New Delhi: In the race to buy government carrier Air India, Tata Sons Limited and the government have completed a major deal. Sources have revealed that Tata will file its bid before the end of this month.
The government wants to sell the debt-ridden Air India. The airline's annual profit fell after it merged with state-run Indian Airlines in 2007.
A large number of Air India employees are going to retire in the coming years. In such a situation, the ownership of the company is a sensitive issue for employees. They want the government to take care of matters related to pension.
Tata group started Air India
The Tata group had started Air India in the year 1932. Later in 1953, it was sold to the government. Now once again, the Tata group wants to make Air India their own. The government hopes that the disinvestment of Air India will be completed by the second quarter of the next financial year.
Air India is in debt
Air India currently has a debt of over Rs 90000 crore. It is estimated that Air India will report a loss of Rs 10,000 crore in the current financial year. The Tata group is planning to bid for Air India through Air Asia India.
The Tata group has a controlling stake in Air Asia India. Ajay Singh, along with the Middle East Sovereign Fund, has plans to buy Air India.