In an interesting twist to the saga of Air India, reports are coming in that some employees are planning to take per Air India by bidding to its sale, and control its operations.
If this happens, then it would be a first such instance in the corporate history of India.
And to make it happen, they will need to outbid Tata Sons.
How will this work out?
Air India Employees Plan To Take Over Air India
As per reports coming in, some Air India employees are planning to bid for Air India, by investing not more than Rs 100,000.
As of now, there are 14,000 employees in Air India, and if all of them contribute Rs 100,000 each, then they can have a huge corpus.
As per an internal note being circulated among employees, it’s stated that “…after successfully completing stage 1, we are planning our bid in such a way that no single employee will have to contribute more than Rs 1 lakh,”
The employees need not worry about money, since it needs to be paid only after an Expression of Interest is completed.
How Will This Work Out?
As per the plan floated by some of the employees, a private investor will be roped in as well, to secure the acquisition of Air India.
In case this happens, then the employees will hold 51% controlling stake, and the private investor will hold 49% stake in the nw entity.
On papers, this seems like a revolutionary idea, but practically, this seems like a tough journey.
Who will decide share of profits, who will be the CEO, and the management team? In case fresh funds is required to run the operations, how will they arrange it?
And which private investor will attempt to bid against Tata Sons, Vistara and Singapore Airlines, who are forming a consortium to bid for Air India?
December 14th is the last date for bidding for Air India.
We will keep you updated, as more details come in.
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