Tata Group to file an Expression of Interest for Air India today. Tata group will use Air Asia as a vehicle where Tata Sons have a significant majority stake. A group of 200 Air India employees too is expected to place an expression of interest, the deadline for which is Monday 5 pm.
Tata Group, the country’s largest industrial conglomerate, has handed over an expression of interest to buy the troubled state-run Air India. According to sources, the Tata group submitted bids for Air India last weekend. In this way, Air India may return home after 53 years. Tata is believed to have used AirAsia India in which Tata Sons has a majority stake.
Tata Group to file an Expression of Interest for Air India today. Tata group will use Air Asia as a vehicle where Tata Sons has a significant majority stake: Sources pic.twitter.com/bonhekaHJm
— ANI (@ANI) December 14, 2020
The Tata Group, which founded AI as Tata Airlines in October 1932—is being seen as the most likely winner. The government took control of AI in 1953.
The national airline has a lot of interests this time around, unlike in May 2018 when the first attempt to sell 76% stake in Air India failed to attract any suitors.
Union Aviation Minister Hardeep Singh Puri, who had said in 2019 that Air India will have to shut down if it’s not privatized stated on Sunday, December 13, that the national carrier’s divestment is a “confidential procedure” and that the “concerned department (DIPAM) will comment at the appropriate time.”
Though Tata Sons runs a premier full-service carrier, Vistara, in partnership with Singapore Airlines is determined to route its AI curiosity by price range provider AirAsia India. Singapore Airways was not eager in collaborating within the privatization program of the already distressed AI as it will solely add to Vistara’s and its personal monetary troubles.
The Southeast Asian firm is within the midst of elevating liquidity after it posted its greatest quarterly loss because of a plunge in journey demand due to coronavirus. In the meantime, AI’s debt-cum-liabilities’ mixed burden is nearly Rs 90,000 crore.