Moneycontrol PRO
you are here: HomeNewsBusiness
Live now
auto refresh
October 08, 2021 / 07:44 PM IST

Air India Sale Highlights: Reserve price for Air India was set at Rs 12,906 crore; Tatas quoted Rs 18,000 crore

Air India Sale Highlights: Tata Group, the winning Air India bidder, had quoted an enterprise value of Rs 18,000 crore, which, DIPAM Secretary Tuhin Kanta Pandey said, was well above the reserve price set by the government.

Air India Sale Highlights: The Government of India on October 8 announced the winning bidder for the national carrier Air India. The government's DIPAM Secretary and the Secretary of Civil aviation addressed a press conference at 4 pm, where they announced that the Tatas won the Air India bid.

Air India will go back to the Tatas after a gap of 68 years as the Government of India approved

its bid for the divestment sale. The Tata Sons emerged as the winning bidder at Rs 18,000 crore. The Tata Group outbid a consortium led by SpiceJet CMD Ajay Singh, who had bid Rs 15,100 crore to acquire Air India.

Post-acquisition, the Tata Group will have a 100 percent stake in Air India and a 100 percent stake in its subsidiary the Air India Express, which is a low-cost carrier focused on short-haul international operations, primarily in the Middle East. The deal with the Government of India also gives the Tatas a 50 percent stake in the joint venture Air India SATS (on-ground airport services and cargo handling).

As the debt-ridden carrier returned to the Tata fold, Ratan Tata expressed rejoice over the homecoming by recalling Jehangir Ratanji Dadabhoy Tata, who in 1932 started Tata Airlines which became Air India in 1946. He said: “Mr. JRD Tata would have been overjoyed if he was in our midst today.”
  • October 08, 2021 / 07:24 PM IST

    Air India Sale LIVE Updates: Air India sale chronology

    1932: Jehangir Ratanji Dadabhoy (JRD) Tata founded the airline and named it Tata Airlines.

    1946: Aviation division of Tata Sons gets listed as Air India,

    1948: Air India International was launched with flights to Europe.

    1953: Air India nationalised

    2000-01: NDA government under Atal Bihari Vajpayee tried to sell a minority stake in Air India. Singapore Airlines along with the Tata group showed interest in buying the stake, but eventually Singapore Airlines pulled out mainly due to opposition to privatisation by trade unions.

    2004-14: Congress-led UPA governments did not pursue any privatisation agenda including that of Air India.

    2007-08: Air India started suffering losses every year since its merger with Indian Airlines.

    June 2017: Cabinet Committee on Economic Affairs (CCEA) gave in-principle approval to the consideration for strategic disinvestment of Air India and its five subsidiaries.

    March 2018: Government invites EoI from investors for buying 76 percent stake in Air India, remaining 26 percent to be with the government.

    May 2018: No bids received for Air India.

    June 2018: Government decides to go slow on Air India sale till oil prices soften.

    January 2020: Government floats EoI for Air India privatisation. Government to fully exit Air India by selling 100 percent.

    October 2020: Government sweetens deal; gives flexibility to investors to decide on the amount of Air India debt they want to absorb.

    December 2020: DIPAM Secretary said Air India EOI received "multiple bids".

    April 2021: Government starts inviting financial bids for Air India. September 15 last date to put in bids.

    September 2021: Income Tax department allows new owners of Air India to carry forward losses and set it off against future profits.

    September 2021: Tata Group, Spicejet Promoter Ajay Singh put in financial bids.

    October 2021: Government announces Tata group makes winning bid of Rs 18,000 crore for Air India.

