Following that, on October 11, a Letter of Intent (LoI) was issued to the Tata group confirming the federal government’s willingness to promote its 100% stake within the airline. On October 25, the Center signed the share buy settlement (SPA) for this deal. Officials stated on Monday that the remaining formalities relating to this deal are anticipated to be accomplished within the subsequent few days and the airline might be handed over to the Tata group by the tip of this week.
As part of the deal, the Tata group can even be handed over Air India Express and a 50 per cent stake in floor dealing with arm Air India SATS. Tatas had on October 8 beat the INR 15,100-crore supply by a consortium led by SpiceJet promoter Ajay Singh and the reserve value of INR 12,906 crore set by the federal government for the sale of its 100 per cent stake within the loss-making service.
While this would be the first privatisation since 2003-04, Air India would be the third airline model within the Tatas’ steady – it holds a majority curiosity in AirAsia India and Vistara, a three way partnership with Singapore Airlines Ltd.