Tata joins the time-trial for Air India officially
The Disinvestment Ministry on Monday received an Expression of Interest filed by the Tata Group. The business group is now expected to submit its financial bid in the next 15 days from today. The Tata Group said to a prominent news channel that the recent movement made by the firm is just an expression of interest and not a financial bid and as the deadlines ended today so they had made their submissions today before 5PM.
The expected debt of the airlines is 60000 crore rupees and the selected bidder is expected to take up 23286 crore rupees debt of the airline. The remaining debt will be sent to a special vehicle purpose called Air India Assets Holding by the government. Based on the enterprise value i.e. calculation of its market capitalization, short-term and long-term debt and any cash on its balance sheet the disinvestment of Air India will occur. In 2018 due to absence of suitors the government also failed to sell the airline’s majority stake.
Tata Sons had first established Tata Airlines in 1932 so this suggests that Tata’s association with the Indian Aviation goes back a long time. The Tata Airlines was renamed as Air India in 1946 and it has been 67 years exact when the Tata’s exited Air India and in 1953 the Government of India took control of it.
In 2013 Tata Group started two airlines first Air Asia which is in partnership with Malaysia’s Air Asia and the second being Vistara Airlines which is also in partnership with Singapore Airlines.wants to
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