Tata Sons among multiple bidders in race to buy Air India

NEW DELHI: Tata Group is believed to have submitted an expression of interest (EoI) for the cash-strapped Air India on Monday. Multiple reports suggest that Tata Sons, which is the holding company of the Tata Group, is using its joint venture airline AirAsia India as a vehicle to make the initial bid. 

While Tata Group did not officially announce submitting the EoI, sources in the government confirmed the steel-to-aviation firm’s participation. “Multiple xpressions of interests (EOIs) have been received for strategic disinvestment of Air India. The transaction will now move to the second stage,” tweeted DIPAM secretary, without revealing any names.

It is not the first time that the Tata Group is seen as a serious bidder for the airline it had founded in October 1932. Since the government initiated the second round of AI’s divestment process earlier this year, many in the industry felt it would be best for the Tata’s to operate it and synergy it with Air Asia and Vistara.

Meanwhile, a consortium of US-based fund Interups Inc and over 200 employees of the airline has also submitted their respective EoIs.The EoI proposes 51 per cent stake under employees and the rest 49 per cent with Interups. Laxmi Prasad, chairman of Interups Inc, wrote on social media, “Dear All, wish us good luck - we are submitting our EOI for Air India — I bet we will be surprising one and all — This shall be our contributory dedication to our Mother India to keep our National Carrier and its employees across keep (sic) flying and soaring high!!” 

Prasad claims that his company holds 27,635 qualified retirement asset accounts owned by US-based non-residential Indians.The last date for the submission of EoIs was December. 14 The qualified bidders will now be invited to start bidding for the airline from 28 December.