INSUBCONTINENT EXCLUSIVE:
Air India has accumulated losses of over Rs 70,000 croreNew Delhi: Tata Sons has won the bid to acquire national carrier Air India on Friday
The salt-to-software conglomerate placed a winning bid of Rs 18,000 crore re-acquire the airline more than half a century after it ceded
control to the government
Apart from 100 per cent stake in Air India and its low-cost arm, Air India Express, the winning bid also includes a 50 per cent stake in
emerged as the winning bidder, DIPAM Secretary Tuhin Kanta Pandey said.As on August 31, 2021, Air India has a total debt of Rs 61,562 crore,
out of that Rs 15,300 crore will be taken over by the bidder, Mr Pandey stated
Aviation Secretary Rajiv Bansal said that the winning bidder will not retrench any employee for minimum period of one year and if retrenched
after a year, they will have to be offered VRS (voluntary retirement scheme).Gratuity and Provident Fund (PF) benefits will be provided to
all employees, he added.Mr Bansal also mentioned, "As of today, there are 12,085 employees in Air India out of which 8,084 are permanent and
Besides this, Air India Express has a employee strength of 1,434."Earlier this month both Tata Sons and SpiceJet chairman Ajay Singh (in his
private capacity) had placed bids
Reports last month that Tata had won the bid were played down by Union Minister Piyush Goyal, who said then that nothing had been
finalised.In December 2020, the government invited expressions of interest for the divestment of Air India.Four bidders entered the race,
with the Tatas and Ajay Singh the only ones to make it to the final stages.Air India has accumulated losses of over Rs 70,000 crore and the
government loses nearly Rs 20 crore every day.This was the second attempt by the Narendra Modi government to sell Air India.The centre made
an attempt in March 2018 but its expression of interest - to sell a 76 percent stake - had no takers over concerns regarding the airline's
burgeoning debt.Despite its precarious finances, Air India still controls more than 4,400 domestic and 1,800 international landing and
parking slots at domestic airports, and 900 slots overseas.Air India began life as Tata Air Services in 1932 when it was founded by JRD Tata
The company was nationalised by the government in 1953
JRD Tata continued to be its chairman till 1977.Air India became the first Asian airline to induct jet aircraft and started flying to New
York in 1960.At present, the Tata Group operates Vistara in partnership with Singapore Airlines and AirAsia India in partnership with
