Tata-SIA could buy stake in ailing AI

NEWDELHI: The Tata group, which founded India’s first commercial airline, Air India, which was later nationalised, is considering buying a stake in the debt-laden national carrier in partnership with Singapore Airlines, a person familiar with the matter said.

“It’s a possibility,” the person said, requesting anonymity. “You sign the cheque and from the very next day imagine the clout you have in the subcontinent, deep into Europe and US.”

Union finance minister Arun Jaitley said on June 1 that he favoured selling Air India, although a formal decision on the sale has not been taken.

Jaitley added that he had asked the aviation ministry to look at possible ways of privatising Air India.

Spokespersons for the Tata group and Singapore Airlines declined comment.

A second person familiar with the thinking in Tata group claimed former chairman Ratan Tata and current chairman N Chandrasekaran have informally (and separately) discussed their interest in Air India with various government officials.

Mint could not independently verify this.

The Tata group and Singapore Airlines launched Vistara in 2015. The joint-venture airline will start plying international routes next year.

To be sure, it is not certain the government will go ahead with the “privatisation process” or that Tatas will take over the airline.

Still, it can’t be denied that the groundwork for a possible divestment is being put in place.

A committee of top bureaucrats, which includes civil aviation secretary RN Choubey, has sent its views on Air India’s divestment to the Department of Investment and Public Asset Management (Dipam), said an aviation ministry official who did not want to be named.