Tata Sons Ltd, the front-runner to buy state-run Air India Ltd, and the government are close to sealing the terms of the purchase, having managed to narrow their differences on the three key sticking points of pension liabilities, real estate assets and debt, two people familiar with the matter said.
Final talks between both the parties are underway, and a financial bid will be submitted by the Tata group as early as this month, the people said on condition of anonymity.
The government is keen to sell Air India, which has been surviving on a government bailout. The airline has failed to turn in an annual profit since it was merged with state-run Indian Airlines in 2007.
