Tatas almost certain to bid for Air India, explore merger plans

MUMBAI: The Tatas appear to be moving closer to a decision to bid for Air India in partnership with Singapore Airlines and have already started working on the structure for such an acquisition — including a merger of AirAsia India, in which they hold 51%, and Air India Express, a 100% subsidiary of the government-owned national carrier.

Not just that, the Tata Group is reliably learned to have approached Tony Fernandes, the Malaysian entrepreneur who holds 49% in AirAsia India, for his approval to acquire AI Express. The shareholders’ agreement stipulates that the Tatas cannot invest more than 10% in another budget airline without Fernandes being willing to waive the covenant.

People close to the development said a new agreement is expected to be signed soon. In lieu of the waiver, the T