The government on September 15 said it has received several financial bids to buy national carrier Air India.
Meanwhile, a Tata Sons spokesperson told PTI that it has bid for the airline.
DIPAM Secretary Tuhin Kanta Pandey tweeted, “Financial bids for Air India disinvestment received by the Transaction Advisor. The process is now in the final stage.”
The government is trying to sell its 100% stake In the state-owned national airline including Air India’s 100% stake in AI Express Limited and 50% in Air India SATS Airport Services Private Limited.
The stake sale process that began in January 2020 faced delays due to the COVID-19 pandemic. In April 2021, the government asked potential bidders to make financial bids.
15 September. was the last day of financial bidding.
The Tata group was among the many entities Which had filed an Initial Expression of Interest (EoI) in December 2020 to buy the Maharaja.
The government had in October last year sweetened the EOI clause relating to transfer of Air India’s debt to a new investor, after failing to receive any significant interest in previous attempts since 2017 and receiving feedback from potential investors, thereby The bidders have the flexibility to decide on the quantity. They want to absorb the huge debt.
According to Air India’s EOI released by the Department of Investment and Public Asset Management (DIPAM) in January 2020, of the airline’s total debt of ₹60,074 crore as on March 31, 2019, the buyer would need to absorb ₹23,286.5 crore. The rest will be transferred to Air India Assets Holding Limited (AIAHL), a special purpose vehicle.
Air India is running in loss since the merger With domestic operator Indian Airlines in 2007.
The airline, created by Tata as a mail carrier in 1932, would give successful bidder control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots at airports abroad.
In addition, the bidder will get 100% of the low-cost Air India Express and 50% of AISATS, which provides cargo and ground handling services at major Indian airports.
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