Tata Sons Wants To Acquire 100% In Air India Via Vistara; But Singapore Airlines Holds The Key!
The talks of the sale of Air India have been going on for a very long time; but now, some actual talks of the sale happening have emerged.
The Tata Group is in discussions with Singapore Airlines to buy off Air India and has also submitted an expression of interest.
Read on to find out all the details about Tata Group buying off Air India!
Tata Group To Buy Off 100 Per Cent Stake Of Air India; Submitted Expression of Interest
The Tata Group is in discussions with Singapore Airlines (SIA), its joint venture partner in Vistara to buy off the debt ridden Air India and has already submitted an expression of interest (EoI) for Air India. The company is reportedly deciding options for the entity that will submit bids for Air India.
The Tata Group plans to acquire a 100 per cent stake in the national carrier along with its wholly owned subsidiary Air India Express. The bid for Air India includes both these entities. The buying out of Air India has been delayed four times already, due to the situation created by the coronavirus pandemic.
The Centre had invited bids to sell 100 per cent of its stake in Air India and its international arm Air India Express and 50 per cent in ground handling joint venture Air India SATS Airport Services.
Tata Group Cant Bid Without The Approval Of Singapore Airlines
As per reports, Tata Sons chairman N Chandrasekaran is holding negotiations with the Singaporean company’s management. Additionally, Malaysia’s AirAsia Group Bhd, which is Tata Group’s partner in the airline AirAsia India, has reportedly released the Tata Group from a no-compete clause. This will allow the company to bid for the airline as well.
The Tata Group will be bidding for Air India through Vistara and the company is in discussions with SIA in order to find a way around their separate non-compete condition.
A group director stated, “The bid through Vistara is sensible, given the operational synergies. It is a business that needs to keep all costs on a tight leash. A separate business structure will prove to be too expensive for the group.”
Without the approval of SIA and the non-compete clause waived of the non-compete clause, Tata Sons cant bid directly for Air India as it is a stake holder in Vistara.