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Jet Airways, Spicejet likely to join race to buy Air India

Last month in an interview, Tata Sons’ chairman Natarajan Chandrasekaran has confirmed that the group is considering buying the airlines.

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Earlier, Tata Sons were reportedly in talks with the government over Air India sale.
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Apart from Tata Group, Air India likely to get more bidders as Jet Airways and SpiceJet reportedly will join the race to buy the national carrier. 

Quoting government sources, a report in the Times of India stated, "The economics of the game will change completely for whichever airline gets Air India. With its 14% domestic and 17-18% international market share, getting AI will be a paradigm shift for the successful bidder. Other airlines like Jet and possibly even SpiceJet will have no option but to bid for Air India".

However, a SpiceJet spokesperson told the newspaper that their airlines is too small to bid for state owned Air India. While in case of Jet Airways, a top source had confirmed that they are contemplating the decision to go on for bidding. 

Last month in an interview, Tata Sons’ chairman Natarajan Chandrasekaran has confirmed that the group is considering buying the airlines. 

He said that the group is thinking to expand its aviation business and he would definitely consider buying the Air India, looking after relevant aspects. 

"We still don’t have all the details. Every business proposal will be very seriously looked at and we will look at that (Air India). Definitely! But currently, we don’t have the data… there are so many different groups within Air India and then there is real estate, there is debt, there are liabilities and we got to look at all of that it, but we will definitely look at it." Natarajan Chandrasekaran said.

"We need to look at aviation as a whole. We are subscale. Any decision that we take—Air India or otherwise—we have to have a story because we can’t be operating with 15 aircraft or 20 aircraft. I feel scale is important…." he further added.

Earlier, Tata Sons were reportedly in talks with the government over Air India sale. 

The group's Chairman N Chandrasekaran is reported to be in talks with the Central government to buy controlling stakes in the airline, reports a business news channel. The group may also bring Singapore Airlines on board to buy 49% stakes in the national carrier, in case the airline is entirely privatised.

DNA Money has learned that a Chandrasekaran-led Tata Group team had also visited the office of Ministry of Civil Aviation in June. This is around the same time when the Centre's think tank, Niti Ayog, had recommended strategic disinvestment of Air India which would allow the Centre to pump more money on priority social sectors. However, why was the meeting held and what all was discussed could not be confirmed by DNA Money.

   

 

 

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