Tata Group / SpiceJet to buy Air India: only two companies in queue to buy government airlines, other applications rejected
Air India airlines, only two companies in queue to buy government airlines Tata group and spice jet
Only the Tata group and private airline SpiceJet are left in the queue to buy the government -run airline Air India. Applications from other companies have been rejected. Sources familiar with the matter have given this information. According to sources, the Expression of Interest (EoI) of other companies has been rejected at the valuation level. Many companies had filed EoI to buy Air India.
Transaction Advisor in contact with interested buyers
According to sources, Air India's Transaction Advisor is in touch with interested buyers. Transaction advisors are answering questions from interested buyers. Sources say that the qualified buyers will be informed only after the government is satisfied. Apart from Tata Sons and SpiceJet, joint ventures of Tata Sons and Interps Inc of New York are also keen to buy Air India. ETERPS Inc. is a non-resident Indian (NRI) group of investors from the US and Europe.
Many companies had applied
Many companies had submitted EoI to buy Air India. This information was given by Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM). The AI sales process is divided into two phases. In the first phase, EoI has been sought from interested companies. On the basis of merit, successful EoIs will be selected. In the second phase, successful buyers will be given a Request for Proposal (RFP). The entire sale process of AI will be transparent.
Air India employees also applied
A group of 209 former employees also applied to buy the government -run airline Air India. Apart from this, Essar Group, Pawan Ruia's company Dunlop and Falcon Tires also deposited EoI to buy Air India. Its deficit is expected to be 10 thousand crore rupees in the financial year 2020-21. Due to which the valuation of the company may decrease. This may make the government more difficult to sell Air India.
Trying to sell Air India for 20 years
The attempt to sell Air India has been going on for a long time. It has been sold since 20 years ago. At that time there was talk of selling 20% stake. However, it plans to sell its entire stake at this time. A lot of companies have shown interest in it so far. But due to the conditions of the government and its huge debt, no buyer is coming. The Tata group is still showing interest in buying it. Because it was the Tata group that started it. The problem with the Tata group is that it is already a partner in Air Asia and Vistara.
There were plans to sell 74% in 2017
In 2017, the government was selling 74% stake in Air India. But later it was increased to 100%. Along with this, the government is also selling the entire stake in Air India Express. Air India has a debt of Rs 38,366 crore. While Air India owes Rs 500 crore to government departments. Air India has a total assets of 46 thousand crores rupees. It consists of land, building, fleet and other assets.