Tatas, SpiceJet promoter submit financial bids to acquire Air India

Tribune News Service

New Delhi, September 15

The government today moved a step closer to selling Air India, as two interested parties have placed their final financial bids for buying the entire public holding in the cash-strapped national carrier.

The two bidders are Tata Sons and SpiceJet promoter Ajay Singh, in his personal capacity, officials in the Ministry of Finance said. According to sources, Singh is looking to form a consortium to acquire Air India.

Maharaja ON sale

• The govt is seeking to sell its entire stake in the national carrier, including Air India’s 100% stake in AI Express Ltd and 50% in Air India SATS Airport Services Pvt Ltd
• Of the airline’s debt of Rs60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs23,286 crore. The rest would be transferred to Air India Assets Holding Ltd

The Tata Group founded Air India as Tata Airlines in October 1932. The government nationalised it in 1953.

Tatas operate a premier full-service carrier, Vistara, in partnership with Singapore Airlines. It was not immediately known if the group put in the bid on its own or through budget carrier AirAsia India.

Today was the last day for submitting financial bids. "Financial bids for Air India disinvestment received by Transaction Adviser. The process now moves to the concluding stage," said a senior official in the Ministry of Finance.

This is a major development in Air India's divestment process, which has faced significant delays due to the Covid pandemic.

Earlier in its first attempt in 2018, the government had failed to attract prospective buyers. At that time, the government had floated an offer to sell 76% stake. But now, the government is looking to sell its entire stake in Air India.

The offer includes all of Air India and Air India Express and a 50% stake in the ground handling capacity of AISATS. As of now, Air India has control over at least 4,400 domestic and 1,800 international landing and parking slots at domestic airports. It also has 900 slots abroad.

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