Tata Sons will submit bid for Air India – sources.
The Tata Sons conglomerate is expected to submit an initial bid for the purchase of state airline Air India before the auction deadline on Monday night, sources familiar with the matter told Reuters.
See also: China suggests flight attendants use diapers to prevent Covid.
In January, the government of Prime Minister Narendra Modi renewed its drive to sell off its entire stake in the loss-making airline, which has been held up for ransom since 2012.
An effort to auction off a majority stake nearly two years ago did not result in any bids, forcing the government to soften the terms. It has also extended the deadline several times this year due to COVID-19 and has further softened the terms to attract bidders.
See also: Hong Kong temporarily blocks routes some airlines.
Tata already operates two airlines in India: Vistara, which is in partnership with Singapore Airlines, and AirAsia India along with Malaysia’s AirAsia Group.
The successful bidder would gain control of Air India’s 4,400 landing and parking spaces at domestic airports and 1,800 parking spaces at international airports as well as 900 spaces at overseas airports.
It would also get 100% of the low-cost subsidiary Air India Express and 50% of AISATS, which provides cargo and ground handling services at major airports in India, according to the tender document.
A group of more than 200 employees of Air India has also submitted an initial bid for the company in partnership with a private financial institution, the Business Standard newspaper reported on Monday.
By Aditi Shah, edited by Louise Heavens
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