Air India has a new owner, Tata Group wins the bid: Report - Economic Times

Tata Group is likely to have emerged as the winner of the Air India bid with the panel of ministers giving its final approval, Bloomberg reported.

The formal announcement is likely in coming few days. This will be a milestone in government's privatisation drive and will return Air India to its original owners after it was nationalised in 1953.

Tatas are believed to have submitted a higher bid than rival Ajay Singh of SpiceJet. The Tata bid is about Rs 3,000 crore higher than the reserve price set by the government and about Rs 5,000 crore more than the bid by Singh, a report in The Economic Times cited sources as saying.

Tatas had roped in more than 200 personnel to make sure that the Maharaja flew back home safely. These included M&A specialists from units such Vistara, AirAsia India, Tata Steel and Indian Hotels, apart from the Tata Sons M&A team and external auditors, a report in this newspaper cited sources as saying.

The return of Air India is a historic and emotional moment for Ratan Tata, who himself is a trained pilot, just like JRD Tata, for whom the high standards offered by Air India were of paramount concern. JRD led Air India as its chairman and served as director on the board of Indian Airlines on government's invitation.

The Tatas are believed to have sought a number of concessions from the government including clearing of lease obligations worth Rs 11,000 crore for 21 Boeing Dreamliners, relief from paying medical and retiral benefits to those already retired and clearing all pending employee arrears.

The return of Air India will significantly bolster Tata Group's presence in Indian aviation space. The Tatas run Vistara, a full-service carrier, as a joint venture with SIA and Air Asia India. It also runs a budget carrier, Air Asia India, a joint venture with Air Asia Bhd.

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Air India has a new owner, Tata Group wins the bid: Report - Economic Times
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