The government has denied media reports that Tata Group has won the bid for the debt-laden Air India. Bloomberg had reported earlier that salt-to-software conglomerate would re-acquire the national carrier quite half a century after ceding control to the govt . “Media reports indicating approval of monetary bids by Government of India within the AI disinvestment case are incorrect,” the finance ministry said on Friday, adding the media are going to be informed of any decision “as and when it’s taken.”

Tata Group and SpiceJet chairman Ajay Singh in his private capacity had bid for the embattled state-run Air India earlier this month. In December 2020, the govt had invited expression of interest for the divestment of Air India. Four bidders had entered the race to require over the beleaguered airline, but Tata Group and Spicejet CEO Ajay Singh were the sole ones to form it to the ultimate stage.

This has been the second attempt by the PM Modi-led government to sell Air India. The centre had made an unsuccessful plan to sell the ailing airline earlier in March 2018. However, its expression of interest to sell 76 per cent stake in Air India had no takers at that juncture thanks to concerns regarding the airline’s burgeoning debt.

Air India has accumulated losses of over ₹ 70,000 crore and therefore the government loses nearly ₹ 20 crore to run the national carrier a day , consistent with reports. The beleaguered airline, which one ruled the India skies, began to lose ground with the arrival of personal carriers within the 1990s and therefore the emergence of no-frill airlines within the mid-2000s. The merger with the state-owned domestic airline Indian Airlines in 2007 proved to be the ultimate nail within the coffin, for Air India.

But despite its precarious finances, Air India still controls quite 4,400 domestic and 1,800 international landing and parking slots at domestic airports, and 900 slots overseas. and therefore the winning bidder won’t only hold 100 per cent stake in Air India and its low-cost arm Air India Express, but also a 50 per cent stake in ground handling company Air India SATS Airport Services Private Limited (AISATS).