Air India sale delayed

Air India’s sale from the Indian government into private hands has been delayed to the 31st of March (the end of the 2020/2021 fiscal [business] year), as today’s deadline for potential bidders has expired. The Indian government wishes to prolong the time period for the airline’s sale so as to attract more bidders. It has announced that the current bidders’ names will not be publically released. According to the contents of the sale contract, the new buyer of the airline would have the right to reduce the airline’s fleet due to lack of demand in this crisis. But, even though the airline would belong to a new company, 74 to 90% percent of the airline’s assets would be owned by the government. The new owner will not be allowed to fire any employees for the 1st year as owner of Air India. Some sources say that Tata Group, a large Indian financial services company, that owns Indian low-cost airlines Spicejet and Vistara, is the main bidder for the airline out of 3 potential bidders, but official data is yet to be released. Tata Group was founded in 1868, was involved in the opium and tea trade in China and Mongolia, created Air India (under the name Tata Airlines) in 1946, and is the owner of almost every major company in India. 5th of February 2020.

An Air India Douglas DC-3. The DC-3 was operated between 1936 and the 1970s by Air India.

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