On October 25, the government of India signed a ₹18,000 crore deal handing over 100 percent stake in Air India, AI Express, and AI-SATS Airport Services to Tata Sons. As part of the deal, Tata Group was to get total control of the airline and start flying it as a private entity by the end of December 2021.
Tatas beat the ₹15,100-crore offer by a consortium led by SpiceJet and ₹12,906 crore set by the government for the sale of a 100 percent stake in the lossmaking carrier.
However, it seems that the Air India takeover is likely to be delayed ostensibly because of regulatory procedures which are taking longer than expected. The takeover of the airline which has an 11.5 percent share in the domestic and 42.8 per cent share in the international market is now likely to happen sometime by the end of January 2022.
What does Tata Group get?
Besides a 100 percent stake in Air India, its subsidiary Air India Express, and a 50 percent holding in ground-handling company AISATS, the Tatas would get 141 aircraft- 99 owned and 42 leased. The Tata Group will also get access to 4,400 domestic and 1,800 international landing and parking slots at domestic airports and 900 slots at airports overseas.
The deal however does not include real estate. The Tatas would not get a stake in Air India’s other ventures like Hotel Corporation of India, Air India Engineering Services, Airline Allied Services, and Air India Transport Services as well as non-core assets like the Vasant Vihar Housing colony, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi.
This story is from the January 2022 edition of Cruising Heights.
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This story is from the January 2022 edition of Cruising Heights.
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