India government says no decision on Air India sale after report cites Tata Sons as winner

Reuters | New Delhi

The Daily Tribune – www.newsofbahrain.com

India’s finance ministry said on Friday reports suggesting the government has picked a winning bid for the debt-laden state-run airline Air India were incorrect.

Earlier on Friday, Bloomberg reported that a panel of ministers accepted a proposal from officials recommending saltto-software conglomerate Tata Sons ahead of an offer from Ajay Singh, promoter of India’s airline operator Spicejet Ltd.

“Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect,” the ministry said in a tweet. “Media will be informed of the Government decision as and when it is taken.” Air India and Tata Sons declined to comment.

Earlier this month the finance ministry said it had received bids for the airline, but did not name the bidders. A possible sale would come at a time the airline industry is trying to recover from the slump in travel caused by restrictions aimed at containing the coronavirus pandemic.

This would also be seen as a relief to Prime Minister Narendra Modi’s government, which has been pushing to sell its entire interest in the loss-making airline. The winning bidder would win control of Air India’s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas, including London’s Heathrow Airport.