Tata Sons has been selected as the winning bidder for the debt-laden state-run airline Air India, Bloomberg reported on Friday. A panel of ministers accepted a proposal from officials recommending the salt-to-software conglomerate ahead of an offer from Ajay Singh, promoter of India's airline operator Spicejet Ltd.
The proposed handover is a key victory for Prime Minister Narendra Modi, who has embarked on a bold privatization plan to plug a widening budget deficit.
While the EoI (expression of interest) clearly states that the national carrier will go to the highest bidder, the government will also consider the financial condition of the prospective buyer before finalising the winner
On September 15, Tata Sons and SpiceJet Chairman Ajay Singh officially submitted their final bid to buy India's flag carrier Air India, raising hopes that the disinvestment process of the loss-making airline will be completed in this financial year. Besides 100 per cent of its stake in the state-owned national airline, the potential buyer will get Air India's 100 per cent of AI Express - a low-cost airline - and 50 percent of Air India SATS Airport Services. The idea of government selling its stakes in Air India - The flying 'maharajah' which was once among Asia's top-most airlines - is not of recent origin. Following is a 10-point primer on the Air India saga