The government is expected to complete the bidding process for debt-ridden national carrier Air India on Wednesday (September 15). Tata Sons has officially submitted its bid for sale.
The Finance Ministry said that Air India has received financial bids (including Tata’s) for its disinvestment process. “The financial bids for the disinvestment of Air India have been received by the transaction advisor. The process is now in the final stage,” said Tuhin Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM).
Aviation Minister Jyotiraditya Scindia had earlier clarified that September 15 is the deadline for the process and there will be no change.
Tata founded Tata Airlines in 1932, which was later renamed Air India in 1946. The government took control of the airline in 1953 but JRD Tata remained its chairman until 1977.
Currently, Tata operates Vistara in partnership with Malaysia’s AirAsia in partnership with Singapore Airlines and AirAsia India.
Air India has a debt of Rs 43,000 crore, of which Rs 22,000 crore will also be transferred to Air India Asset Holding Limited (AIAHL).
The government is planning to sell 100% stake in the airline and its low-cost arm Air India Express. and 50% stake in ground handling company Air India SATS Airport Services Private Limited (AISATS).
Other properties including Air India Building in Mumbai and Airlines House in Delhi will also be part of the deal.
Currently, the airline handles over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots overseas.
An attempt to auction off a majority stake in Air India almost three years ago did not lead to any bidding. This time the Center was forced to relax some conditions.
The government has also extended the deadline several times due to the COVID-19 pandemic.
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