All Nippon Airways might throw it’s hat in Air India’ acquisition bid in round 2
EXCLUSIVE:
NEW DELHI: The much-hyped prospective buyout bid of the ailing national carrier Air India jointly by Tata Group and Singapore Airlines, might witness the entry of Japan’s largest air airliner company – All Nippon Airways (ANA).
However, according to the highly placed sources ANA is keen on making the investment in Air India, but not as a primary investor.
ANA may enter the fray after the first round of acquisition by the players like Tatas is completed, and make the investment in round 2, the people close to the developments told Asian Community News (ACN) Network on the condition of anonymity.
The government of India has invited preliminary bids to divest its 100 % stake in Air India, and it’s profit-making subsidiary Air India Express as well as its joint venture company Air India SATS Airport Services.
AISATS is a joint venture partnership between Air India and Singapore Airport Terminal Services (SATS) Limited.
As per the document issued by the Department of Investment and Public Asset Management, the last date for the submission of bids is March 17, and qualified bidders will be notified March 31.
Asian Community News (ACN) Network has learned that ANA’ top management sleuths are in constant touch with the Tata Sons chairman Natarajan Chandrasekaran, and have expressed their desire to be the part of India’s national airlines but after the Tata Sons have acquired it.
ANA’s interest in Air India also stems from the fact that Air India has current and potential connectivity with Japan, and it is already running its services between India and Japan.
Also, Vistara – a full-service carrier and a 51-49% JV between Tata Group and Singapore Airlines, has plans to fly newly acquired a Boeing 787-9 Dreamliner to Japan from May.
Recently only Vistara has received the first delivery of first wide-bodied plane Dreamliner to start medium and long haul flights to Japan and the UK, to start with. The company is due to get a total of six Dreamliners.
Why ANA wants to be a round-2 investor?
Once founded by the J R D Tata as Tata Airlines in 1932 in 1932, the entity later became a public limited company and was renamed as Air India.
However, the state-owned carrier has been accruing losses for the past many years and it’s losses reported at Rs 8,556.35 crore in 2018-19.
The net losses reported in 2017-18 were at Rs 5,348.18 crore. The cash-strapped carrier’s accumulated losses in the past decade stood at Rs 69,575.64 crore.
ANA wants Tata or its led consortium to acquire Air India, settle the business-related issues involving employee unions as well as a fleet of some of the old aircraft.
With an employee base running in thousands across India, Air India has a dozen employees associations and labour unions opposing privatizations, and they have met the civil aviation minister Hardeep Singh Puri expressing their apprehensions.
The proposed investment by ANA is also aimed at the modernization of the Air India fleet of aircraft.
