promoter Ajay Singh has partnered with Ras Al Khaimah Investment Authority and Ankur Bhatia, promoter of Delhi-based Bird Group, to bid for a 100% stake in the national carrier Air India.
Sources said both Singh and Bhatia have bid in their personal capacity. “They are likely to together hold a majority stake in Air India, if they get the airline,” said a person close to the development, who did not want to be identified. ET was the first to report last month that Singh along with two other investors have shown interest in Air India.
An email sent to Ras Al Khaimah Investment Authority’s India office and messages sent to Singh and Bhatia did not elicit any response till the time of going to press.
Singh had co-founded SpiceJet in 2005. Subsequently, Wilbur Ross acquired control of the airline, which was then sold to Kalanithi Maran in 2010. Singh bought back the ailing airline for Rs 2 in 2015 and is credited with turning it around. Bhatia is an executive director at Bird Group which has interests in hospitality, ground handling and other businesses. The Singh-led consortium had submitted an Expression of Interest (EoI) for Air India in December last year and has been shortlisted as a potential bidder. The other contender is the Tata Group, which is the frontrunner.
Financial Bid Process Likely to Start by March-end
While the EoI was submitted by Tata Sons, the group is likely to bid through Air Asia India. Singapore International Airlines, the Tatas’ joint venture partner in Vistara, does not want to be a party to the bid.
Kolkata-based businessman Pawan Ruia, through another consortium, and an Air India employee consortium had also submitted EOIs for the national carrier. But they have not been shortlisted for the next stage.
The government has been trying to privatise Air India for a long time. The current process got delayed due to the Covid-19 pandemic. The process for inviting financial bids is likely to start by March-end and the target is to complete the sale process by the end of this calendar year.
The government had failed to get any bid for Air India in 2018, when it was trying to sell a 76% stake in the airline. It then decided to offload 100% of Air India and its low-cost international subsidiary Air India Express, as well as 50% in ground-handling unit AISATS.
Air India is set to make a record loss of Rs 10,000 crore in the current financial year. The airline’s debt has come down to just over Rs 23,000 crore, after the government shifted its working capital debt of over Rs 30,000 crore to a state-owned special purpose vehicle called AI Asset Holdings Ltd. The government has also sweetened the offer this time, allowing suitors to base their bids on enterprise value, where the government will take 15% of the bid value and the rest will be used to retire debt, instead of the government getting 100% of it.
Sources said both Singh and Bhatia have bid in their personal capacity. “They are likely to together hold a majority stake in Air India, if they get the airline,” said a person close to the development, who did not want to be identified. ET was the first to report last month that Singh along with two other investors have shown interest in Air India.
An email sent to Ras Al Khaimah Investment Authority’s India office and messages sent to Singh and Bhatia did not elicit any response till the time of going to press.
Singh had co-founded SpiceJet in 2005. Subsequently, Wilbur Ross acquired control of the airline, which was then sold to Kalanithi Maran in 2010. Singh bought back the ailing airline for Rs 2 in 2015 and is credited with turning it around. Bhatia is an executive director at Bird Group which has interests in hospitality, ground handling and other businesses. The Singh-led consortium had submitted an Expression of Interest (EoI) for Air India in December last year and has been shortlisted as a potential bidder. The other contender is the Tata Group, which is the frontrunner.
Financial Bid Process Likely to Start by March-end
While the EoI was submitted by Tata Sons, the group is likely to bid through Air Asia India. Singapore International Airlines, the Tatas’ joint venture partner in Vistara, does not want to be a party to the bid.
Kolkata-based businessman Pawan Ruia, through another consortium, and an Air India employee consortium had also submitted EOIs for the national carrier. But they have not been shortlisted for the next stage.
The government has been trying to privatise Air India for a long time. The current process got delayed due to the Covid-19 pandemic. The process for inviting financial bids is likely to start by March-end and the target is to complete the sale process by the end of this calendar year.
The government had failed to get any bid for Air India in 2018, when it was trying to sell a 76% stake in the airline. It then decided to offload 100% of Air India and its low-cost international subsidiary Air India Express, as well as 50% in ground-handling unit AISATS.
Air India is set to make a record loss of Rs 10,000 crore in the current financial year. The airline’s debt has come down to just over Rs 23,000 crore, after the government shifted its working capital debt of over Rs 30,000 crore to a state-owned special purpose vehicle called AI Asset Holdings Ltd. The government has also sweetened the offer this time, allowing suitors to base their bids on enterprise value, where the government will take 15% of the bid value and the rest will be used to retire debt, instead of the government getting 100% of it.
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1 Comment on this Story
 | Pankaj Sharma16 minutes ago This airline is plauged with corrupt ministers, corrupt staff and tons of losses. Who will buy it ? It's not worth a penny. During UPA, Praful Patel (Sharad, as he is master of Praful Patel) gifted all the lucrative routes to Jet Airways, for nothing. It's compulsory for all government employees to avail LTC and travel on every official tour by AIR INDIA only, just image, had not that compulson on government employees, where the losses would have gone ? And this losses are inspite of pumping hugh amout of taxpayers money, i spite of this, it has. tons of debt and employees too good for nothing. I have travelled number of times, I can bet the government employees be it on Air Port or on flight are unparallelly worst in the world. On Airport thesr people behave like gundas and threaten to the passangers to not to board tje fligbt likw goons, and make passangers say sorry for their own mistakes. IF ANYONE ONCE TRAVEL BY AIRLINE, I AM SURE THEY WILL SWEAR NOT TO TRAVEL AGAIN BY AIR INDIA. |