Tatas may consider buying controlling stake in Air India: Report

Air India

The Tata Group may consider buying a controlling stake in debt-laden Air India, according to a report in ET Now.

The channel quoted sources as saying that Tata Group chairman N Chandrasekaran has held informal talks with the government. It added that the Tata Group may bring Singapore Airlines on board to buy a minority stake if the national carrier is fully privatised.

The development comes at a time when the aviation ministry is exploring ways to revive Air India.

According to media reports, there have been differences between ministries over whether divestment or privatisation should be done in such a way that the private entity should be given 51 percent stake or whether the government should retain the management of Air India.

Minister of State for Aviation Jayant Sinha said on Tuesday that the Cabinet would take the final call on the issue.

Air India, which has more than Rs 52,000 crore debt burden, is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.

Government think-tank NITI Aayog has recommended to the Prime Minister's Office a "complete" privatisation of the airline.

If the Tatas do end up buying Air India, it will be a homecoming of sorts. It was in 1932 that Tata Group had launched Tata Airlines. Later in 1948, the government and the group joined hands to start flying abroad.

Five years later, the government decided to nationalise all aviation businesses in the country.