Air India divestment: Tata, Spicejet, Essar among bidders in race to buy national carrier

Salt-to-software conglomerate Tata Group was among "multiple" entities that on Monday put in preliminary bids for buying the government's stake in loss-making carrier Air India. "Multiple expressions of interest have been received for strategic disinvestment of Air India. The Transaction will now move to the second stage," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.

Zee Business sources have revealed that 4 companies have actually submitted expression of interest in Air India.

4 Companies have submitted EOI for Air India: 

Tata Group

Air India employees + Interups Inc (Consortium )

Essar Group

SpiceJet Ltd.

He, however, did not reveal either the identity of the bidders or the number of bids received for buying the national carrier.

Sources said Tata Sons, the holding company of the Tata Group, has put in an Expression of Interest (EoI) at the close of the deadline on Monday.

It was not, however, immediately clear if Tatas have bid alone or in consortium with an airline.

An official said transaction advisor will inform bidders before January 6, if their bids have been qualified.

Qualified bidders will then be asked to submit financial bids.

A group of more than 200 Air India employees have also submitted an initial bid for the carrier in partnership with a private financier, Business Standard newspaper reported earlier on Monday.

Prime Minister Narendra Modi`s government in January renewed its push to sell its entire interest in the loss-making airline, which has been kept aloft by a bailout since 2012.

An effort to auction a majority stake almost two years ago drew no bids, forcing the government to ease terms. It has also extended the deadline multiple times this year due to COVID-19 and further eased the terms to attract bidders.

The airline industry around the world has been hammered by a slump in travel due to restrictions aimed at containing the novel coronavirus.

Tata already operates two airlines in India - full-service carrier Vistara, which is in partnership with Singapore Airlines, and budget airline AirAsia India along with Malaysia`s AirAsia Group.

A successful bidder would win control of Air India`s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.

It would also get 100% of the low-cost arm Air India Express and 50% of AISATS, which provides cargo and ground handling services at major Indian airports, the bid document showed.

With inputs from PTI/Reuters