Final bids for Air India disinvestment today; Tata Group, SpiceJet likely to take part

The government has begun the process of financial bids for the debt-laden national carrier Air India (AI) on Wednesday, September 15, as Aviation Minister Jyotiraditya Scindia made it clear that the process is fixed and will not change. It is assumed that the government will complete the sale of the national carrier, with at least two buyers expected to submit financial bids by September 15. In 2018, Air India failed to find a buyer for a 76 percent stake.

On the condition of anonymity, a government source informed, "We are very optimistic that this time Air India will get a new bidder". 

An industry source told ANI, "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".

As per the media reports, SpiceJet’s chairman and managing director Ajay Singh has also been shortlisted to bid for Air India in his individual capacity. 

Air India is laden with a huge debt of about Rs 43,000 crores of which Rs 22,000 crores will be transferred to the Air India Asset Holding Limited (AIAHL). Sources added, "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". 

Earlier in April, Tuhin Kanta Pandey, secretary of the department of investment and public asset management, had said, "The national carrier’s divestment process has been delayed by a few months due to the pandemic and also due to long-drawn processes such as physical inspection of assets by potential bidders". 

Centre's take on Air India's sales

According to the government's plan, the Centre will sell a 100 percent stake in the airline and its low-cost subsidiary Air India Express. And a 50 percent stake in ground handling company Air India SATS Airport Services Private Limited (AISATS). The government has refused to share any information on expectations from Air India sales.

Some of the other properties will be part of the deal, including four acres of land at Connaught Place in Delhi and various housing societies in Delhi, Mumbai, and other cities for AI employees and other users. Also, Air India's subsidiaries, such as Air India Engineering Services Limited (AIESL) and Air India Air Transport Services Limited (AITSL) will be part of AIAHL. At the same time, the Air India building in Mumbai and the Airlines House in Delhi are considered under the deal. 

As of now, Air India has control over 4,400 domestic and 1,800 international landing and parking slots at domestic airports and 900 slots abroad.

(With ANI input)

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