Tatas submit financial bid for Air India sale
New Delhi, Sep 15: Salt-to-software conglomerate Tata Group have submitted a bid for Air India disinvestment on Wednesday. It has been received by Transaction Adviser. The process now moves to the concluding stage: Department of Investment and Public Asset Management (DIPAM).
The government is selling its entire 100 per cent stake in Air India that has been in losses ever since its merger with domestic operator Indian Airlines in 2007.
The stake sale process got delayed due to the COVID pandemic and the government had extended five times the deadline to submit preliminary bids for the national carrier.
The airline, which started as a mail carrier in 1932, will give a 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 overseas.
Besides, the bidder would get 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which provides cargo and ground handling services at major Indian airports.
With previous attempts since 2017 failing to get any significant interest, the government had this time sweetened the deal by giving freedom to potential suitors to decide how much of the airline''s debt they want to take on as part of the transaction. Previously, the bidders were required to take over the entire Rs 60,074 crore debt.