Tata Sons Win Airindia Bid
Sources indicated that the bid submitted by Tata Sons was Rs 3,000 crore more than the minimum reserve price set by the government committee.
Top sources from the Ministry of Civil Aviation said all formalities for the Air India disinvestment process will be completed by December 2021.
ormer Air India director Jitendra Bhargava recently told Bloomberg TV that the Tatas are will get a nod from the government as they have the capability to pour in a large amount of money required to revamp the national carrier.
However, with the advent of private carriers in the 1990s, and then a rush of low-cost, no-frills airlines in the mid-2000s, Air India lost its edge in both domestic and international markets. The carrier, known for its Maharaja mascot, suddenly wasn't the only option for flying overseas and its reputation for impeccable service and hospitality began to ebb.
Gulf carriers, including Emirates Airline and Etihad Airways PJSC, also began to offer seamless, and cheaper, connections to Europe and the U.S. via their hubs in Dubai and Abu Dhabi, hurting Air India even further.
After Air India merged with state-owned domestic operator Indian Airlines Ltd. in 2007, losses started to mount and by 2013, the country's then-Civil Aviation Minister said privatization was key to its survival. In 2017, the government approved that route and a committee was set up to start the process.
This most-recent sale attempt hasn't been easy either. IndiGo, the only airline to have publicly shown interest in buying parts of the carrier, dropped out of the reckoning in 2018, saying it didn't have the wherewithal to acquire Air India in its entirety and make it profitable.
Tata Sons Pvt. is set to take over ailing Air India Ltd. again, more than half a century after the country's biggest conglomerate ceded control to the state, ending the government's hold over an airline that for decades defined the lofty ambitions of a newly independent nation.
0 Comments