Tata, SpiceJet put in financial bids for Air India acquisition

tata spicejet put in financial bids for air india acquisition

The transaction advisor will initially examine the bid before the recommendation is sent to the Cabinet for approval.

Air India is now all set for disinvestment as it has received final bids for acquisition. The airline, which is controlled by the Indian government, has been making huge losses since 2007, and this is the second time that the airline has been put for sale. The government is selling off its 100 percent stake in Air India, Air India Express, and 50 percent stake in Air India SATS Airport Services Private Ltd.

Tata Group, which was the original founder of the airline, is one of the strongest contenders of winning the bid. The Tata Group had founded the airline in 1932, which was later acquired by the Indian government in 1953. Tata Group also holds a majority stake in low-cost Airline, Air Asia India, and full-service carrier, Vistara. The second bid has come from the CEO of SpiceJet, Ajay Singh, which he has submitted in his personal capacity.

DIPAM Secretary TuhinPandey confirmed the bids saying, "Financial bids for Air India divestment received by Transaction Adviser. The process now moves to the concluding stage." The transaction advisor will initially examine the bid before the recommendation is sent to the Cabinet for approval.

"Bids have been completed. The government is evaluating the technical aspects of the bids received. We are very hopeful and looking forward to taking the whole process to its logical conclusion," said Civil Aviation Minister JyotiradityaScindia.