The Tatas could get back to running Air India close to six decades after the Maharaja was taken away from them.
Tata Sons, the holding arm of the Tata Group, has submitted an Expression of Interest for AI. Another EoI has been submitted by Air India Employees along with Interups AI. These were the two ‘confirmed’ EoIs received on Monday when the deadline for submission of interest lapsed. Tatas already have a stake in a full-service airline, Vistara, and a low-cost carrier, AirAsia India. Tata’s bid is supposed to have been submitted through AirAsia, although this could not be immediately confirmed.
In a tweet, the Ministry of Finance merely said multiple EoIs had been received for the strategic divestment of AI.
AI came into being in 1946 when Tata Airlines changed its name to Air India. In 1953, the government nationalised Air India and eight other airlines into Indian Airlines Corporation. Laxmi Prasad, Chairman, of Interups AI, the other confirmed bidder told BusinessLine, “We are proposing Air India Limited to continue as is with employees to own 51 per cent and the Interups NRI group to own 49 per cent capital completely invested by NRIs.”
Interups AI has over 27,500 qualified asset accounts held by US-based NRIs.
Meenakshi Mallik, AI’s Commercial Director, said that 219 employees, representing a cross section of the airline’s staff members, are part of the consortium.
Submission of hard copies
The next step in AI’s divestment will be to give the interested parties 15 days to submit hard copies in case the bid has come by e-mail. The EoIs will then be evaluated and qualified bidders informed. The government will then seek financial offers from the qualified bidders.
AI’s divestment began in January with the government seeking to sell 100 per cent of its equity share capital in the airline, including Air India’s 100 per cent shareholding in AI Express Ltd, and the 50 per cent stake in Air India SATS Airport Services Pvt Ltd.