As per reports, the Tata Group has now started negotiations with Singapore Airlines to buy out Air India, which is buried in debt.
The buying out of Air India has been delayed four times already, due to the situation created by the coronavirus pandemic.
Read on to find out all the details right here!
Tata Group To Partner With Singapore AirlinesTo Buy Out Air India
The Tata Group, with its joint venture partner in Vistara, Singapore Airlines (SIA), are now abandoning a non-compete clause and joining in a proposed bid for Air India. Vistara is a full-service airline.
A group director close to the development said that the group chairman has stated that airline businesses have to be consolidated. There cannot be multiple airlines.
He has also said, “So Air India being a full-service carrier, it is only sensible that it will come under the Vistara business which is a full-service carrier too. So we are hopeful that our partner will be willing to participate in the future plans that include Air India.”
We already know about Air India’s enormous doubts that Air India is burdened with. As of March 31, 2019, Air India has a total debt of Rs. 60,074 crores, the TATA Group would be required to absorb Rs. 23,286.5 crores.
Tata Group To Go For The Bidding Regardless Of The Outcome Of Joint Venture
There is a possibility that SIA will go ahead with the bidding too. However, officials close to the development have revealed that if they don’t agree with the plans, the Tata Group is planning to bid for the national carrier all by themselves. This means that Air India will be bought out irrespective of the outcome of the joint venture.
As of now, the Tata Group already operates two airlines—full-fledged carrier Vistara (with SIA) and Air Asia India (with Air Asia Berhad).
As per the officials, the government seems to agree with the Tata Group’s decision to acquire and operate Air India, and has assured that it will be helpful with dealing with bureaucratic hassles following the privatization on backing the deal.
Comments are closed, but trackbacks and pingbacks are open.