Air India lawsuit won’t disrupt privatisation, government says
The Indian government doesn’t expect Air India’s privatisation to be derailed by a billion-dollar lawsuit just filed in the US against the flag carrier.
The suit by Cairn Energy wants to enforce a $1.2-billion arbitration award it won against the Indian government in a long-standing tax dispute.
Cairn argues it can sue the airline as a state run business and potentially seize its assets.
"Air India has no connection with Cairn Energy. Air India has not entered into or violated any contract with Cairn Energy. The airline’s disinvestment process will not be impacted by the legal proceedings," a finance ministry official said.
"As and when Air India becomes a private airline, then Cairn’s case will fall through automatically."
In December, the Permanent Court of Arbitration at The Hague ruled that the Indian government is liable to pay damages worth $1.2 billion to UK based Cairn in the tax dispute.
Since then the company has been seeking Indian state owned firms with operations overseas it is able to sue and seize assets.
This is where Air India comes in.
According to an Indian legal expert, Cairn ‘has the right to go after an asset of the government of India.’
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
TAP Air Portugal to operate 29 flights due to strike on December 11
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps