Homecoming for the Maharaja, Tata Sons Wins Air India Bid
After 68 Years, the Maharaja of the sky returns to its origin. Tata Sons won the bid of debt-laden Air India by quoting Rs 18,000 crore.
The Tatas will own 100% stake in Air India, as also 100% in its international low-cost arm Air India Express and 50% in the ground handling joint venture, Air India SATS. Apart from 141 planes and access to a network of 173 destinations including 55 international ones, Tatas will also have the ownership of iconic brands like Air India, Indian Airlines and the Maharajah.
Air India with 127 aircraft is reportedly reeling under a debt of over Rs 60,000 crore.
“Talace Pvt Ltd has quoted an enterprise value of ₹18,000 crore. Of this, ₹15,300 crore is the debt component of Air India to be taken on by the winner, and the remaining ₹2,700 crore will be cash paid to the government,” said Secretary of Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey during a press briefing.
JRD Tata had started Air India as Tata Airlines in 1932 and sold it to the government in 1953.
Happy over the homecoming of the airlines, Ratan tweeted,
Welcome back, Air India 🛬🏠 pic.twitter.com/euIREDIzkV
— Ratan N. Tata (@RNTata2000) October 8, 2021