Hindujas opt out of AI bid

By Our Special Correspondent

NEW DELHI, AUG. 31. The Hindujas today announced a formal withdrawal from the process of disinvesting the State-owned airline, Air India. The decision to opt out of the race was more or less expected since the guidelines on security issues laid down by the Union Cabinet's Committee on Disinvestment had already effectively barred the Hindujas from the process.

With this decision, only the Tata-Singapore Airlines (SIA) consortium is left in the race as a strategic buyer for the controversy-ridden airline. Even their presence is now uncertain as SIA seems more interested in a tie-up with the airlines of New Zealand. In case it opts for that collaboration, there is a distinct possibility of it dropping out of the consortium with Tatas. In that case, the Tatas will have to decide whether or not to continue with the aim of taking over Air India, which was originally launched by the Tata patriarch, Mr. J.R.D. Tata.

The disinvestment process for Air India thus still has many hurdles to cross. But the Government has already made it clear that the disinvestment process will continue even with a single bidder. However, in case even the last bidder decides to withdraw, the entire tortuous process will have to begin afresh.

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