Last Updated: March 27, 2021, 1950 hrs

India’s Tata Group and SpiceJet have been shortlisted to bid for flag carrier Air India Ltd. An invitation for financial bids will be a progress form Prime Minister Narendra Modi’s government, moving toward the sale of an airline that’s surviving on taxpayer money.

The financial offers are expected to come in within 64 days from the date of request and the process is likely to be completed by May or June.

The government loses Rs 200 million ($2.8 million) everyday on the carrier, said Civil Aviation Minister Hardeep Singh Puri. “Now Air India will be 100 per cent disinvested as the choice now was between disinvestment or closing down because Air India is a first-rate asset but has an accumulated debt of Rs 60,000 crore. We need to wipe the slate clean.”

The new owner will be taking on a fleet of 121 aircraft in Air India’s fleet and 25 planes in Air India Express’ fleet. These exclude the four Boeing 747-400 jumbojet aircraft that the airline plans to transfer to its subsidiary Alliance Air, which is not a part of the current transaction. However, like the last attempt, the properties currently in use by Air India, including the Nariman Point building and the company’s headquarters near Connaught Place in New Delhi will be retained by the government.

Leave a Reply

Your email address will not be published.