Tata Sons wins the bid for national carrier Air India: Report

Tata Sons won the bid for national carrier Air India as they were the highest bidder, reported news agency ANI, quoting sources. Union Home Minister Amit Shah-led ministerial panel gave approval to this bid.

The final bid to acquire one of India’s biggest Airlines was filed by the conglomerate on September 15 after which business critiques believed it to be the frontrunner to purchase the airline.

The runner-up company was SpiceJet promoter Ajay Singh, who had also submitted a bid for the airline.

The announcement comes just a day after a report hinted that the government finalised the minimum reserve price for the airline. The minimum reserve price for the national carrier is based on future cash flow projection, brand value and slots in foreign airports.  

It has also been reported that Tata Sons’ bid for Air India was Rs 3,000 crore more than the reserve limit set by the government.

However, the Government of India on Friday clarified that all the media reports stating the finalisation of Indian carrier Air India’s acquisition by Tata Sons are fake.

“Media will be informed of the Government decision as and when it is taken: Secretary, Department of Investment and Public Asset Management,” said the Secretary, Department of Investment and Public Asset Management, GoI.

However, PTI reported that Tata Sons continued to emerge as the top bidder for the takeover of debt-laden state-run airline Air India but the bid is yet to be approved by a group of ministers, sources said.

If its bid is accepted, Tata will take over the national carrier they once founded.

Jehangir Ratanji Dadabhoy (JRD) Tata founded the airline in 1932. The airline was called Tata Airlines then.

In 1946, the aviation division of Tata Sons was listed as Air India and, in 1948, the Air India International was launched with flights to Europe.