Air India Sale Date News Update; Air India’s auction and bidding process | Tata Group on the ground to acquire SpiceJet Kanti Commercial Air India | How will the Air India auction be held? Those who want to buy, not their own destination, know everything

  • Hindi News
  • Original DB
  • Explainer
  • Air India Sale Date News Update; Air India’s Auction and Bidding Process | Tata Group on the ground to acquire Spice Jet Kanti Commercial F India

Tired of ads? Install Dainik Bhaskar app for news without ads

2 hours agoAuthor: Jaydev Singh

  • Copy the link

The process of selling Air India has begun. The government has asked companies seeking to buy it to participate in the Expression of Interest (EOI). By 5pm on December 14, several companies have submitted EOIs. The auction process has now reached the second stage. In 2018, which Air India has not sold even after the government’s efforts, it looks like it will sell now. However, aviation experts aren’t too excited about it right now.

Aviation expert Harshvardhan told Bhaskar that this was not the first attempt by the government to sell Air India. Anyone can put an EOI. The original picture will be cleared after January 5. In the past, many bidders have been excluded from the process at the last minute, so only after January 5 will you know how many companies are eligible to bid. After that, the financial offer of the companies will depend on their negotiations with the government or what happens next.

But why is Air India sold? Why does the government want to sell it? Which companies want to buy it? What is the history of the companies that want to buy it? How different is this auction from last time? Let us know …

Why is Air India sold?

The company is running at a loss. The company will receive Rs. 4 thousand 424 crore operational loss. At the same time, the company had an operational loss of Rs 1,245 crore in 2017-18. The company has incurred more than Rs 62,000 crore due to continuous losses. Given the condition of the company, the government has tried to sell it earlier. In 2018, Air India has not found a buyer in this endeavor.

Why isn’t the auction completed in 2018?

In 2018, the government offered to sell some of the debt portion with a 76% stake in the company, but no buyer was found due to Air India’s losses and government terms. Last year, Aviation Minister Hardeep Puri said that if Air India was not privatized, there would be no other option but to close it.

What changes did the government make in this auction?

  • This time the government is auctioning off 100% of the company. That is, the government will not have any shares in the company.
  • Out of a loan of over Rs 60,000 crore to the company, the buyer will have to pay only Rs 23,286 crore. The remaining loan will be repaid by the government.
  • The net worth of the company participating in the auction should be Rs 3,000 crore. In 2018, it was Rs 5,000 crore.

What has happened in the auction so far?

The government has asked companies wishing to buy Air India to submit an expression of interest (EOI) by December 14. Tuhin Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), gave information about the many EOIs coming up by Monday. However, he did not say how many and which companies have submitted EOIs.

How many companies have accumulated EOI?

Sources said the companies that have submitted EOI include Tata Sons, SpiceJet, Kanti Commercial, a Delhi-based company, a group of Air India employees and American company Interps Inc. Interps Inc. This has been informed by Lakshmi Prasad herself.

Is SpiceJet itself in a crisis of participating in the auction?

Aviation expert Harsh Vardhan says anyone can submit an EOI. If I want, I should also write on paper and submit EOI. As far as SpiceJet is concerned, it is going through a time of crisis on its own. It is difficult to say how long the company will continue its operation. In such a scenario, it is difficult to say where it will buy Air India. SpiceJet lost Rs 113 crore in the September quarter.

What role will Tata play in the auction?

If Tata wins the auction, after 67 years, Air India’s operation will again come under the Tata Group. In 1932, it was the Tata Group that started Air India (then Tata Airlines). In 1953, the government took control and renamed it Air India. Many experts see Tata as the strongest contender.

What is wrong with Tata buying Air India?

So far, Tata has not officially commented on the EOI. Tata is the only bidder for any airline. Tata operates Vistara and Air Asia in collaboration with Singapore Airlines. However, Singapore Airlines is not keen to buy Air India.

What is Interps Inc., an American firm that submits EOIs?

Interps Inc. on Monday filed EOIs with more than 200 Air India employees. The New York-based company is based in the U.S. And endorsed by NRI investors in Europe. The firm describes itself as a listed company investing in business opportunities. The company manages the retirement assets of NRIs based in the US. The company is headed by Lakshmi Prasad of Hyderabad origin.

Air India Employees and Interpus Inc. What kind of partnership is there between?

Lakshmi Prasad, Chairman, Interpus Inc., said, “Air India will have a 51% stake in the group of employees. The remaining 49% stack interrupts Inc. Will be with. ‘

Prasad wrote on social media, ‘Good luck to you all, we are submitting EOI for Air India today. We will all be amazed. This is a kind of dedication to our motherland to keep India’s national career and its employees flying and standing at the heights. ‘

What is this Kanti commercial?

Kanti is a non-government company registered in the Registrar of Companies, Delhi. The company had a registered capital of Rs 1.3 crore in April 2003. The directors of the company are Saurabh Bagh and Amit Kumar Joshi. “Our company is participating in the auction along with two other players named Fragment Investments and Enormous Investments,” said Saurabh Bagh.

Are there any conditions after the purchase of Air India?

  • Any private player who buys Air India will also have to operate airlines in the name of Air India.
  • The Request for Proposal (RFP) will state how long the buyer will not be able to change the name of the airline before the auction.
  • Air India has its corporate office fees in Delhi and its head office in Mumbai. Both of these buildings will not be sold. However, the buyer will be allowed to work with their office fees for a while.

When will the final list of bidding companies come out?

Companies that have submitted EOI will have to submit their physical bids in the next 15 days. After this, the government will consolidate the eligible companies by January 5.