Tata Sons reportedly wins bid to takeover the ‘Maharaja’

• The government has reportedly accepted Tata Group’s proposal to acquire debt-laden state run airline Air India.
• Reports had said that SpiceJet founder Ajay Singh was also among the bidders.
• Tatas may now get control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots at airports overseas.

Finally, Air India has a rescuer -- Tata Sons. It may be acquiring the debt-laden state run airlines soon. Tata Sons has won the bid for national carrier Air India, said a report by Bloomberg. Reportedly, Tata Sons had proposed the highest price to take over the airlines.

SpiceJet founder Ajay Singh was also among the bidders, as per reports. Business Insider has reached out to Tata Sons for comments. We will be updating the story if and when we receive a response.

Later in the day, the government came out with a clarification saying ‘media reports indicating approval of financial bids by government of India in the Air India divestment case are incorrect.’

Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect. Media will be informed of the Government decision as and when it is taken. pic.twitter.com/PVMgJdDixS

— Secretary, DIPAM (@SecyDIPAM) October 1, 2021

The stake sale process in Air India faced several delays due to the COVID-19 pandemic. Reportedly, in April this year, the government asked potential bidders to put in financial bids. The last day for placing financial bids was September 15.

Tatas may now get control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots at airports overseas.

Interestingly, the airline was founded by J. R. D. Tata, the late former chairman of the Tata Group, as Tata Airlines in 1932.

Air India will be an addition to the Tata Group’s airline business as they are already operating Vistara airlines, a joint venture with Singapore Airlines.

(Developing story)

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