Tata Group will pay Rs 18,000 crore to acquire Air India from the government. Of this, 15% will go to the government and the rest will go toward clearing debt.
Tata Airlines Acquire Air India with winning bid of Rs 18000 CRORE
- The winning bid is for earliest 18000 crore as enterprise value (EV) consideration for,
- TATAS Now have two budget airlines ,
- Express and AirAsia INDIA – and as many full service ones – AIR INDIA and Vistara.
- Interest of the employees and retired employees would be taken care of by the winning bidder,
- In total Air India has 8 logos and all of them Will be transferred to TATAS.
In 1953, Air India was nationalised, and it kept the national flag flying till declining service quality, an ageing fleet, excess staff, low productivity meant it was no more the preferred airline. All eyes are now back on the airline and the Tatas, which already owns two carriers.
Of the ₹18,000 crore, the government will get ₹2,700 crore in cash, while the remaining amount will be in the form of debt transferred to the new entity. With this, the entire 100 percent shareholding of AI along with AI’s shareholding in AI Express Limited (AIXL) and AISATS will pass on to new the owner.
How much is Air India Dept ?
Air India was increasing a loss of Rs 20 crore per day.
As of August 31, the airlines dabt’s amounted to RS 61,562 CRORE,
- The deal completes a full circle as Air India was founded in 1932
- under the name Tata Airlines by family scion and aviation enthusiast JRD Tata.
- Tata Sons will acquire AI, 50 per cent of AI, Sats, and Air India Express.
- The government will get ₹ 2,700 crore in cash from the sale. The rest is the government’s debt,
- which Air India will take over.
Reacting to the news of Tata Sons winning the bid to acquire Air India
Businessman Harsh Goenka on Saturday said,
“There are very, very rich people who may be the ‘Rajas’ of India.
But there is only one group who can be called the ‘Maharaja’ of our country.”
The government had on Friday announced the ₹18,000 crore winning bid.
The deal is expected to be completed by the end of December this year.
Ajay Singh of Tata Group and SpiceJet had bid.
Government selling entire stake in AI and AI Express
JRD’s pilot
This signals the end of the process of Air India’s sale that began in July 2017, and the start of a new flight path, with the return of the airline to the Tatas. In 1932, Jehangir Ratanji Dadabhoy (JRD) Tata founded the carrier, calling it Tata Airlines.
In 1946, the aviation division of Tata Sons was listed as AI and in 1948, AI International was launched with flights to Europe. The international service was among the first public-private partnerships in India, with the government holding 49 per cent, the Tatas 25 per cent and the public owning the rest.