Tata Group has officially taken over Air India from the government on Thursday. Tata Sons Chairman N Chandrasekaran also met Prime Minister Narendra Modi ahead of the official handover. “We are totally delighted to have Air India back at the Tata Group,” Tata Sons Chairman N Chandrasekaran said.
In October last year, the government had sold Air India to Talace Private Limited- a subsidiary of the Tata group’s holding company- for ₹18,000 crore.
After that, a Letter of Intent (LoI) was issued to the Tata group confirming the government’s willingness to sell its 100% stake in the airline. Then, the Centre has signed the share purchase agreement (SPA) for this deal. As a part of the deal, the Tata group will also be handed over Air India Express and a 50% stake in ground handling arm Air India SATS.
Tata’s had beat the ₹15,100 crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of ₹12,906 crore set by the government for the sale of its 100% stake in the loss-making carrier.
While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tata Group’s stable – it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines.
India’s first international budget carrier, Air India Express was launched in 2005 to meet the need for affordable services on short and medium-haul routes connecting smaller towns directly to the Gulf and South-East Asia regions.
Air India, along with Air India Express, has always been playing a pivotal role in standing by the Nation in its hour of crisis. In an epic mission, Air India has been evacuating stranded people from all over the world from and to India in the aftermath of the COVID-19 outbreak through the Government’s Vande Bharat Mission and Air Transport Bubble flights.
— PMO India (@PMOIndia) January 27, 2022