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Tuesday, December 7, 2021
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Tata Sons takes over 100% stake of Air India; wins bid at ₹18,000 Crore

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Tata Sons have successfully won the bidding of Air India at ₹18,000 crores and would be taking over the debt-laden airline.

The Finance Minister said that there would be no dismissal of any staff of Air India for a year. With this, the airline will return to the Tatas who have extended records of national carriers. JRD Tata founded the airline in 1932 and at that time known as Tata Airlines.

Bidding and competitors

Tata Sons bid ₹18,000 crores for the government’s 100% stake in Air India, a finance ministry official informed reporters. The bid of the consortium which was led by SpiceJet chairman Ajay Singh was ₹15,000 Crore.

Tata Sons changed into the frontrunner as they have bid the highest, however, the political nod at the choice has become awaited. Reports stated the Tatas also are inclined to accumulate up to 15% of Air India’s debt.

Statement by spokesperson of Tata

An official spokesperson of Tata sons said “At the Tata group, we are delighted to be declared as the winner of the bid for AIR INDIA. This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline. It will be our endeavour to build a world-class airline which makes every Indian proud.On this occasion, I would like to pay tribute to JRD Tata, pioneer of Indian aviation, whose memory we cherish.”

Losses of Air India

The Indian Government has been looking to sell Air India for a while now however the selling process witnessed numerous hiccups, such as that of the pandemic.

To maintain Air India flying, the authorities lost ₹200 million each day and the accrued loss is now over ₹700 billion, officers have said.

Tata Sons to manage 4,400 domestic and 1800 global take-offs

In this bidding, Tata Sons bid the highest which results in Air India’s 100% stake belonging to Tata Sons.

The Tatas will now manage Air India’s 4,400 domestic and 1,800 global landings and parking slots at domestic airports, in addition to 900 slots at airports overseas, which include London’s Heathrow Airport.

The Tata Sons will also get 50% of AISATS which provides cargo and ground handling services at major Indian Airports apart from 100% stakes of Air India.

Air India provides flights in maximum location

Air India has one of the maximum flight providers in India flying to 98 locations which includes 56 domestic locations with around 2,712 departures each week and 42 worldwide locations with around 450 departures each week as of November 1, 2019.

Statement by Ratan N. Tata

Tata Sons

“On an emotional note, Air India, under the leadership of Mr. JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr. JRD Tata would have been overjoyed if he was in our midst today,” the statement added.

Also Read: RAILWAY MINISTRY EXTENDS COVID GUIDELINES FOR 6 MONTHS, IMPOSITION OF FINE ON VIOLATORS

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