- Tata group’s holding company, Tata Sons through its wholly-owned subsidiary Talace Pvt Ltd submitted a winning bid of Rs.18,000 Crore as the Enterprise Value of Air India.
- Air India has a total debt of Rs.61,562 crore, out of that Rs.15,300 crore will be taken over by Tata.
- The transaction does not include non-core assets including land and building, valued at Rs.14,718 crore, which are to be transferred to Government of India’s Air India Asset Holding Limited.
- Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents.
- Tata group also has presence in Aviation Industry. It operates full-service airline Vistara, a joint venture with Singapore Airlines, and budget airline AirAsia India, a venture with Malaysia’s AirAsia Group Bhd.
Air India Ltd:
- Air India was founded as Tata Airlines in 1932. It was founded by JRD Tata and he continued to be its chairman till 1977. Air India was nationalized in 1953.
- It provides domestic and international air transport services for both passengers and cargo. Air India also provides ground handling and engineering & maintenance services, as well as low-cost travel options and Domestic regional connectivity through its subsidiaries – Air India Charters Limited (Air India Express) and Airline Allied Service Limited (Alliance Air).
- Air India is a loss making airline since 2007 and has a very high number of employees per aircraft.
- A successful privatization of Air India is a major victory for the Indian government as the loss-making Air India has cost taxpayers an average of nearly $3 million a day for the past decade.
- Also this acquisition will get Tata, the ownership of iconic brands like Air India, Indian Airlines & the Maharajah.
- Tata will be consolidating its position and has been working on a plan to combine Vistara, Air India, and AirAsia under a common umbrella.
- Air India coming back to the Tata group was also an emotional moment for the group as Ratan Tata, Tata Group Chairman, tweeted, welcome back, Air India. He said that JRD Tata would have been overjoyed if he was alive.
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