Rediff Logo
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Women
Partner Channels: Auctions | Health | Home & Decor | IT Education | Jobs | Matrimonial | Travel
Home > Money > PTI > Report
December 7, 2001
  Money Matters

 -  'Investment
 -  Business Headlines
 -  Corporate Headlines
 -  Business Special
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff


  Call India
   Direct Service

  Save upto 60% over
    AT&T, MCI
  Rates 29.9/min
   Select Cities

   Prepaid Cards

  Mumbai 24/min
  Chennai 33/min
  Other Cities

 India Abroad
Weekly Newspaper

  In-depth news

  Community Focus

  16 Page Magazine
For 4 free issues
Click here!

 Search the Internet
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page Best Printed on  HP Laserjets

Tata Sons withdraws from Air-India bid

Divestment process in the civil aviation sector seems to have come to a grinding halt with Tata Sons, the sole bidder for Air-India, withdrawing from the race to acquire government stake in the national flag carrier.

Tata Sons director (Finance) Ishaat Hussain conveyed the company's decision to pull out in a letter to the divestment ministry earlier this week, sources said.

Privatisation of domestic carrier Indian Airlines too had fallen after two remaining bidders - Videocon and Hindujas - were disqualified by the government from acquiring stake for different reasons.

While withdrawing, Tata Sons cited its failure to find a suitable partner to fill-in for Singapore Airlines, which had pulled out on September one deciding against pursuing acquisition of Air-India stake due to "adverse climate".

Tatas also blamed the slump in the global aviation industry for putting in abeyance its decision to foray into airline business, the sources said.

Earlier, Hindujas, the only other bidder in the race for acquiring 40 per cent government stake and management control in Air-India, had pulled out.

SIA's withdrawal dealt a severe blow to the Tatas who failed to bring about a partnership in the airlines sector for the second time. Earlier, a Tata-SIA proposal to start a domestic airline was shot down by the United Front government in 1997-98 on the ground that an airline with foreign equity participation could not be permitted to fly the Indian sky.

Air-India: Of divestment and other issues

Back to top
(c) Copyright 2000 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Tell us what you think of this report