SALE TO TAKE WING?

Unlike in 2018, when the Centre’s attempt to find a buyer for the beleaguered Air India saw no takers, there are several bidders in the fray this time around.

- M.G. Arun

Unlike in 2018, when the Centre’s attempt to find a buyer for the beleaguered Air India saw no takers, there are several bidders in the fray this time around. By the time the deadline to submit expressions of interest (EoIs) to bid for the national carrier closed on December 14, “multiple EoIs [had been] received,” said Tuhin Kanta Pandey, secretary of the department of investment and public asset management. According to reports, the bids include one from Tata Sons—which already holds 51 percent stakes in Vistara and AirAsia India— as well as SpiceJet and a consortium consisting of some Air India board members, staff and a US-based investment firm, Interups Inc. Physical bids need to be submitted by December 29, and qualified bidders are likely to be notified on January 5.

The bid to sell Air India comes at a time when its domestic market share has nosedived to single digits. As of August, Air India had a 9.1 percent share, as per DGCA (Directorate General of Civil Aviation) data. IndiGo has the largest share—60.4 percent— followed by SpiceJet with 15.7 percent, while Vistara and AirAsia India had 4.2 percent and 6.2 percent, respectively. However, in international operations, Air India claims to be the leader, with an 18.6 percent market share.