INSUBCONTINENT EXCLUSIVE:
Bloomberg had reported earlier that salt-to-software conglomerate would re-acquire the national carrier more than half a century after
ceding control to the government
"Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect," the finance
In December 2020, the government had invited expression of interest for the divestment of Air India
Four bidders had entered the race to take over the beleaguered airline, but Tata Group and Spicejet CEO Ajay Singh were the only ones to
make it to the final stage.This has been the second attempt by the PM Modi-led government to sell Air India
The centre had made an unsuccessful attempt to sell the ailing airline earlier in March 2018
However, its expression of interest to sell 76 per cent stake in Air India had no takers at that juncture due to concerns regarding the
airline's burgeoning debt.Air India has accumulated losses of over Rs 70,000 crore and the government loses nearly Rs 20 crore to run the
national carrier every day, according to reports
The beleaguered airline, which one ruled the India skies, began to lose ground with the advent of private carriers in the 1990s and the
emergence of no-frill airlines in the mid-2000s
The merger with the state-owned domestic airline Indian Airlines in 2007 proved to be the final nail in the coffin, for Air India.But
despite its precarious finances, Air India still controls more than 4,400 domestic and 1,800 international landing and parking slots at
domestic airports, and 900 slots overseas
And the winning bidder will not only hold 100 per cent stake in Air India and its low-cost arm Air India Express, but also a 50 per cent
stake in ground handling company Air India SATS Airport Services Private Limited (AISATS).
