There is an update on the twisted tale of Air India!
Earlier we had reported that some of the employees of Air India are planning to take ownership of the airline by bidding on its sale.
Read on to know what’s the update.
Are The Employees Of Air India Really Taking Its Ownership?
It turns out that as many as 209 employees of Air India are finally going to bid on the airline with a private investor to secure the purchase. As reported earlier each employee will have to contribute 1 Lakh in the bid. 4th December is the end date of the bid. The whole procedure will be conducted by the Commercial Director of Air India, Meenakshi Mallik.
In a letter to the Team members of Air India Meenakshi said,” The PIM, thankfully, made it possible for the employees of Air India to take charge and ownership of the airline, and to this end, provides various terms and conditions which need to be fulfilled, and which we intend to collectively achieve and satisfy”
How Are The Employees Planning To Buy Air India In Just 1 lakh Rupees?
The employees could not raise the necessary amount alone. Hence they have approached a private equity firm who will contribute to the bid and share the ownership of the airline along with the employees.
Cleverly, since the ownership of the company is the prior concern of the employees, The partnership with the private funder is such that it will get 49% while
Employee – Management Consortium will get 51% of the company.
According to these figures and the amount the private investor is ready to contribute, each employee interested in the bid will not have to pay more than one lakh. In this way, it is ensured that the majority of the ownership is in the hands of employees while they just have to pay Rs 1,00,000 each.
What Is Going To Happen Next?
The employees interested in taking ownership of AI will participate in the bidding process. They will have to compete with some of the largest corporations who are also interested in this purchase.
The employees will also have to justify their intentions and capacity to own the airline by submitting some of their documents as proof.
Mallik ended the letter to the team members by saying, “There are two other commitments which we have to make to each other in order to succeed in this process. First, the assurance of absolute discretion and confidentiality. As you know, any information which is leaked can and will jeopardize our bid and chances in this project. Hence I appeal to all of you to refrain from discussing this matter with anyone who is not a part of our small group; and second, commitment to the project, since it is by your dedication, of your labor, and for your success, that we will participate in this project, together”
This is a very unique initiative ideated by the employees that can make them feel more powerful and more responsible towards the company. It will be interesting to know if they succeed in their mission. If they do, this is going to be a milestone in the history of the corporate world.
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