Tata Sons will regain control of Air India as it takes over 100 per cent of the government’s stake in the national carrier, marking the end of a protracted struggle to sell the airline and the first step in the Centre’s mega privatisation push.
The Mumbai-based conglomerate placed a winning bid of Rs 18,000 crore, of which Rs 2,700 crore will be paid in cash and the remaining Rs 15,300 crore will be absorbed from the over Rs 60,000 crore debt the airline had as of August 31, 2021.
This marks the return of Air India to the Tatas. “Welcome Back Air India,” said Ratan Tata, Tata Sons’ chairman emeritus on Twitter after the announcement.
Jehangir Ratanji Dadabhoy (JRD) Tata founded the airline in 1932. It was called Tata Airlines then. In 1946, the aviation division of Tata Sons was listed as Air India and in 1948, Air India International was launched with flights to Europe.
The international service was among the first public-private partnerships in India, with the government holding 49 per cent, the Tatas keeping 25 per cent and the public owning the rest. In 1953, Air India was nationalised.
The government is selling 100 per cent of its stake in the state-owned national airline, including Air India’s 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.
The stake sale process, which began in January 2020, faced delays due to the COVID-19 pandemic. In April 2021, the government asked potential bidders to put in financial bids. September 15 was the last day for putting in financial bids.
The airline will give Tata control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.
