A sigh of relief for Air India? In a latest development, Tata Group expressed its interest to buy India's national carrier. Tata Sons' chairman N Chandrasekaran told CNBC-TV18 that the group will look at Air India's disinvestment currently being executed by the government.
However, Chandrasekaran said the company needs more details from the government on the process in order to finalise its position on the deal. Referring to the group's new start-up Vistara in alliance with Singapore Airlines, he said the group can't remain with a fleet of just over a dozen planes.
This is for the first time Tata Group formally expressed interest in debt-ridden Air India.
On the other hand, the central government is going through a though time in selling off India's national airline. As of now, only low cost airline IndoGo is showing interest in buying the international business of the carrier.
Although IndiGo has other options open with them, earlier in September, the company said that it is considering investing in Jet Airways if it failed to acquire a stake in Air India.
An Air India official explained that the problem has only got worse because of the government policy, which barred foreign players from bidding for Air India. These kept foreign airlines like Emirates and Singapore Airlines, which could have been interested, out of the game.
Another reason why investors are not showing much interest in buying the state-owned carrier is the company's large debt of more than Rs 52,000 crore. Experts opined that investors will come depending on how much of the loans the government is willing to write off.
Back in 2000, the Tata Group and Singapore Airlines had shown their interest in acquiring up to 40 percent of Air India. Later in 2013, after a meeting with the then aviation minister, Tata Group's Chairman Emeritus Ratan Tata said the company would be interested in buying a stake in Air India if the government decides to privatise the airline, reported Mint.
