The Tata group has completed the transaction for the purchase of Air India from the Government of India and takes over management and control of the airline, starting from January 27, 2022. Tata group has emerged as the successful bidder of the divestment process of the national carrier Air India. The 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.
The transaction covers three entities – Air India, Air India Express, and AI SATS. Air India is India’s flag carrier and premier full-service airline. Air India Express is a low-cost carrier. AI SATS provides a comprehensive suite of ground handling and cargo handling services. The Tatas will get ownership of iconic brands including Air India, Indian Airlines & the Maharajah. Air India has a fleet of 117 wide-body and narrow-body aircraft and AIXL has a fleet of 24 narrow-body aircraft. A significant number of these aircraft are owned by Air India.
Air India provides a unique and attractive international footprint. More than 2/3rd of Air India’s consolidated revenues come from the international market. It is the number one player from India in the international market having a strong footprint across geographies like North America, Europe, and the Middle East with attractive slots & bilateral rights. The Air India frequent flyer program has more than 3 million members.
On this occasion, Mr N Chandrasekaran, Chairman, Tata Sons said: “We are excited to have Air India back in the Tata group, and are committed to making this a world-class airline. I warmly welcome all the employees of Air India, Air India Express, and AI SATS to our Group, and look forward to working together.
We are thankful to the Government of India and its various departments for the successful completion of this important transaction.”
The formal handover today follows the announcement which had earlier been made in October 2021, of the Tata group having been selected by the Government as the new owner of the airline. Consequent to the acquisition on October 8, 2021, the Tatas will own a 100% stake in Air India as also 100% in its subsidiary Air India Express and 50% in the joint venture Air India SATS. The total permanent and contractual employee strength of Air India & AIXL is 13,500.
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