Air India divestment | Tata Group, Singapore Airlines ‘move closer’ to make joint bid: Report

The Tata Group may be ‘moving closer’ to partner with Singapore Airlines to make an offer for Air India, according to a report by The Times of India.

A deal structure is said to be in the works and the Tata Group is likely to merge Air India Express with AirAsia India, the report said.

Tata Sons and Singapore Airlines own full-service airline Vistara as a joint venture (JV). Tata Sons owns a 51 percent stake in AirAsia India while Malaysia-based AirAsia Berhad owns the remaining holding.

The government opened the formal bidding process for Air India on January 27 offering its entire 100 percent stake, putting its entire 100 percent stake in the airline on sale.

Moneycontrol could not independently verify the report.

The Tata group has approached AirAsia CEO Tony Fernandes for his green signal on the Air India Express acquisition, sources told TOI.

The non-compete clause in the agreement between AirAsia and Tata Sons does not permit either party from being involved in another low-cost airline.

Meanwhile, Tony Fernandes stepped aside as AirAsia CEO on February 3 for at least two months as Malaysian authorities investigate allegations of Airbus bribing the airline for an aircraft order.

Senior company executive Tharumalingam Kanagalingam has been appointed as acting CEO.

Fernandes was also recently summoned by the Enforcement Directorate (ED) in relation to charges of criminal conspiracy and money laundering.

The Tatas founded Air India in 1932 as “Tata Air Services” and owned it till it was nationalised in 1947.