01 Oct 2021: Tata Sons wins bid to take over Air India: Report
Tata Sons is set to take over Air India after winning the bid for the national carrier, Bloomberg reported. A panel of Ministers, headed by Home Minister Amit Shah, has accepted the conglomerate's proposal to acquire the state-run airline. An official announcement about this is expected in the coming days, according to the publication. Here are more details on this.
Details: Air India returns to Tata after decades
Tata was selected ahead of an offer from Ajay Singh, the promoter of Indian airline operator SpiceJet Limited, the report said. The development marks the return of Air India to Tata Group after 67 years. The company had founded the airline in October 1932, naming it Tata Airlines. The Indian government had nationalized it in 1953.
Losses: Air India has suffered losses of over Rs. 70,000 crore
Air India has been marred by losses since its merger with domestic operator Indian Airlines in 2007. In fact, the government loses nearly Rs. 20 crore every day to run the airline and the total losses have reached more than Rs. 70,000 crore, officials say. It has been surviving through debt for the past several years.
Future: Air India adds a third airline brand to Tata's fleet
With this bid, Tata Group will get control of 4,400 domestic and 1,800 international landing and parking slots at airports across India as well as 900 slots at foreign airports. Separately, Air India adds a third airline brand to Tata's fleet as the conglomerate already holds a majority stake in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.
Fact: Rs. 23,000 crore debt comes as part of the deal
The winning bidder will also be handed over a debt of nearly Rs. 23,000 crore. Meanwhile, the remaining of over Rs. 60,000 crore debt will be taken up by the government-owned Air India Asset Holdings Ltd. (AIAHL).