Battle for Air India: Tata Group Vs Spice Jet CEO Ajay Singh By knowledgesource2

Battle for Air India: Tata Group Vs Spice Jet CEO Ajay Singh

  After more than 18 months, the fight for Air India is reaching its final stages.

Two people are bidding for the airline, Ajay Singh, CEO of Tata Group and SpiceJet

With the airline set to go private in a matter of months, here's where both sides stand with their bids.

History and current situation of air India

Air India has been attracting the attention of the Government of India for the last 4 years.

The airline surrounded by problems is struggling for more than a decade,

  And is drowning in billions of debts and there is a massive annual financial loss to the government.

for that

  2017 May, the government wanted to sell Air India, but at that time no one wanted to buy Air India. There were many big reasons behind it, the first big reason was that the government wanted to keep 24 percent share with itself so that the companies felt that the government would interfere in it. The second was that Air India had a lot of debt.

  After a failed attempt to sell 76% of Air India in 2017, the government came back with an offer to sell 100% of Air India in January 2020.

However, things did not go according to plan. Just two months after the privatization process began, COVID-19 decimated the global aviation industry. Those who wanted to buy Air India quickly bid to save their own businesses from bankruptcy. Air India has a total debt of 60 thousand crores and the one who buys it will have to pay only 23 thousand crores.

In December 2020, after months of negotiations, the government officially closed the bidding for Air India.

  Four people wanted to buy it when four groups started the race formally. But later due to some reason, 2 groups refused to buy.

The race is now down to two prominent names, the first being the Tata Group and the second being Ajay Singh, CEO of SpiceJet. Both companies have an important share in the airline industry.

Tata has majority shares in Vistara and AirAsia India and has big plans for the flag carrier. However, before that, the question of bids and funding is the first hurdle.

Aur Ajay Singh is the CEO of spice jet.

 It is important to note that all discussions are secret and all the details here are from external sources. However, as the race enters the final stages, we have a clear picture of how much both the bidders are planning to pay for the airline.

Ajay Singh spice jet CEO's Funding For Air India.

SpiceJet CEO Ajay Singh may seem like a surprise bidder for an airline like Air India. According to Moneycontrol,

Ajay Singh is partnering with two US funds to raise 1 billion. This will be done by creating a Special Purpose Vehicle (SPV), which Singh will give an individual contribution of $300 million for the sale of his stake in SpiceJet cargo and utilizing around 60% stake in SpiceJet. The $700 million will come from two US-based investment companies, which are still unknown.

Tata Group funding for Air India.

 After Air India speed started, after the airline enabled. Tata wants to build Air India from the very beginning. In fact, it was the Tata Group that established Air India in the 1930s and was a world-renowned airline in the 1980s.

 For the multi-billion dollar conglomerate, the situation will worsen, the problem it may face. Nearby Vistara Airlines owns 51% and Air Asia India holds 83%. We know Tata's quote may have less description about Air India.

As the process is fast approaching the two-year mark, the government is adamant that Air India should either be shut down or sold. The last time for sale seems to be the end of the half-financial year 2021-22. This means the airline will be in private hands by the end of the first quarter of 2022.

  It is impossible to predict which of the two bidders will win in the bidding process. While Tata comes in with a long legacy in space and deep pockets, Ajay Singh is making a serious bid of his own. The coming months will tell us a lot more about the future of this historic airline. Whether it is Air India of Tata Group or Ajay Singh, CEO of SpiceJet.