New Delhi: The government has commenced the process of inviting financial bids for the sale of Air India, with the deal expected to be completed by September this year.
Tata Group was among several companies that had put in initial bids to buy the loss-making national carrier in December last year.
The government is selling its entire 100 per cent stake in Air India, which has been in losses ever since its merger with domestic operator Indian Airlines in 2007.
The airline, which started as a mail carrier in 1932, will give a successful bidder control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.
Besides, the bidder would also get 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which provides cargo and ground handling services at major Indian airports.
With previous attempts since 2017 failing to get any significant interest, the government has this time sweetened the deal by giving freedom to potential suitors to decide how much of the airline’s debt they want to take on as part of the transaction.
Previously, the bidders were required to take over the entire Rs 60,074 crore debt.
Last month, Civil Aviation Minister Hardeep Singh Puri said the government will keep Air India running till it gets divested and there is no choice but to either “privatise or close” the debt-laden airline.
“We are looking at another timeline now, what is called data room for prospective bidders to look at… that is opened up, 64 days for the financial bids to come in. After that it is the question of taking a decision and handing over the airline,” Puri said.
“…There is no choice, we either privatise or we close the airline. We run a loss of Rs 20 crore every day despite Air India making money now. Because the mismanagement has resulted in a cumulative debt of Rs 60,000 crore,” he added.
(With inputs from PTI.)
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