Air India Employess’ consortium out of bid race

The proposal of the employees of Air India to take over the running of the ailing carrier has been rejected by the transaction adviser, leaving the Tatas as the favourite in the privatisation race along with Pawan Ruia and SpiceJet promoter Ajay Singh .

“The financial bids would be called soon as the first stage of the process is over,” sources said.

The employees had partnered a Seychelles-based fund for the venture. Transaction adviser EY had questioned the operations of the fund which led to the rejection.

EY has listed three main reasons for the rejection of the bid of the Air India Employess’ consortium.