Tata Sons have won the bid debt-laden national carrier Air India. Bloomberg News reported citing unidentified sources on Friday morning. The report claimed that a committee of ministers accepted an urgent proposal from the salt to software conglomerate. Yesterday, the government began evaluation bids for the Maharaja. Along with Tata Group, national airline SpiceJet Ajay Singh has also made an offer for the airline. The evaluation of bids was done against an undisclosed reserve price. With the Tata Group getting its hands on Air India, it marks the airline's return to Tatas after a 68-year gap.
The report indicated that the deal is expected to be announced in the next few days. The plan to sell the Maharaja has been in the offing for years now, and many governments are trying to find a buyer for the cash-intensive airline. Air India has debts of over Rs 60,000 crore. The debt-laden airline has a solid fleet of 127 jets that controls 50.64% of the international market share when clubbed with AIXL, among Indian airlines. Air India currently serves 42 international destinations.
The successful sale of Air India will also help the BJP-led NDA government move towards a divestment program as it plans to privatize several state assets, in an effort to bridge the budget deficit.
Air India was started by the Tatas in 1932 as Tata Airlines. The same was sold to the government in 1953 by the conglomerate.
Source: Financial Express
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