Bloomberg reported that Tata Sons is expected to have appeared as the winner of the Air India bid, with the panel of ministers giving its final endorsement. The formal statement is likely to arrive in the coming days. This is a breakthrough in the government’s privatisation initiative and will give back Air India to its owners after nationalising it in 1953.
Tata Sons is said to have offered a higher bid than opponent Ajay Singh of SpiceJet. The Tata bid is around Rs 3,000 crore, more elevated than the amount set by the government and over Rs 5,000 crore more than the bid offered by Singh, a report in The Economic Times cited sources as saying.
Tatas had brought in over 200 employees to make sure that the Maharaja flew back home securely. These incorporated M&A specialists from sections such as Vistara, AirAsia India, Tata Steel and Indian Hotels, aside from the Tata Sons M&A team and external auditors.
The arrival of Air India is a critical and historical significance for Ratan Tata, who is a trained pilot himself, just like JRD Tata, for whom the high criteria proposed by Air India were of utmost concern. JRD directed Air India as its chairman and worked as a director on the committee of Indian Airlines at the government’s offer.
The Tatas are thought to have attempted several permissions from the government, including clearance of lease responsibilities worth Rs 11,000 crore for 21 Boeing Dreamliners, aid from paying medical and retiral advantages to those retired and clearing all ominous employee arrears.
The arrival of Air India will significantly support Tata Group’s appearance in the Indian aviation space. The Tatas operate Vistara, a full-service carrier, a shared enterprise with SIA and Air Asia India. It also operates a budget carrier, Air Asia India, a joint enterprise with Air Asia Bhd.