Updated September 15th, 2021 at 19:16 IST
Air India disinvestment: Tata Sons submits its bid; SpiceJet may also be in fray
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 AISATS
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The Aviation Ministry on Wednesday is said to have received at least two financial bids for the debt-laden national carrier Air India (AI) disinvestment. The government had initiated the process of financial bids for the flag carrier Air India (AI) as Aviation Minister Jyotiraditya Scindia made it clear that the September 15 deadline for the process is fixed and will not change.
As per agency reports, one prospective buyer is confirmed to have submitted its bid, while another bid is also likely to be placed. Air India is laden with a huge debt of around Rs 43,000 crores of which Rs 22,000 crores will also be transferred to the Air India Asset Holding Limited (AIAHL). "The debt of the airline has now increased to Rs 43,000 crore and all these loans are under government guarantee. And the government will bear this debt before the airline is transferred to the new owners," sources said.
The government declined to share any details on expectations from the sale of Air India.
Union Finance Ministry's Secretary, Department of Investment and Public Asset Management, on its Twitter handle informed, "Financial bids for Air India disinvestment received by Transaction Adviser. Process now moves to concluding stage."
RT FinMinIndia: RT @SecyDIPAM: Financial bids for Air India disinvestment received by Transaction Adviser. Process now moves to concluding stage. pic.twitter.com/M9jUv1R7J5
— Apte and Co (@aptenco) September 15, 2021
Tata Sons confirms bid for Air India; SpiceJet in the fray
A Tata Sons spokesperson told PTI that it has put in a bid for Air India. Earlier, it was reported that apart from the Tata Group, SpiceJet too may place their bids in the Air India disinvestment.
"The Tata Group, through its holding company, and SpiceJet chairman Ajay Singh, is likely to make a financial bid for the airline in his personal capacity," an industry source told ANI.
About Air India disinvestment
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 other 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.
(With Inputs: ANI)
(Image: PTI)
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Published September 15th, 2021 at 19:16 IST
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