  • October 08, 2021 / 07:02 PM IST

    Air India Sale LIVE Updates: IndiGo Airlines congratulates Tata Companies for winning Air India bid

  • ADVERTISEMENT
  • October 08, 2021 / 06:40 PM IST

    Air India Sale LIVE Updates: Air India’s return to Tatas marks new dawn for the airline: Civil Aviation Minister Jyotiraditya Scindia

    “Air India’s return to the Tata Group marks a new dawn for the airline! My best wishes to the new management, and congratulations to the Secretary of the Department of Investment and Public Asset Management (DIPAM) and the Ministry of Civil Aviation for successfully concluding the difficult task of paving a new runway for the airline to take off!” Union Minister for Civil Aviation, Jyotiraditya M Scindia said on October 8.

    He added: “I hope the airline will continue to deliver on its mission of bringing people closer through its successful operations.”

  • October 08, 2021 / 06:19 PM IST

    Air India Sale LIVE Updates: ‘Tata Group’s acquisition may result in consolidation in domestic civil aviation market’

    Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, said: “Tata Group’s acquisition of a 100% stake in Air India is likely to result in a consolidation in the domestic civil aviation market. With Air India, Vistara, and Air Asia having a current combined market share of 26.9% (as per DGCA), the Tata Group will emerge as the second-largest domestic airline after Indigo once the consolidation of the operations of all three airlines is completed.

    “Given the strong financial flexibility, availability of a larger fleet, and multiple brands catering to different customer segments, the Group is likely to have a competitive advantage over the other players. However, the ability to optimise costs, and streamline operations will be a formidable challenge and the key to profitability in the group’s airline operations.”

  • October 08, 2021 / 06:10 PM IST

    Air India Sale LIVE Updates: Govt has put in Rs 54,584 crores since 2009-10 as cash support & Rs 55,692 crores as guarantee support for Air India, which is a total of Rs 1,10,276 crores: Tuhin Kant Pandey, Secretary, DIPAM

  • ADVERTISEMENT
  • October 08, 2021 / 05:44 PM IST

    Air India Sale LIVE Updates: Next step will be issuance of Letter of Intent, signing of Share Purchase Agreement

  • October 08, 2021 / 05:34 PM IST

    Air India Sale LIVE Updates: JRD Tata would’ve been overjoyed: Ratan Tata on the Maharaja’s homecoming

    As the debt-ridden carrier returned to the Tata fold, Ratan Tata expressed rejoice over the homecoming by recalling Jehangir Ratanji Dadabhoy Tata, who in 1932 started Tata Airlines which became Air India in 1946.

    He said: “Mr JRD Tata would have been overjoyed if he was in our midst today.”

  • October 08, 2021 / 05:19 PM IST

    Air India Sale LIVE Updates: Tatas get 100% stake in Air India as part of deal

    Post-acquisition, the Tata Group will have a 100 percent stake in Air India and a 100 percent stake in its subsidiary the Air India Express, which is a low-cost carrier focused on short-haul international operations, primarily in the Middle East. The deal with the Government of India also gives the Tatas a 50 percent stake in the joint venture Air India SATS (on-ground airport services and cargo handling).

  • October 08, 2021 / 05:08 PM IST

    Air India Sale LIVE Updates: Tata Sons emerges winning bidder at Rs 18,000 crore. The Tata Group outbid a consortium led by SpiceJet CMD Ajay Singh, who had bid Rs 15,100 crore to acquire Air India.

  • ADVERTISEMENT
  • October 08, 2021 / 05:03 PM IST

    Air India Sale LIVE Updates: Air India will go back to the Tatas after a gap of 68 years as the Government of India approved its bid for the divestment sale. The Tata Group has outbid a consortium led by SpiceJet CMD Ajay Singh.

  • October 08, 2021 / 04:54 PM IST

    Air India Sale LIVE Updates: N Chandrasekaran, Chairman, Tata Sons Mumbai, said: “At the Tata group, we are delighted to be declared as the winner of the bid for AIR INDIA.

    This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline.

    It will be our endeavour to build a world-class airline which makes every Indian proud.

    On this occasion, I would like to pay tribute to J.R.D. Tata, pioneer of Indian aviation, whose memory we cherish.”