Tata Sons are set to takeover Air India after a successful bid of Rs. 18,000 crore. government sources confirmed.
With this, the airline will go back to the Tatas who have a long history with the national carrier. JRD Tata founded the airline in 1932 and it was at that time called Tata Airlines.
Tata Sons bid ₹18,000 crore for the government’s 100% stake in Air India, a finance ministry official told reporters, Reuters reported.
The government has been trying to sell Air India for quite some time now but the process witnessed several hiccups, including that of the pandemic.
To keep airline operating, the government loses ₹200 million every day and the accumulated loss is now over ₹700 billion, officials have said.
In this bidding, the one which has been won by the Tata Sons, the government relinquished its stake and now 100 per cent of Air India’s stake goes to the Tatas.
The Tatas will now control Air India’s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas, including London’s Heathrow Airport.
Apart from 100% stake in Air India, the Tatas will get 50% of AISATS, which provides cargo and ground handling services at major Indian airports.
Ratan Tata Welcomes back Air India.
Tata Group chairman emeritus Ratan N Tata welcomed back his treasured air venture to the salt-to-software conglomerate, after 68 years as the Union government announced the company as winning bidder for the debt-laden state-owned airline.
The Tatas won the bid at ₹18,000 crore, said DIPAM secretary Tuhin Kant Pandey.
“The total debt on Air India as of August 31, 2021, is ₹61,562 crore,” Pandey further said.
The Tata Group currently operates Vistara, India’s only other full-service carrier, in a venture with Singapore Airlines