Tata Group takes over loss-making national carrier Air India
The Tata Group has taken over the debt-ridden national carrier Air India which had been founded by the salt-to-steel conglomerate in 1932.
The Tata Group has taken over the debt-ridden national carrier Air India which had been founded by the salt-to-steel conglomerate in 1932.
Tata Group had founded Air India in 1932 before it was taken over by the government in 1953. The national carrier has now been officially handed over to the Tata Group, which bought the airline in October last year.
The Tatas paid nearly $2.4bn (£1.7bn) after the government made the terms of the debt less onerous for the buyer. The handover brings to an end a years-long attempt to sell Air India, which has racked up losses worth $9.5bn, BBC reported.
Tata Group chairman Natarajan Chandrasekaran met Prime Minister Narendra Modi on Thursday before the handover.
Shri N Chandrasekaran, the Chairman of Tata Sons called on PM @narendramodi. @TataCompanies pic.twitter.com/7yP8is5ehw
— PMO India (@PMOIndia) January 27, 2022
The existing board of directors for the airline has resigned, making way for a new board appointed by the Tata Group. It’s unclear when Air India will begin flying under the Tata banner.
The airline called the deal a “brand new chapter” in its history. “Two iconic names come together to embark on a voyage of excellence,” it wrote on Twitter.
#FlyAI: A brand new chapter unfolds for Air India as part of the Tata Group.
Two iconic names come together to embark on a voyage of excellence.
Looking forward to soaring high propelled by our rich legacy & a shared mission to serve our Nation.
Welcome Aboard. @TataCompanies pic.twitter.com/iCVh5ewI7q
— Air India (@airindiain) January 27, 2022
The Tata Group too celebrated the handover.
Your arrival was much awaited, @airindiain. #AirIndiaOnBoard #ThisIsTata pic.twitter.com/OVJiI1eohU
— Tata Group (@TataCompanies) January 27, 2022
The sale is a boost to Mr Modi who had been keen to sell the government’s entire interest in the airline. It’s also the biggest disinvestment in government-owned assets and companies since Mr Modi came to power in 2014.
The government has been unable to divest its stake in several loss-making public companies despite its ambitious targets.
Air India has many assets, including prized slots at London’s Heathrow airport, a fleet of more than 130 planes and thousands of trained pilots and crew.
Tata Sons already run two airlines in India – Vistara, a full-service carrier in partnership with Singapore Airlines, and AirAsia India, a budget airline in partnership with Malaysia AirAsiaBhd.
Air India had been making losses since 2007 when it was merged with the state-owned domestic operator Indian Airlines. It remained operational due to taxpayer-funded bailouts.
