Tata Sons has emerged as the top bidder for Air India giving flight to the group’s civil aviation ambitions. Tata group had bid against debt-strapped SpiceJet’s promoter Ajay Singh. Singh had bid in his individual capacity.
The selection of Tata Sons to lead Air India may seem like history coming full-circle as it was the same group that built India’s first airlines in 1932 and called it the Tata Airlines.
The winning bidder would win control of Air India’s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas, including London’s Heathrow Airport.
It would also get 100% of the low-cost arm Air India Express and 50% of AISATS, which provides cargo and ground handling services at major Indian airports.
The government loses nearly 200 million rupees every day to run the national carrier, which has accumulated losses of over 700 billion rupees ($9.53 billion), officials have said.
Air India, originally called Tata Airlines, was established in 1932 by the legendary industrialist and philanthropist J.R.D. Tata, who was also India’s first licensed pilot. It was nationalized around the time of India’s independence in 1947.
(With inputs from agencies)
