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“Welcome Back, Air India!”, Says TATA

Air India

Tata Sons chairman N Chandrasekaran has said that he is “totally delighted” that the Air India handing over process has been completed and it landed back in the Tata Group after 67 years. He further said he is keen to work with everyone to create a world-class airline.

The Tata Sons boss said, “We’re totally delighted that this process is complete and happy to have Air India back in the Tata Group. We look forward to walking with everyone to create a world-class airline.”

Union Civil Aviation Minister Jyotiraditya Scindia informed about the divestment plan on Twitter. He said “It is indeed noteworthy that the disinvestment process of @airindiain has been brought to a successful conclusion in a time-bound manner. This proves the govt’s ability and the resolve to carry out disinvestment effectively in non-strategic sectors in the future”.

He further said, “Best wishes to the new owners. I am confident that the airline will bloom under their wings, and pave the way for a thriving and robust civil aviation industry in India.”

The Tata Group shared an image of an Air India plane in the sky with the words, “Welcome Back, Air India!” written behind it as the plane flies in the sky. The tweet read, “Your arrival was much awaited, Air India.”

DIPAM Secretary Tuhin Kanta Pandey also confirmed the successful handover of Air India to TATA. Pandey said, “Air India has been handed over to Tata Sons.” He said that the new owners of Air India are Talace Pvt Ltd and the entire Rs 2,700 crore has been received by the government. Pandey added, “We have transferred shares. Entire Rs 15,300 crore of debt which was to be retained, has been accepted.”

The 12,000 people will now work for the Tatas, according to Civil Aviation Ministry Secretary Rajiv Bansal, and they will be retained for a year. The Tata Sons CEO met Prime Minister Narendra Modi before the transfer.

The government declared on October 8, 2021, that Talace Pvt Ltd, a fully owned subsidiary of Tata Sons, had won the bid to buy Air India. For 100% ownership, the Group offered Rs 18,000 crore. The Tata Group was set to pay Rs 2,700 in cash and assume the airline’s debt of Rs 15,300 crore. The sale of Air India Express and AISATS, the ground handling arm, is also part of this arrangement.

Under the deal, Tata Group will not retain the non-core assets as the Vasant Vihar Housing colony of AI, AI building at Mumbai’s Nariman Point and Air India building in Delhi. Of the 141 Air India aircraft Tata is getting, 42 are leased and 99 are owned.

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Harshita Sharma

A financial news enthusiast and a keen observer of the stock market, I bring to you all the updates from the world of business, and finance. So, check out my posts and stay tuned with the major (informational) happenings.

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