Active Stocks
Tue Apr 23 2024 15:59:47
  1. Tata Steel share price
  2. 161.10 -0.46%
  1. Tata Motors share price
  2. 986.60 1.34%
  1. NTPC share price
  2. 346.90 1.12%
  1. Bharti Airtel share price
  2. 1,342.30 3.38%
  1. HDFC Bank share price
  2. 1,507.20 -0.34%
Business News/ Companies / News/  Tatas emerge as winning bidder for Air India: Report
BackBack

Tatas emerge as winning bidder for Air India: Report

Tata Sons Ltd, the group holding company that controls Jaguar Land Rover and owns a majority stake in AirAsia India, submitted a bid for Air India earlier this month

An Air India Ltd. aircraft taxis past other aircraft operated by the airline at the Indira Gandhi International Airport in New Delhi, India (Bloomberg)Premium
An Air India Ltd. aircraft taxis past other aircraft operated by the airline at the Indira Gandhi International Airport in New Delhi, India (Bloomberg)

A panel of ministers accepted a proposal recommending Tata Sons's bid for debt-laden state-run airline Air India, Reuters quotes Bloomberg News as reporting.

Tata Sons Ltd, the group holding company that controls Jaguar Land Rover and owns a majority stake in AirAsia India, submitted a bid for Air India earlier this month. The other bidder is SpiceJet Ltd. owner Ajay Singh in his personal capacity.

Indian govt refuted the news, “reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect."

"Media will be informed of the Government decision as and when it is taken," the Department of Investment and Public Asset Management (DIPAM) Secretary said in a tweet. 

Proceeds from Air India’s sale will be a critical source of revenue to plug the government’s widening budget deficit and as it looks to spur the pandemic-hit economy.

Two previous attempts to offload the airline failed. In 2001, Singapore Airlines Ltd. dropped its bid for a stake in Air India, citing political opposition as one of the reasons. In 2018, IndiGo, India’s biggest airline, pulled out of the running, saying it didn’t have the means to buy the carrier in its entirety and make it profitable.

Despite the mounting debt and losses, Air India has some lucrative assets, including valued slots at London’s Heathrow airport, a fleet of more than 100 planes and thousands of trained pilots and crew.

Air India, originally called Tata Airlines, was established in 1932 by the legendary industrialist and philanthropist J.R.D. Tata, who was also India’s first licensed pilot. It was nationalized around the time of India’s independence in 1947.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 01 Oct 2021, 11:36 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App