The Maharaja will offer the Tatas interesting opportunities to build synergy, but first, it could end up costing them above 40 per cent of its enterprise value just to get things off the ground.
Informed sources have told Business Standard that the Tatas may have to invest over 1 billion dollars to upgrade and refurbish Air India’s fleet and improve its passenger reservation system.
According to sources, the first three tasks will be refinancing Air India’s existing loans, upgrading its aircraft gradually, and rewriting the various business contracts with suppliers and vendors.
Let’s get into the details. One of the immediate focus areas would be to rewrite the agreements with lessors.
