New Delhi: The rumor in aviation circles is growing louder that the Tata group could be in the Air India cabin as early as the New Year, if it is the only eligible bidder for India’s national airline.
If Tata’s bid is submitted on or before the final submission date of August 31 and as viewed at this time, Tata is likely to be the only eligible bidder.
Thereafter, if Tata’s offer is deemed accepted, the 90-day period for the transfer will begin and end on November 30, or at the latest on December 31. Therefore, one possible scenario is that Tata takes over Air India on January 1. 2021. An IANS inquiry sent to Tata Sons went unanswered.
The Tata group, which already has a presence in the airline business, has shown interest in acquiring Air India, which at one point was under the Tata umbrella.
While the other bidders are not yet known, globally, airlines are under severe strain due to the Covid-19 pandemic and the resulting disruption in air travel and tourism.
Tata is believed to emerge as the sole bidder for Air India and the salt-to-software conglomerate is likely to bid before Aug. 31, the latest date for Air India bids, which the government has repeatedly said will not be will extend.
The group already has an airline company in Vistara and it is not yet clear how or if it will consolidate airline companies including Vistara, Air Asia, and the possible acquisition of Air India.
The Tata group has reportedly already started due diligence and is likely to submit a formal offer soon.
On the resulting structure for the airline business, it is speculated that Tata plans to merge its existing stake in AirAsia with Air India into a single entity.
Air India has been through a critical financial situation since long before the Covid-19 attack. The crippling effect of the pandemic, especially in the aviation sector, has further pushed its finances into a precarious position. Recently, its pilots and other employees are on the warpath as Air India laid-off employees and started an unpaid leave plan (LWP).
From Tata Airlines and Air India to Vistara and AirAsia India, the Tata group has been an important part of the growing aviation sector in India.
From long-time nationalized Tata Air Lines and Air India, to strategic joint ventures with AirAsia Berhad and Singapore Airlines (SIA) for AirAsia India and Vistara respectively, Tata has been present in the aviation sector.
The two joint airlines operate independently with their respective business models: low-cost (AirAsia) and full-service (Vistara).
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