Tata Sons emerges top bidder for Air India

[Kool_SRG]

 

The Finance Ministry, Civil Aviation Ministry and DPIIT likely to issue a formal notice soon

Tata Sons has emerged as the top bidder for Air India giving flight to the group's civila aviation ambitions 

 Tata group had bid against debt-strapped SpiceJet’s promoter Ajay Singh. Singh had bid in his individual capacity.

With financial bids coming in, Air India disinvestment moves to the final stage

Sources said that the bid placed by the Tatas was “way higher” than the offer made by Singh. BusinessLine was given to understand that the bid needs approval from the panel set up by the government which is led by home minister Amit Shah. 

A Tata Sons spokesperson declined to comment on the matter. However, top sources BusinessLine spoke with said that the government agencies, along with the Finance Ministry, Civil Aviation Ministry and DPIIT may issue a formal notice soon.

The state-owned airline was started by JRD Tata before it was taken over by the Government of India. 

But it wont be easy for the Tata group to turn around the debt-laden state carrier, even though there are synergies between group companies and the Indian airline.

Tatas will need to put in tens of thousands of crores of capital to clean up the balance sheet; pay off liabilities that come with the airline; and to fix, grow, and bring the airline to a point where it can be a meaningful and an effective global competitor. 

To be fair, Air India has good assets, infrastructure, slots and bilateral agreement. If they win the bid, Tatas will get access to top notch MRO infrastructure of Air India and its real estate.

The Tatas have companies like Tata engineering, Taj Sats and IHCL among others which can benefit with Air India becoming a group entity.

 

Bloomberg adds:

First flight

Established by legendary industrialist and philanthropist J.R.D. Tata, who was India’s first licensed pilot, the airline originally flew mail in the 1930s between Karachi in then-undivided, British-ruled India and Bombay, now known as Mumbai.

Once it turned commercial and went public in the 1940s, Air India quickly became popular with those who could afford to take to the skies. Its advertisements featured Bollywood actresses and passengers were treated to champagne and porcelain ashtrays designed by surrealist painter Salvador Dali.

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 US via their hubs in Dubai and Abu Dhabi, hurting Air India even further.

Disinvestment plan

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.

Ultimately that time around there were no bidders and the government had to sweeten the deal by allowing suitors to decide how much of the carrier’s debt they wanted to take on. Even so, politicians belonging to Modi’s own party and unions have resisted the plan.

For Tata Group, Air India adds a third airline brand to its stable, considering the conglomerate already holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. The Economic Times newspaper had previously reported that Tata may emerge as the winning bidder.

Air India -- which hasn’t turned a profit since its 2007 merger with Indian Airlines and is now saddled with a debt of around ₹600,000 crore ($8.1 billion) -- does have some attractive assets, including prized landing and parking slots at London’s Heathrow airport, which may help Vistara lure business travelers with direct flights to Europe.

The purchase, once it goes through, will be a test of the group’s aviation acumen. Tata Group has faced criticism for not running its existing aviation businesses efficiently, even though they represent a tiny portion of overall revenue.

Cyrus Mistry, who succeeded Ratan Tata as chairman of the conglomerate but was later ousted in India’s most high-profile boardroom coup, raised the alarm in an October 2016 letter, saying he pushed backed against both airline ventures.

[Kool_SRG]

Tatas emerge as winning bidder for Air India: Report

 

A panel of ministers accepted a proposal recommending Tata Sons's bid for debt-laden state-run airline Air India, Reuters quotes Bloomberg News as reporting.

Tata Sons Ltd, the group holding company that controls Jaguar Land Rover and owns a majority stake in AirAsia India, submitted a bid for Air India earlier this month. The other bidder is SpiceJet Ltd. owner Ajay Singh in his personal capacity.

Proceeds from Air India’s sale will be a critical source of revenue to plug the government’s widening budget deficit and as it looks to spur the pandemic-hit economy.

Two previous attempts to offload the airline failed. In 2001, Singapore Airlines Ltd. dropped its bid for a stake in Air India, citing political opposition as one of the reasons. In 2018, IndiGo, India’s biggest airline, pulled out of the running, saying it didn’t have the means to buy the carrier in its entirety and make it profitable.

Despite the mounting debt and losses, Air India has some lucrative assets, including valued slots at London’s Heathrow airport, a fleet of more than 100 planes and thousands of trained pilots and crew.

Air India, originally called Tata Airlines, was established in 1932 by the legendary industrialist and philanthropist J.R.D. Tata, who was also India’s first licensed pilot. It was nationalized around the time of India’s independence in 1947.

Tata Sons likely wins bid for Air India, say sources

Tata Sons has emerged victorious bidding for the national carrier Air India as an Amit Shah-led panel approved the bid, sources said. However, an official comment is awaited.

Tata Sons has likely emerged victorious bidding for the national carrier Air India as an Amit Shah-led panel is likely to have approved the bid, sources said. However, an official comment is awaited.

 

The government aims to completely hand over Air India to new owners by December 2021, sources said.

 

Air India Specific Alternative Mechanism (AISAM), the panel formed for the divestment of Air India, under the leadership of Home Minister, Amit Shah is expected to meet soon to approve the winning bid for Air India, sources said.

 

The government had begun an evaluation of the financial bids on Thursday, PTI had reported. The panel had received bids from Tata Group and SpiceJet founder, though the former was a leading contender.

