INSUBCONTINENT EXCLUSIVE:
In October last year, the Centre had sold Air India to Tatas for Rs 18,000 crore.New Delhi:
Tata group has
officially taken over Air India from the government on Thursday
"We are totally delighted to have Air India back at the Tata group and are committed to making this a world-class airline," Tata Sons
Chairman N Chandrasekaran said
Mr Chandrasekaran also met Prime Minister Narendra Modi ahead of the official handover
"The strategic disinvestment transaction of Air India successfully concluded today with transfer of 100 per cent shares of Air India to M/s
Talace Pvt Ltd along with management control
A new Board, led by the Strategic Partner, takes charge of Air India," Department of Investment and Public Asset Management (DIPAM)
Secretary Tuhin Kanta Pandey stated
In October last year, the government had sold Air India to Talace Private Limited -- a subsidiary of the Tata group's holding
company -- for Rs 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 per cent stake in the airline
Then, the Centre had 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 per cent stake in ground handling arm Air India SATS.Tatas had beaten the Rs 15,100-crore offer by a consortium
led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent 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
get to retain non-core assets such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air
India Building in New Delhi.At present, Air India controls over 4,400 domestic and 1,800 international landing and parking slots at domestic
airports as well as 900 slots abroad.Of the airline's 141 aircraft that Tatas would get, 42 are leased planes while the remaining 99 are
owned.Over the last decade, more than Rs 1.10 lakh crore was infused by way of cash support and loan guarantees in the loss-making airline
Currently, Air India is suffering losses of around Rs 20 crore per day.Tatas had set up Tata Airlines in 1932, which was later -- in 1946 --
The government had taken control of the airline in 1953, but JRD Tata continued to be its chairman till 1977
The handover will be the homecoming of Air India to Tatas after 69 years.
