NEW DELHI. June 5: The Indian government yesterday floated tenders for a "globaJ advisor* as a first step towards the planned privatisation of lossmaking Air India, says AFP.

"The global advisor will advise and assist the government to initiate disinvestment of its shareholding in the international carrier up to 60 per cent." a civil aviation ministry official said.

The advisor will be required to choose a strategic partner from a list of shortlisted companies. the official said.

"Internationally reputed me reliant-In vestment banks, consulting firms and financial Institutions witli expertise in privatisation have been Invited for selection as global advisor

either singly or as a consortium."' he added.

New Delhi on May 26 decided to offer 60 per cent equity of Air India, with 40 per cent of the stake going to strategic partners, including 26 per cent to a foreign partner.

The government would retain a 40 per cent stake, with the other 20 per can to be held by financial Institutions, retail Investors and airline employees.

A decision on the transfer of managerial control of Air India would be reached only after the global advisor identified potential buyers.

Air India has an ageing fleet of 26 Airbus and Boeing planes. Its ratio of employees to aircraft is about 770; 1 — compared

to the global average of about 250.1 — making wages one of its worst headaches.

Air India's plan to acquire 23 long-distance passenger planes for 2.12 billion dollars has yet to take off because of a resource crunch facing the company with total losses of 10 billion rupees (229 million dollars).

The financial year to March 2000 saw Air India post a loss of 897 million rupees (20 million dollarsl against I 7 billion rupees (41 million dollars) a year earlier.

Plans to reduce mounting losses included drawing up early retirement plans for more than 60 per cent of its .17,700 employees.