Tata Group closing in on official bid for Air India
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Update time : 2020-08-18 16:28:07
India's Tata Group conglomerate is moving in on ownership of Air India.
The company is prepping a formal bid for the beleaguered flag carrier, and has reportedly started due diligence proceedings.
Tata Group says it will go it alone and invest its own money to take over the airline.
"Tata Sons is currently evaluating the proposal and will consider a bid after due consideration and at the appropriate time. There is no plan to bring in a financial partner," a Tata spokesperson told local media.
It is the clearest sign yet that a deal can be done to take the airline private again.
It has until 31 August to table a formal bid.
If successful it would mark a return of Tata ownership of the airline.
An airline business established by Tata Sons Ltd in 1932 later became what is known as Air India today.
In the past two years Air India's path to privatisation has been troublesome with several delays and ultimately a lack of interest due to its huge debts.
The Indian government has since sweetened the deal by transferring two-thirds of its debt out to a separate holding company.
Tata Group has majority shares in two other Indian airlines - Vistara and AirAsia India.
