Air India Financial Bid Likely to Open Tomorrow

New Delhi: The financial bids for Air India are likely to be opened on Wednesday and the winning bid could be announced by October 15, CNBC-TV18 reported.

“Tatas are being seen as the front runners for Air India divestment,” sources told CNBC-TV18. The deadline for submission of financial bids for Air India ended on September 15. The government said that it received “financial bids” for Air India.

Tata Sons, another consortium of some AI employees and Interups, and Spicejet were in the process of taking over Air India initially when Expression of Interests was invited.

The proposal to award the Air India bid will need Home Minister-headed Group of Minister’s approval.

The winner will get control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas in addition to 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which provides cargo and ground handling services at major Indian airports.

Tatas were also the potential bidders when the government tried to sell a stake in Air India in 2001 and 2017.

Notably, Air India posted a net loss of Rs 3,836.78 crore in FY16, Rs 6,452.89 crore in FY17, Rs 5,348.18 crore in FY18, Rs 8,556.35 crore in FY19 and Rs 7,982.83 crore in FY20 as per provisional figures.

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