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- Air India’s cell date news update; Air India Auction and Bidding Process | Tata Group Spice Jet Kanti Commercial Air India to Acquire
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2 hours agoAuthor: Jaydev Singh
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The sale process of Air India has started. The government had asked companies interested in buying it to participate in the Expression of Interest (EOI). Several companies have submitted EOIs by 5pm on December 14th. The auction process has now reached its second stage. In 2018-2018, Air India has not been sold despite the government’s efforts, it looks like it will be sold now. However, aviation experts are not very keen on this right now.
This is not the first attempt by the government to sell Air India, aviation expert Harshvardhan told Bhaskar. Anyone can keep an EOI. The original picture will start to become clear after January 5th. Earlier, most of the bidders were excluded from the process at the last minute, but only after January 5 will you know how many companies are eligible to bid. The financial offer of the companies will then depend on what happens next in negotiations with their government.
But why is Air India being sold? Why does the government want to sell it? Which companies want to buy it? What is the history of the companies they want to buy? How different is this auction from last time? Let’s find out …
Why is Air India being sold?
The company is running at a loss. The company incurred an operational loss of Rs 1,424 crore in 2011-19-1-19 alone. At the same time, the company incurred an operational loss of Rs 1,245 crore in 2017-18. The company has incurred a loss of over Rs 62,000 crore due to continuous losses. Given the condition of the company, the government has already tried to sell it. In 2018, Air India found no buyers in this effort.
Why was the auction not held in 2018?
In 201 In, the government had offered to sell a portion of the loan with a 76% stake in the company, but no buyer was found due to Air India’s losses and government terms. Last year, Air Transport Minister Hardeep Puri had said that if Air India was not privatized, there would be no other option but to close it.
What changes did the government make in this auction?
What has happened in the auction so far?
The government had asked companies wishing to buy Air India to submit an Expression of Interest (EOI) by December 14. Secretary of the Department of Investment and Public Property Management (DIPAM) Tuhin Pandey on Monday briefed several EOIs. However, he did not say how many companies submitted EOIs.
How many companies have deposited EOI?
Sources said the companies that have submitted EOIs include Tata Sons, SpiceJet, Kanti Commercial, Delhi-based company, Air India Group of Employees and American company Interps Inc. Lakshmi Prasad, President, Interps Inc., has given this information herself.
Is Spice Jet itself participating in the auction?
Aviation expert Harsh Vardhan says anyone can submit an EOI. I should also submit the EOI on paper if I want. As for SpiceJet, it is going through a time of crisis. It is difficult to say how long the company will continue its operations. In such a scenario, it is difficult to say where she will buy Air India. SpiceJet lost Rs 113 crore in the September quarter.
What role can Tata play in the auction?
If Tata wins the auction, Air India’s operations will return to the Tata Group after 67 years. In 1932, the Tata Group launched Air India (then Tata Airlines). In 1953, the government took over and renamed it Air India. Many experts see Tata as the strongest contender.
Why is it difficult for Tata to buy Air India?
So far, nothing official has been said on this EOI from Tata. Tata is the only bidder for any of the airlines. Tata is operating Vistara and Air Asia in collaboration with Singapore Airlines. However, Singapore Airlines is not keen to buy Air India.
What does it mean to deposit EOI American firm Interps Inc.
Interps Inc. on Monday issued EOIs to more than 200 Air India employees. The New York-based firm is backed by NRI investors in the US and Europe. The firm is a listed company that invests in business opportunities. The company handles retirement asset accounts for US-based NRIs. Lakshmi Prasad, a native of Hyderabad, heads the company.
What is the partnership between Air India employees and Interps Inc.?
Lakshmi Prasad, president of Interps Inc., said Air India would have a 51% stake in the group of employees. The remaining 49% will remain on Stack Interps Inc. ‘
Prasad wrote on social media, ‘Good luck to all of you, we are introducing EOI for Air India today. We will surprise everyone. It is a kind of dedication to keep the national career of our motherland and its staff flying and flying high.
What is this radiant professional?
Kanti Registrar of Companies is a non-government company registered in Delhi. The company, registered in April 200, has an authorized capital of Rs 1.3 crore. The directors of the company are Saurabh Bagh and Amit Kumar Joshi. “Our company is participating in the auction along with two other players, Fragment Investments and Vast Investments,” said Saurabh Bagh.
Are there any conditions after buying Air India?
When will the final list of bidding companies come out?
Companies that have submitted EOIs will have to submit their physical bids within the next 15 days. After this, the government will consolidate the eligible companies by January.