The initial bids to buy loss-making Air India were also included in the bid made by the Tata Group in December last year.
The deal will be completed by September
The government has started the process of inviting financial bids for the sale of state-run Air Line company Air India and the deal is expected to be completed by September, according to sources. The initial bids to buy loss-making Air India were also included in the bid made by the Tata Group 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 that the deal has now gone into the phase of financial bids and is expected to be completed by September. The government is selling its entire 100 percent stake in Air India.
The company is in loss after merger with Indian Airlines
The airline has been incurring losses since its merger with domestic operator Indian Airlines in 2007. The stake sale process was delayed due to the COVID-19 Pandemic and the government extended the deadline for submission of initial bids five times.
60 thousand crore loan on the company
Air India has a total debt of 60,000 crore rupees. Civil Aviation Minister Hardeep Puri had said last month that there is no other way than to privatize Air India or shut it down.
Those who buy Air India will get this benefit
The successful bidder of this airline will get control of 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 per cent stake in its subsidiaries Air India Express and AISATS, a common unit for cargo and passenger goods loading and unloading.
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