Tata Group only contender for Air India ahead of deadline submission
Tata Group has emerged as the only contender to buy Air India, ahead of deadline submission. The deadline to submit Expression of Interest (EoI) is August 31, 2020.
The report said while the Tata Group may move forward with the bid, its joint venture airlines, Singapore Airlines, has backed out of the venture in light of the constraints amid the coronavirus pandemic.
In June, Centre had announced another extension of the last date for submission of expression of interest (EoI) in Air India, delaying the disinvestment process of the carrier further. This, was done mainly due to the Covid-19-led disruption.
The Tata Group already has a fair amount of presence in the aviation industry, and holds a 51 percent stake in Vistara, with the remaining 49 percent held by Singapore Airlines Limited.
Air India, which is up for divestment, has been in the doldrums much before the pandemic hit the economy. The airline, which was already in a precarious position with respect to financial woes, saw its condition worsen further amid the pandemic and its associated economic fallout.
The government, which had earlier in 2018 attempted in vain to sell Air India, had restarted the process in January. This time though, the government was willing to completely exit the airline. Earlier, only 75 percent of its stake was on offer.
To get more suitors, the Cabinet Committee on Economic Affairs (CCEA) on March 4 allowed non-resident Indians (NRIs) to own 100 percent stake in Air India.
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