United Kingdom
United States
Asia Pacific
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.
Mark Jaronski of Explore Georgia on FIFA World Cup 2026
Connecting Small Businesses to Global Tourism Markets: Nate Huff of Tourism Exchange
North Carolina’s Resilience: Wit Tuttell on Recovery and Tourism
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel
Foreign Office issues travel advisory for winter sun destinations