Tata Group might acquire Air India by January 2021 if it becomes sole eligible bidder

talks in aviation circles are getting louder that Tata group may take over Air India as early as January 2021, if it becomes sole eligible bidder for national airline. If Tata submits its bid on or before August 31, it is likely to be sole eligible bidder for acquiring Air India. Once Tata bid is accepted, 90-day period for handover would begin and end latest by December 31. In that case, Tata would take control of Air India by January 1, 2021, itself.

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Tata group, which has me a mark in airlines business for years, is w interested in acquiring Air India, which was under Tata umbrella at one point of time. group alrey has an airline venture in Vistara and it is t yet clear if it will combine Vistara, Air Asia and possible acquisition of Air India. From Tata Airlines to AirAsia India, Tata group has been a crucial part of growing aviation sector in country.

Tata is widely believed to emerge as sole bidder for Air India and company is likely to place a bid before August 31 itself. government has repeatedly said that date to place bids for national carrier will t be extended.

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Tata group hires top legal consultants for bidding

As per a media report, Tata Group has hired top legal firms and consultants to conduct due diligence before bidding for national carrier. Furrmore, re are speculations that company is planning to merge its stake in AirAsia and Air India into a single entity, however,  officials from conglomerate said that such discussions have taken place formally.

Provisional figures show Air India’s total debt exceeds Rs. 58,000 crores as on March 31, 2019. government has offered a 100% stake in national carrier to potential bidders besides relaxing a substantial part of airline's debt. report ded that bidders for airline will have to absorb Rs. 23,286.50 crore of total debt while remaining will be transferred to Air India Assets Holding Ltd.

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