Saturday, 28 January 2023

Air India acquired by Tata Sons in ₹ 18,000 Crore

Air India acquired by Tata Sons in ₹ 18,000 Crore

On Friday, The Tata Group called it is retaking the ailing national carrier Air India a "historical moment," adding that it was a "rare right" to be able to "own and operate the country's flag bearer airline."

In a statement, a company spokesperson said,

"At Tata group, we are glad to be declared as the winner of bid for Air India. This is a historical moments, and it will be a scarce privilege for our Group to own and operate the country's flag bearer airlines."

The Tata Sons won a bid for the debt-laden airline for ₹18,000 crores by buying out the Indian government of its 100 percent stake. The Tatas will control Air India's 4,400 domestic, 1,800 international landing and parking slots at domestic airports and 900 places overseas, including Heathrow Airport in Londons.

Along with the airlines, the Tatas have also obtained around a quarter of Air India's levy of 615 billion rupees, while the balance will be transferring to a particular purpose vehicle. Although, the company struck an optimistic tone about the airline's future and insisted that they

"try to build a world-class airlines which makes every Indians proud."

Air India acquired by Tata Sons in 18 000 Crore 1unsplash image

Read More : Top 20 Airlines named in 2021 for Air safety

The spokesperson further said.

"As it welcomed the airline back after 68 yrs, the salt-to-software conglomerate also paid a glowing tribute to its erstwhile chairman JRD Tata who had piloted its first flight in 1932. "On this incident, I would like to pay praise to JRD. Tata, pioneer of Indian aviation, whose memory we cherish,"

After its founding, the airline used to fly mail and passengers in a single-propeller de Havilland Puss Moth from Karachi to Bombay (modern-day Mumbai). The airline was nationalized in the 1950s by the Indian government.

Since the 1990s, Air India has struggled to survive in the aviation sector, characterized by extreme competition from low-cost airlines, both domestic and international.

Successive governments have been trying to sell the debt-laden airlines, but companies have been hesitant to acquire the national carrier over its enormous debt.

Besides Air India, the Tatas own a 51 percent stake in Vistara, with Singapore Airlines holding the remaining 49 percent and an 84-percent stake in AirAsia.

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