Air India takeover: The national carrier returns to its founder after 68 years as Tata sons acquire Air India

Publish Date: 08 Oct, 2021 |
 

National Carrier Air India has returned back to its founder after 68 years, with Tata Sons emerging as the winner of the bid for acquiring the carrier. The final bid was submitted by the group on September 15,2021. The bid was approved by Air India Specific Alternative Mechanism(AISAM), which is led by Union Home Minister, Amit Shah.

The government had decided to sell 100% of its shares in the national carrier after it incurred heavy losses regularly, after its merger with Indian Airlines in 2007. The total debt on Air India, as of August 31, is Rs, 61,562 core. Tata group will take Rs. 15,300 crore debt while the remaining Rs. 46,262 crore will be borne by SPV.

Also, in terms of physical assets, Tata Sons will get control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, besides 900 slots at airports overseas.

DIPAM Secretary Tuhin Kanta Prasad informed that the reserved price for Air India was set before opening the sealed bids and the Tata Group will receive the shares by December 2021.

Since, 2009-10, over 1,10,276 crore rupees were spent by the government on Air India.

Also, the new owner has decided to retain all the present employees for the first year."The current bidder (Tata Group) will retain all the current employees of Air India for the first year. In the second year, they will see who to retain and can also give (VRS) voluntary retirement from service,” said Rajiv Bansal, Civil Aviation Secretary.

 
 

 

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