The government has initiated the process of inviting financial bids for sale of national carrier Air India, and the deal is likely to conclude by September, according to sources. Salt-to-software conglomerate Tata Group is one of the entities that has put in preliminary bids for buying loss-making Air India. The other bidder is private airline SpiceJet. The sources add that after analysing preliminary bids, eligible bidders have been given access to Virtual Data Room (VDR) of Air India, following which investors’ queries have been answered.  

The government is selling its entire 100 per cent stake in Air India that has been in losses ever since its merger with domestic operator Indian Airlines in 2007. The stake sale process has been delayed due to the COVID pandemic, and the government has extended the deadline to submit preliminary bids for the national carrier five times.

The airline, which started as a mail carrier in 1932, will give a successful bidder control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots at airports overseas. Besides, the bidder will get 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which provides cargo and ground-handling services at major Indian airports.