 

Tatas were also the potential bidders for the airline when the government had tried to sell a stake in the carrier in 2001 and 2007.

 

The Tata Group had founded Air India as Tata Airlines in October 1932, but it was nationalized in 1953. Meanwhile, Tatas partnered with Singapore Airlines to operate a premier full-service carrier, Vistara.

[Ryzen_renoir]

Good , air india rightfully belongs to Tata's .

Ghar whapsi done right 

[Sword_KanthaRao]

Finally..! 
 

Almost 1000 slots at various international airports. If Tata/Vistara can tap them, Then Air India turn around can happen in 4-5 years. Presently there is no other carrier who can fly beyond 6 hours international.

AI’s 787 fleet could just come in hand for Vistara. They recently got clearnece to fly to JFK/LHR/CDG and plans to increase their international presence to south east Asia and Far East.

[JackSeal]

4 hours ago, Kool_SRG said:

Tatas emerge as winning bidder for Air India: Report

 

A panel of ministers accepted a proposal recommending Tata Sons's bid for debt-laden state-run airline Air India, Reuters quotes Bloomberg News as reporting.

Tata Sons Ltd, the group holding company that controls Jaguar Land Rover and owns a majority stake in AirAsia India, submitted a bid for Air India earlier this month. The other bidder is SpiceJet Ltd. owner Ajay Singh in his personal capacity.

Proceeds from Air India’s sale will be a critical source of revenue to plug the government’s widening budget deficit and as it looks to spur the pandemic-hit economy.

Two previous attempts to offload the airline failed. In 2001, Singapore Airlines Ltd. dropped its bid for a stake in Air India, citing political opposition as one of the reasons. In 2018, IndiGo, India’s biggest airline, pulled out of the running, saying it didn’t have the means to buy the carrier in its entirety and make it profitable.

Despite the mounting debt and losses, Air India has some lucrative assets, including valued slots at London’s Heathrow airport, a fleet of more than 100 planes and thousands of trained pilots and crew.

Air India, originally called Tata Airlines, was established in 1932 by the legendary industrialist and philanthropist J.R.D. Tata, who was also India’s first licensed pilot. It was nationalized around the time of India’s independence in 1947.

Tata Sons likely wins bid for Air India, say sources

Tata Sons has emerged victorious bidding for the national carrier Air India as an Amit Shah-led panel approved the bid, sources said. However, an official comment is awaited.

Tata Sons has likely emerged victorious bidding for the national carrier Air India as an Amit Shah-led panel is likely to have approved the bid, sources said. However, an official comment is awaited.

 

The government aims to completely hand over Air India to new owners by December 2021, sources said.

 

Air India Specific Alternative Mechanism (AISAM), the panel formed for the divestment of Air India, under the leadership of Home Minister, Amit Shah is expected to meet soon to approve the winning bid for Air India, sources said.

 

The government had begun an evaluation of the financial bids on Thursday, PTI had reported. The panel had received bids from Tata Group and SpiceJet founder, though the former was a leading contender.

 

Tatas were also the potential bidders for the airline when the government had tried to sell a stake in the carrier in 2001 and 2007.

 

The Tata Group had founded Air India as Tata Airlines in October 1932, but it was nationalized in 1953. Meanwhile, Tatas partnered with Singapore Airlines to operate a premier full-service carrier, Vistara.

No use to India as TATA is a Persian company … I wish it should be acquired by Ambani or Adani group 

[LadiesTailor]

Edo okati chesi aa chetta flights padesi kottavi konandi ra babu…

[hotlantian]

AI losses are due to politicians foreign trips. Pratibha Patil alone incurred 8000 crores on her foreign trips no use. 

[Ryzen_renoir]

Proud nationalist spotted 

[JackSeal]

1 hour ago, hotlantian said:

AI losses are due to politicians foreign trips. Pratibha Patil alone incurred 8000 crores on her foreign trips no use. 

Foreign trips are mostly official visits weather it’s godi or prathibha patil… 8000crs lekka evadu cheppadu?

[Anta Assamey]

TATA vallu ichindi valla ke ammutunaru anamata... 

[Picheshwar]

1 hour ago, hotlantian said:

AI losses are due to politicians foreign trips. Pratibha Patil alone incurred 8000 crores on her foreign trips no use. 

 

5 minutes ago, JackSeal said:

Foreign trips are mostly official visits weather it’s godi or prathibha patil… 8000crs lekka evadu cheppadu?

WhatsApp lo 8000 car annaru mari

[futureofandhra]

2 hours ago, JackSeal said:

No use to India as TATA is a Persian company … I wish it should be acquired by Ambani or Adani group 

not all are idiots

they r patriots who keep their country over religion

[aakathaai789]

Indigo share price padataaniki kaaranam idhena aithe

[shamsher_007]

1 hour ago, hotlantian said:

AI losses are due to politicians foreign trips. Pratibha Patil alone incurred 8000 crores on her foreign trips no use. 

8k cr aaa?

r u sure abt this?

not nammable, @NiranjanGaaru baa ,is it true?

[futureofandhra]

1 minute ago, aakathaai789 said:

Indigo share price padataaniki kaaranam idhena aithe

anna jaggad afghanistan tho business doing antagaa

bejawada hub antaga