Air India disinvestment: Debt-laden airline Air India has received financial bids for its disinvestment process, Finance Ministry informed on Wednesday.
“Financial bids for Air India disinvestment received by Transaction Adviser. The process now moves to concluding stage,” the secretary, Department of Investment and Public Asset Management, said on Twitter.
Financial bids for Air India disinvestment received by Transaction Adviser. Process now moves to concluding stage. pic.twitter.com/0NxCJxX5Q1— Secretary, DIPAM (@SecyDIPAM) September 15, 2021
A Tata Sons spokesperson told PTI that it has put in a bid for Air India.
The Centre has initiated the process of financial bids for the national carrier as Aviation Minister Jyotiraditya Scindia made it clear that September 15 date for the process is fixed and will not change.
After failing to find any buyer for a 76% stake in Air India in 2018, the central government is expected to complete the sale of the national carrier with at least two buyers expected to submit financial bids by September 15.
“The Tata Group, through its holding company and SpiceJet chairman Ajay Singh, is likely to make its financial bid for the airline in his personal capacity,” an industry source recently told ANI.
“We are very optimistic that this time Air India will get a new bidder,” a government official told the news agency.
Air India has a debt of around ₹43,000 crores of which ₹22,000 crores will also be transferred to the Air India Asset Holding Limited (AIAHL).
The Centre is planning to sell a 100% stake in the airline and its low-cost subsidiary Air India Express. And a 50% stake in ground handling company Air India SATS Airport Services Private Limited (AISATS).
Other properties including the Air India building in Mumbai, Airlines House in Delhi will also be part of the deal.
Four acres of land at Connaught Place in Delhi and various housing societies in Delhi, Mumbai, and other cities for AI employees and others usage. Air India’s subsidiaries such as Air India Engineering Services Limited (AIESL) and Air India Air Transport Services Limited (AITSL) will also be part of AIAHL.
At present Air India has control over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots abroad.
(Source: PTI, not edited by travelobiz staff)