Government started this important work for the sale of Air India, the deal will be completed by September
The government has started the process of inviting financial bids for the sale of national carrier Air India and according to sources the deal is expected to be completed by September. The Tata group’s bid also included among initial bids to buy loss-making Air India in December last year. Sources said that after analyzing the initial bids, qualified bidders were given access to the virtual data room (VDR) of Air India, after which investors’ questions would be answered.
Sources said the deal has now gone into the financial bids phase, and is expected to be completed by September. The government is selling its entire 100 percent stake in Air India. The airline has been at a loss since its merger with domestic operator Indian Airlines in 2007. The stake sale process was delayed due to the Covid-19 epidemic and the government extended the deadline for submission of initial bids five times.
60 thousand crores debt on the company
The successful bidder of this airline will have control over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots abroad. The auction also includes a 50 percent stake in its subsidiary, Air India Express, which provides cheap services, and AISATS, a common unit for cargo and passenger loading and unloading. The situation has become thin due to the total accumulated tax burden of Rs 60,000 crore on the company. Civil Aviation Minister Hardeep Puri had said last month that there is no other way than to privatize Air India or shut it down.
