulls allowing airlines with negative net worth to bid for Air India
http://www.business-standard.com/articl ... 026_1.html

If this comes to fruition, the likes of 9W and UK - who have a negative net worth - will become eligible to bid.

anshabhi · Fri Mar 23, 2018 5:27 am

unrave wrote:
Govt mulls allowing airlines with negative net worth to bid for Air India
http://www.business-standard.com/articl ... 026_1.html

If this comes to fruition, the likes of 9W and UK - who have a negative net worth - will become eligible to bid.

Air India bidders must have minimum net worth of Rs 5,000 crore

Plot twist: IndiGo's net worth is 3800 crore only. They need a partner to reach the minimum 5000 crore mark !!

unrave · Fri Mar 23, 2018 6:33 am

anshabhi wrote:
Plot twist: IndiGo's net worth is 3800 crore only. They need a partner to reach the minimum 5000 crore mark !!

So a solo bid by 6E is ruled out. If I were to hazard a guess this would favour a Vistara - SIA bid, since it checks all the boxes. Who knows Niira Radia could still be able to pull some strings.

globetrotter94 · Fri Mar 23, 2018 6:41 am

unrave wrote:
anshabhi wrote:
Plot twist: IndiGo's net worth is 3800 crore only. They need a partner to reach the minimum 5000 crore mark !!

So a solo bid by 6E is ruled out. If I were to hazard a guess this would favour a Vistara - SIA bid, since it checks all the boxes. Who knows Niira Radia could still be able to pull some strings.

If privatization goes forward, then the potential SQ/UK bid would be the one to cause least disruption to AI in the first place. I would envision AI remaining in Star Alliance, and UK simply being absorbed into it (I imagine Tata's would prefer to preserve the Air India branding--plus, I have never felt much resonance from the Vistara name to begin with, but some may disagree). Would also be good fleet-wise since UK's fleet consists solely of a small number of A320s and A320neos, which AI has experience operating already and can be merged in relatively easily. Do UK also use CFM engines for their entire A320 fleet--if so, that gives even more commonality.

unrave · Fri Mar 23, 2018 6:48 am

globetrotter94 wrote:
Do UK also use CFM engines for their entire A320 fleet--if so, that gives even more commonality.

Tata-SIA winning the bid would be the best outcome in my opinion too as it would mark the return of AI to its original home. Could have happened way back in 2000 if the minister hadn't been a puppet of Naresh Goyal. Both UK and AI have the LEAP engines on their neos, I am not sure about their ceos.

globetrotter94 · Fri Mar 23, 2018 6:51 am

Which potential buyers have so far NOT denied interest? Is it surprising that we are not hearing anything from other possible contenders like LH for example?

Phosphorus · Fri Mar 23, 2018 8:04 am

unrave wrote:
Govt mulls allowing airlines with negative net worth to bid for Air India
http://www.business-standard.com/articl ... 026_1.html

If this comes to fruition, the likes of 9W and UK - who have a negative net worth - will become eligible to bid.

Can you please enlighten me a bit more?
In most jurisdictions I'm aware of, operating a business with a negative net worth is illegal. In some countries, management is criminally liable if they become aware of the negative net worth, and do not notify courts of their bankrupt situation (in England, it's called AFAIR "trading while insolvent"; other countries have their own names for this situation).
Here, we see a special permission for a negative net worth companies to buy something.
Does it mean that in India, it's legal to run a business with a negative net worth, as in "business as usual"? Are there special rules?

unrave · Fri Mar 23, 2018 8:30 am

Phosphorus wrote:

Can you please enlighten me a bit more?
In most jurisdictions I'm aware of, operating a business with a negative net worth is illegal. In some countries, management is criminally liable if they become aware of the negative net worth, and do not notify courts of their bankrupt situation (in England, it's called AFAIR "trading while insolvent"; other countries have their own names for this situation).
Here, we see a special permission for a negative net worth companies to buy something.
Does it mean that in India, it's legal to run a business with a negative net worth, as in "business as usual"? Are there special rules?

I don't think there is any provision in Indian corporate law that prohibits running a company with a negative net worth. Jet Aiways' net worth has remained negative for as along as I have tracked it. Just to be sure a negative net worth here is a negative difference between the assets and liabilities.

Edit: I can think of at least one more jurisdiction that allows companies to operate with a negative net worth: the US. Revlon, listed on the NYSE, has a large negative net worth.

Phosphorus · Fri Mar 23, 2018 10:24 am

unrave wrote:
Phosphorus wrote:

Can you please enlighten me a bit more?
In most jurisdictions I'm aware of, operating a business with a negative net worth is illegal. In some countries, management is criminally liable if they become aware of the negative net worth, and do not notify courts of their bankrupt situation (in England, it's called AFAIR "trading while insolvent"; other countries have their own names for this situation).
Here, we see a special permission for a negative net worth companies to buy something.
Does it mean that in India, it's legal to run a business with a negative net worth, as in "business as usual"? Are there special rules?

