BOOM

Trending Searches

    SUPPORT
    BOOM

    Trending News

      • Fact Check 
        • Fast Check
        • Politics
        • Business
        • Entertainment
        • Social
        • Sports
        • World
      • Law
      • Explainers
      • News 
        • All News
      • Decode 
        • Impact
        • Scamcheck
        • Life
        • Voices
      • Media Buddhi 
        • Digital Buddhi
        • Senior Citizens
        • Videos
      • Web Stories
      • BOOM Research
      • BOOM Labs
      • Deepfake Tracker
      • Videos 
        • Facts Neeti
      • Home-icon
        Home
      • About Us-icon
        About Us
      • Authors-icon
        Authors
      • Team-icon
        Team
      • Careers-icon
        Careers
      • Internship-icon
        Internship
      • Contact Us-icon
        Contact Us
      • Methodology-icon
        Methodology
      • Correction Policy-icon
        Correction Policy
      • Non-Partnership Policy-icon
        Non-Partnership Policy
      • Cookie Policy-icon
        Cookie Policy
      • Grievance Redressal-icon
        Grievance Redressal
      • Republishing Guidelines-icon
        Republishing Guidelines
      • Fact Check-icon
        Fact Check
        Fast Check
        Politics
        Business
        Entertainment
        Social
        Sports
        World
      • Law-icon
        Law
      • Explainers-icon
        Explainers
      • News-icon
        News
        All News
      • Decode-icon
        Decode
        Impact
        Scamcheck
        Life
        Voices
      • Media Buddhi-icon
        Media Buddhi
        Digital Buddhi
        Senior Citizens
        Videos
      • Web Stories-icon
        Web Stories
      • BOOM Research-icon
        BOOM Research
      • BOOM Labs-icon
        BOOM Labs
      • Deepfake Tracker-icon
        Deepfake Tracker
      • Videos-icon
        Videos
        Facts Neeti
      Trending Tags
      TRENDING
      • #Operation Sindoor
      • #Pahalgam Terror Attack
      • #Narendra Modi
      • #Rahul Gandhi
      • #Waqf Amendment Bill
      • #Arvind Kejriwal
      • #Deepfake
      • #Artificial Intelligence
      • Home
      • News
      • Air India Sale: Tata Group Wins...
      News

      Air India Sale: Tata Group Wins Bid, Reunites After 68 Years

      The airline, which was nationalised by the government in 1953, is coming back to the Tata Group after 68 years

      By - Mohammed Kudrati |
      Published -  8 Oct 2021 5:01 PM IST
    • Boomlive
      Air India Sale: Tata Group Wins Bid, Reunites After 68 Years

      Talace Private Limited, a wholly owned subsidiary of Tata Sons, has won the bid for Air India, the government announced on Friday; stating that the company bid ₹18,000 crores. This amount was ₹2,900 crores more than the runner-up: a consortium led by SpiceJet's promoter Ajay Singh. The bid includes a debt retention of ₹15,300 crores and a cash component of ₹2,700 crores.

      The sale does not include non-core assets, and a large portion of Air India's debt. which will be hived off to a government-held special purpose vehicle: Air India Assets Holding Limited (AIAHL). "It (assets being retained by AIAHL) includes Nariman Point, Air India's headquarters, some other buildings; there are subsidiaries where Air India has investments, these will be hived off", said Tuhin Kant Pandey, Secretary of Department and Public Assets of the Ministry of Finance, on the non-core assets that will be retained by the government.

      An SPV is a body or corporation set up to achieve a particular purpose, and is commonly used to isolate risk.

      "Just to make it clear, debt of ₹46,262 crore will be the debt taken over to AIAHL. ₹14,718 crores are the assets which will be taken over by AIAHL, and 2,700 crores cash, equity. So net impact will be ₹28,845 crores", said Pandey on the arithmetic behind the assets and liabilities of the airline being retained by the government.

      The transaction will be completed by December this year.

      This brings the ownership of Air India full circle after 68 years, as the group initially operated the airline till the Indian government nationalised it in 1953.

      Ratan Tata, the Chairman Emeritus of Tata Sons has welcomed this development of Air India coming back into its fold.


      Welcome back, Air India 🛬🏠 pic.twitter.com/euIREDIzkV

      — Ratan N. Tata (@RNTata2000) October 8, 2021

      The announcement by the government follows a high-level meet of the Air India Specific Alternative Mechanism formed in 2020 that comprises of the Union Minister of Home Affairs (Amit Shah), Commerce and Industry (Piyush Goyal), Finance and Corporate Affairs (Nirmala Sitharaman) and Civil Aviation (Jyotiraditya Scindia), which approved of the price bid on October 4. Before that, the bids for Air India were opened on September 29.

      Air India has become the third airline in India to be associated with the Tata Group in India. The conglomerate already operates Vistara in association with Singapore Airlines and Air Asia in India.

      This announcement fulfils an objective of the government to finish the privatisation process of the loss-making airline, which they had repeatedly said would be completed by financial year 2022. In financial year 2020 (FY20), the airline made a loss of near ₹7,700 crores as compared to a loss of ₹8,470 crores in the previous year.

      In fact, the airline has suffered a loss every year since its merger with Indian Airlines in 2007 - 2008.

      Also Read: Explained: India's Coal Supplies Are Running Dangerously Low

      History of Air India

      JRD Tata, India's first holder of a commercial pilot license, started an airline called Tata Airlines in 1932.

      In 1946, the company becomes public, and was known as Air India. The international arm of the airline, called Air India International, was launched in 1948, with flights to Europe.

      According to a blog by the Tatas, this was the first joint enterprise between a public and private enterprise in the country, as the government owned a 49% stake, the Tatas a 25% stake and the rest was held publicly.

      In 1953, the airline was nationalised as a single state entity. JRD Tata served as the chairman of a nationalised Air India and on the board of Indian Airlines for the next 25 years.

      During his term as Chairman of the Tata Group in the 1990s, Ratan Tata once again made a bid to take over Air India. The Tata group in alliance with Singapore Airlines offered to buy Air India but the deal couldn't go through, a move reported to have been foiled by rivals in the aviation sector.

      Also Read: Explained: What Are Social Stock Exchanges, How Will It Help?


      Tags

      Air IndiaTata GroupTata SonsJRD Tata
      Read Full Article
      Next Story
      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker. Please reload after ad blocker is disabled.
      X

      Subscribe to BOOM Newsletters

      👉 No spam, no paywall — but verified insights.

      Please enter a Email Address
      Subscribe for free!

      Stay Ahead of Misinformation!

      Please enter a Email Address
      Subscribe Now🛡️ 100% Privacy Protected | No Spam, Just Facts
      By subscribing, you agree with the Terms & conditions and Privacy Policy connected to the offer

      Thank you for subscribing!

      You’re now part of the BOOM community.

      Or, Subscribe to receive latest news via email
      Subscribed Successfully...
      Copy HTMLHTML is copied!
      There's no data to copy!