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Air India divestment: Tatas interested in buying stake, says Jayant Sinha

IndiGo had earlier written to the Ministry of Civil Aviation, expressing its interest to buy out Air India's flight operations

Press Trust of India  |  New Delhi 

Air India, flight, plane
The Air India logo is seen on the facade of its office building in Mumbai

The Tatas had formally shown an interest in Air India's stake sale, Union Minister of State for Civil Aviation said today.

The has given its nod for the disinvestment of Air India, which has a debt of over Rs 50,000 crore and is staying afloat on taxpayers' money.


"We have, of course, received from both as well as the Tatas indications of interest for the airline (Air India), and then, we have received formal indications of interest for the other aspects of the group. These are the formal indications we have received so far," Sinha told television channel CNBC TV18.

He said the was working in a time-bound manner to conclude the bidding process and that the process of receiving the expressions of interest as well as bids should take six to eight months.

Market leader had earlier written to the Ministry of Civil Aviation, expressing its interest to buy out Air India's flight operations, particularly its international services.

Ground services providers such as the Bird Group and Turkish company Celebi have also shown interest in acquiring the ground handling arm of the -- the Air Transport Services Limited (AIATSL).

Sinha also said the had appointed legal, transactional and asset valuer advisors for the purpose.

On June 28, the Cabinet Committee on Economic Affairs (CCEA) had given its agreement in-principle for the strategic disinvestment of and five of its subsidiaries.

Subsequently, an Air India-specific alternative mechanism was set up to guide the process.

The ministerial group is looking into the treatment of Air India's unsustainable debt, hiving off of certain assets to a shell company, demerger and strategic disinvestment of three profit-making subsidiaries, among other aspects.

First Published: Fri, December 01 2017. 08:21 IST
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