BOMBAY, 27 September 2005 — India plans to sell 10 to 20 percent of its stakes in state-owned Air-India and Indian Airlines in initial public offerings (IPOs) planned for next year aimed at financing fleet expansion, a report said yesterday. “The actual figure will depend upon the recommendation of financial consultants who will be appointed shortly,” Civil Aviation Minister Praful Patel told a business conference in Bombay.
Patel said earlier that the IPOs were slated for early 2006. They are planned to help fund the state-run airlines’ expansion requirements. The government recently approved domestic carrier Indian Airlines’ plans to buy 43 aircraft from European planemaker Airbus to update its aging fleet.