Tata Sons, the holding company of Tata Group has quoted a higher price than SpiceJet promoter Ajay Singh for Air India Ltd in the preliminary bidding round. According to people aware of the development.
The government hopes to privatize India’s flag carrier by the end of the current fiscal year. Tata Sons is in the driver’s seat in the proposed disinvestment process, with the second wave of covid resulting in reduced load factor and suspension of air travel, constricting the cash flows of Air India and lowering its valuation.
The qualitative matrices include parameters such as years of experience in managing aviation business, size of airline fleet managed and countries operated in, leadership structure, brand and goodwill, expertise in managing large non-core assets, experience in handling retirement and pension benefits, expertise in managing workforce, among others,” said one of the two people cited above.
However, the divestment of Air India could get delayed by a few months as due diligence, such as physical inspection of (real estate) assets by a bidder will have to be deferred due to the pandemic, Tuhin Kanta Pandey, secretary, department of investment and public asset management (Dipam)—the nodal agency running the divestment process said .