InvestorQ : Is it correct that the Tatas have won the bid for Air India?
Lavanya Subramanian made post

Is it correct that the Tatas have won the bid for Air India?

Anamika Sodhani answered.
12 months ago

While the press is rife with such reports, the official confirmation from the government is yet to come. In fact, Commerce and Industry Minister Mr. Piyush Goyal has clarified that the government had not arrived at any decision on Air India sale in terms of the final winner of the bid. Goyal added that the entire bidding and the decision on winners will only be made in accordance with the adopted process for the same.

Even the DIPAM Secretary, Tuhin Kanta Pandey, has consistently maintained that the Centre had not approved any financial bid for Air India. Incidentally, Tata Sons was one of the bidders for Air India along with Ajay Singh, the CEO of SpiceJet. In addition, there are also a couple of private equity funds in the fray. The government will only transfer part of the debt of Air India to the eventual winner of the bid.

For the Tatas, the purchase of Air India will be a reversal of roles because it was originally called Tata Airlines. Incidentally, Tatas plan to combine Air Asia, Vistara and Air India (if they win the bid) to create a sizable airline entity in India with 27% domestic market share. It then homes to offer a complete array of low cost and full service options and offer a proper challenge to Indigo Airlines, the market leader.