I don't think there is any provision in Indian corporate law that prohibits running a company with a negative net worth. Jet Aiways' net worth has remained negative for as along as I have tracked it. Just to be sure a negative net worth here is a negative difference between the assets and liabilities.

Edit: I can think of at least one more jurisdiction that allows companies to operate with a negative net worth: the US. Revlon, listed on the NYSE, has a large negative net worth.

Thank you for the explanation.

Now that you mentioned the US, it started to make sense to me. Basically, it's a philosophical difference -- if any individual can be a business, and an individual may be trading in case of a negative net worth, as long as the bills are paid in time... Why should there be a specific exception for companies then? Then apparently companies, in such jurisdictions, are not in a breach of local business laws and traditions.

unrave · Wed Mar 28, 2018 1:03 pm

Just In: Government Invites EoI for the sale of Air India

May 14 is the deadline for submission of EoI

unrave · Wed Mar 28, 2018 1:05 pm

Existing Debt & Liabilities Of Rs 33,392 Cr To Remain With Air India & AI Express.

Balance Debt To Be Allocated To AI Asset Holding Ltd, A 100% GoI Owned Entity.

Contingent Liabilities To Remain With Air India & Low Cost Service AI Express

unrave · Wed Mar 28, 2018 1:35 pm

lightsaber wrote:
Wow...

Market value of Air India: 28,500 crore

Debt twice that. Oh... This won't end well.

The invitation for EoI has detailed financials: http://www.civilaviation.gov.in/sites/d ... RANDUM.pdf

lightsaber · Wed Mar 28, 2018 2:01 pm

unrave wrote:
lightsaber wrote:
Wow...

Market value of Air India: 28,500 crore

Debt twice that. Oh... This won't end well.

The invitation for EoI has detailed financials: http://www.civilaviation.gov.in/sites/d ... RANDUM.pdf

Interesting link
CASK: 4.7
RASK: 4.0
3.13.5 shows liabilities growing.

No indemnification of future found liabilities.
Total profit:. -26%

Selling 76% of Air India

Errr... Perhaps not a bad thing Indigo has too low a net worth to bid.

Lightsaber

lightsaber · Wed Mar 28, 2018 2:45 pm

Hattip to Sibibom:
https://m.timesofindia.com/business/ind ... 517948.cms

Decision by end June, legal ownership by December.

I have edited the thread title to show June is the decision.

vadodara · Wed Mar 28, 2018 4:17 pm

Between the debt and employees, seems like the best outcome and least disruptive outcome might be Tata's (Tata Sons/Vistara/Singapore Air) combination bids for this.

Highly doubt that Indigo might want to take-over the workforce.

Jet might have to fight history as well as its poor finances; first, blocking AI's privatization and its own botched Sahara takeover.

Dark horse: Qatar or likes of IAG (even though they are nowhere in picture so far)

CaliguyNYC · Wed Mar 28, 2018 5:56 pm

Jet will only participate if there is some legal way for AF/KL/DL and/or private equity to funnel the money to them. The only reason AF might really push for this, is to get a hold of slots and established routes in a growing while at the same time infrastructure constrained environment (the ship has really saved in China). Whomever gets AI, 9W or Tata, will basically be launched into another league. 9W would have working hubs and tons of slots in the 2 biggest airports in India. Think about all the new cities 9W could open up in BOM if they just rationalized AI/9W's BOM-DEL flights (run larger planes and keep frequency). Exciting times which ever way it goes. Wonder what Star alliance thinks (specifically LH). No guarantee AI will stay in STAR even with SQ. My guess would be Oneworld (BA) would really court the new owner if it's Tata.

globetrotter94 · Wed Mar 28, 2018 6:21 pm

CaliguyNYC wrote:
Jet will only participate if there is some legal way for AF/KL/DL and/or private equity to funnel the money to them. The only reason AF might really push for this, is to get a hold of slots and established routes in a growing while at the same time infrastructure constrained environment (the ship has really saved in China). Whomever gets AI, 9W or Tata, will basically be launched into another league. 9W would have working hubs and tons of slots in the 2 biggest airports in India. Think about all the new cities 9W could open up in BOM if they just rationalized AI/9W's BOM-DEL flights (run larger planes and keep frequency). Exciting times which ever way it goes. Wonder what Star alliance thinks (specifically LH). No guarantee AI will stay in STAR even with SQ. My guess would be Oneworld (BA) would really court the new owner if it's Tata.

Pretty sure SQ would insist AI stay in Star. Besides, why would OneWorld or SkyTeam accept a member that has management input (if not more) from the member of a rival alliance?

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