INSUBCONTINENT EXCLUSIVE:
is set to take over ailing Air India Ltd
again, more than half a century after the country's biggest conglomerate ceded control to the state, ending the government's hold over an
airline that for decades defined the lofty ambitions of a newly independent nation.A panel of ministers accepted a proposal from
bureaucrats, who recommended the conglomerate's bid ahead of an offer from entrepreneur Ajay Singh, according to people with knowledge of
the matter, who asked not to be identified as the decision isn't yet public
An official announcement is expected in coming days, two of the people said.A civil aviation ministry spokesman didn't immediately respond
A finance ministry spokesperson couldn't immediately be reached
A representative for Tata Sons declined to comment.The proposed handover is a key victory for Prime Minister Narendra Modi, who has embarked
on a bold privatization plan to plug a widening budget deficit
It also puts an end to a decades-long struggle to offload the money-losing flag carrier
Multiple governments have tried to sell the airline -- which began life as Tata Airlines in 1932 -- but those attempts were either met with
political opposition or a lack of interest from potential buyers.For Tata Sons, the holding company for the salt-to-software empire and
owner of British luxury carmaker Jaguar Land Rover, the recommendation means it's coming back to an asset it started almost 90 years
ago.Established by legendary industrialist and philanthropist J.R.D
Tata, who was India's first licensed pilot, the airline originally flew mail in the 1930s between Karachi in then-undivided, British-ruled
India and Bombay, now known as Mumbai.Once it turned commercial and went public in the 1940s, Air India quickly became popular with those
who could afford to take to the skies
Its advertisements featured Bollywood actresses and passengers were treated to champagne and porcelain ashtrays designed by surrealist
painter Salvador Dali.However, with the advent of private carriers in the 1990s, and then a rush of low-cost, no-frills airlines in the
mid-2000s, Air India lost its edge in both domestic and international markets
The carrier, known for its Maharaja mascot, suddenly wasn't the only option for flying overseas and its reputation for impeccable service
and hospitality began to ebb.Gulf carriers, including Emirates Airline and Etihad Airways PJSC, also began to offer seamless, and cheaper,
connections to Europe and the U.S
via their hubs in Dubai and Abu Dhabi, hurting Air India even further.After Air India merged with state-owned domestic operator Indian
in 2007, losses started to mount and by 2013, the country's then-Civil Aviation Minister said privatization was key to its survival
In 2017, the government approved that route and a committee was set up to start the process.This most-recent sale attempt hasn't been easy
IndiGo, the only airline to have publicly shown interest in buying parts of the carrier, dropped out of the reckoning in 2018, saying it
didn't have the wherewithal to acquire Air India in its entirety and make it profitable.Ultimately that time around there were no bidders
and the government had to sweeten the deal by allowing suitors to decide how much of the carrier's debt they wanted to take on
Even so, politicians belonging to Modi's own party and unions have resisted the plan.For Tata Group, Air India adds a third airline brand to
its stable, considering the conglomerate already holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore
The Economic Times newspaper had previously reported that Tata may emerge as the winning bidder.Air India -- which hasn't turned a profit
since its 2007 merger with Indian Airlines and is now saddled with a debt of around 600 billion rupees ($8.1 billion) -- does have some
attractive assets, including prized landing and parking slots at London's Heathrow airport, which may help Vistara lure business travelers
with direct flights to Europe.The purchase, once it goes through, will be a test of the group's aviation acumen
Tata Group has faced criticism for not running its existing aviation businesses efficiently, even though they represent a tiny portion of
overall revenue.Cyrus Mistry, who succeeded Ratan Tata as chairman of the conglomerate but was later ousted in India's most high-profile
boardroom coup, raised the alarm in an October 2016 letter, saying he pushed backed against both airline ventures.(Except for the headline,
this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
