After a disinvestment plan that stretched for several decades, the government officially handed over the administration of Air India to Tata Sons. The airline is now officially owned by Talace, a subsidiary of the Tata Group’s holding company. The airline is now officially owned by Talace, a subsidiary of the Tata Group’s holding company.
As part of the deal, the Tata group will also be handed over Air India Express and a 50 per cent stake in ground handling arm Air India SATS.
“Your arrival was much awaited,” tweeted the Tata Group soon after the handover.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey confirmed to reporters that Air India has been officially handed over to Talace Private Limited.
The AI handover to Tata Sons was confirmed by the DIPAM Secretary Tuhin Kanta Pandey. Pandey said, “Air India has been handed over to Tata Sons.” He said that the new owners of Air India are Talace Pvt Ltd and the entire Rs 2,700 crore has been received by the government. Pandey added, “We have transferred shares. Entire Rs 15,300 crore of debt which was to be retained, that has been accepted.”
Tata Sons chairman N Chandrasekaran has said that he is “totally delighted” that the Air India handover process is complete and that he is ecstatic to have the national carrier back in the Tata Group after 67 years. He added that he is looking forward to working with everyone to create a world-class airline.
The Tata Sons boss noted, “We’re totally delighted that this process is complete and happy to have Air India back in the Tata Group. We look forward to walking with everyone to create a world-class airline.”
Union Civil Aviation Minister Jyotiraditya Scindia also tweeted about the Air India divestment process being “brought to a successful conclusion in a time-bound manner.” He added that this proves the government’s ability and resolve to carry out divestment procedures effectively in non-strategic sectors.
Scindia added, “Best wishes to the new owners. I am confident that the airline will bloom under their wings, and pave the way for a thriving and robust civil aviation industry in India.”
It is indeed noteworthy that the disinvestment process of @airindiain has been brought to a successful conclusion in a time-bound manner. This proves the govt’s ability, and the resolve to carry out disinvestment effectively in non-strategic sectors in the future.— Jyotiraditya M. Scindia (@JM_Scindia) January 27, 2022
With the transfer on Thursday, the Tatas will be in control of three airlines in the country and nearly 27 per cent market share in the aviation sector. The other airlines are Vistara in which the Tatas have a 51 per cent stake and Air Asia where they have a 84 per cent stake.
Last year in October, Tata Sons subsidiary, Talace Pvt. Ltd. emerged as the winning bidder for the debt-laden national carrier after quoting an enterprise value of Rs 18,000 crore as part of a disinvestment process undertaken by the government.
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Source: News18