With this deal, the government which controls the airline will divest its 100 percent stake in Air India, Air India Express, and 50 percent stake in ground handling company (AISATS).
Tata Sons has finally won the winning bid for acquiring debt-laden Air India. Tatas were among the frontrunners in acquiring the national career, while the other major contender being SpiceJet. With this deal, the government which controls the airline will divest its 100 percent stake in Air India, Air India Express, and 50 percent stake in ground handling company (AISATS). The government loses nearly ₹ 20 crores every day to run the national carrier, which has accumulated losses of over ₹ 70,000 crores, officials have said.
Union finance minister Nirmala Sitharaman, commerce minister Piyush Goyal and aviation minister Jyotiraditya Scindia were among the committee members that evaluated the bids. The government plans to complete the handover of the airlines to its new owners by December. Almost three years ago, an effort to auction a majority stake attracted no bids, forcing the government to ease the terms. The government also had to extend the deadline multiple times due to the pandemic.
The airline was founded by JRD Tata back in 1932 but was nationalized and later acquired by the Indian Government post-independence. So Tata was among the favorites to acquire the flag carrier, considering its financial stability and also its passion for Air India. Tata already operates two popular Airlines in India, Vistara and Air Asia India. Post acquisitions, there are chances that Tata will combine these separate airlines to form one of the biggest Airlines in India.
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