The Centre has formally began the privatisation process for debt-laden Air India by putting up its entire 100 percent stake up for sale
Full-service carrier Vistara may explore opportunities to bid for Air India, according to a report in The Economic Times.
Vistara is a joint venture between the Tata Sons and Singapore Airlines, where the former is the majority shareholder.
The airline may consider bidding though a partnership with an investor or another airline, the report added. Moneycontrol could not independently verify the story.
The government, on January 27, formally began the privatisation process for debt-laden Air India by putting up its entire 100 percent stake up for sale.
Tata Sons declined to comment when approached by the newspaper.
The offer “does not seem worth rejecting”, a source told the publication.
“There is the emotional goodwill part to it too, considering that it was part of the Tatas initially (before the government nationalised Air India). It is too early though to make any blanket statement,” the source said.
“We have just received the documents and there are a lot of matters that need detailed consideration in terms of its financial status,” the source added.
The Tatas had founded Air India in 1932 and owned until it was nationalised in 1953.
This is the government’s second attempt to divest its stake in Air India. In the first attempt in 2018, it had put up 76 percent of Air India up for sale.
In this round, the government has offered its entire 100 percent stake in the flag carrier. The Centre has also revised other conditions such as lowering the debt that is to be transferred.The new owner of Air India will now be taking on a debt of Rs 23,286 crore as opposed to the earlier Rs 62,000 crore debt.