New Delhi: The deadline for submission of financial bids for debt-ridden Air India is ending today as the central government moves ahead with disinvestment of the iconic national carrier popularly known as ‘Maharajah’. Tata group is in the race to bid for Air India, as per an ANI report.
Tata group is likely to make the financial bid for the national carrier through its holding company and SpiceJet Chairman Ajay Singh. The central government is optimistic about getting a new bidder, as per the ANI report.
Air India Sale, Disinvestment Updates
- Earlier in September, Civil Aviation Minister Jyotiraditya Scindia had confirmed that the deadline for financial bids for Air India will remain September 15. Back in April, the central government had started the process for inviting financial bids for the debt-ridden airline, as per PTI report.
- Apart from offloading its entire stake in loss-making Air India, the government will be selling budget airline Air India Express and Air India’s 50 per cent stake in AISATS. The latter provides cargo and ground handling services, PTI reported.
- Meanwhile, the central government has already exempted taxes on transfer of assets by Air India to SPV Air India Assets Holding Ltd, a move aimed at facilitating strategic disinvestment of the national carrier, PTI reported.
- As a precursor to Air India sale, the government in 2019 had set up a special purpose vehicle — Air India Assets Holding Ltd (AIAHL) — for transfer of debt and non-core assets of the Air India group, PTI reported.
- Notably, the central government’s efforts to divest Air India in 2018 failed to take off after it did not receive any bid when the deadline closed on May 31, 2018. At that time, the proposal was to sell 76 per cent equity share capital of the national carrier as well as transfer the management control to private players, PTI reported.
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