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Tata takes over Air India Highlights | "The formalities have been completed. The Air India disinvestment process is closed. The shares have been transferred to Talace Pvt Ltd, which is the new owner of Air India," said Tuhin Kant Pandey, Secretary, Department of Investment & Public Asset Management (DIPAM).
The government had in October last year, inked the share purchase agreement with the Tata Group for the sale of national carrier Air India for Rs 18,000 crore.
The Tata Group is expected to take full control of the airline, it founded in 1932, on Thursday. The cash component of the deal would come once the handover process is completed.
The Tata Group would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline’s debt. The deal also includes sale of Air India Express and ground handling arm AISATS.
The transaction was to be completed by December 2021, but the deadline was later extended till January 2022, owing to longer-than-expected time taken to complete procedural work.
This will mark the return of Air India to the Tata fold after 67 years. The Tata Group had founded Air India as Tata Airlines in October 1932. The government nationalised the airline in 1953.
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Tata Sons ChairmanNChandrasekaran after taking over Air India from the government said that he was delighted that Air India’s takeover process is complete.He added the group will focus on bringing down operational costs of Air India and improving the performance of the airline in their bidtowardscreating a world-class airline.Read full report.
Tata Sons Chairman N Chandrasekaran meets Finance Minister Nirmala Sitharaman shortly after the take over of Air India was formally completed.
I like many others, have enjoyed reflecting on stories from the airline's brilliant past. My first
flight was with Air India in December 1986, and Iwill never forget how special it felt to be
onboard, or the exhilaration as we soared into the sky.
Such memories are wonderful, but now is the time to look ahead. Today is the beginning of a
new chapter. The entire nation’s eyes are on us, waiting to see what we will achieve together.
To build the airline our country needs, we need to look to the future.
I write this letter on behalf of the Tata Group, to welcome you to our family. Our Group has its
own storied past. Ihave learned that to preserve what is best about the past, requires
constant change. It is by evolving, adapting and embracing the future that we best honour a
glorious history.
I am convinced that the golden age of Air India lies ahead. Our journey towards it starts now.
Welcome. And welcome back.
Warmest regards,
Chandra
"I am convinced that the golden age of Air India lies ahead. Our journey towards it starts now. Welcome. And welcome back," Tata Sons Chairman N Chandrasekaran said in a letter to the Air India employees.
A plan for the monetisation of Air India's non-core assets is being prepared, DIPAM Secretary TK Pandey said. "At this moment,while settling such a complex transaction, can’t give a timeline for monetisation of non core assets," he added.
Four existing directors of Air India will continue to remain part of the airline's rejigged board, following the takeover by Tatas, DIPAM Secretary said.
DIPAM Secretary TK Pandey told Moneycontrol that Dewas was "one of the legal challenges for the Air India deal".
I feel very relieved today.It has been a roller coaster ride with legal challenges," Tuhin Kant Pandey, Secretary, Department of Investment & Public Asset Management (DIPAM), saidin an exclusive conversation with Moneycontrol.
The Tata Group takes over management and control of the airline, starting today.
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.
On this occasion, Mr. N. Chandrasekaran, Chairman, Tata Sons Pvt. Ltd. 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, to our Group, and look forward to working together.”
Mr. Ratan N. Tata joined Mr. N Chandrasekaran in expressing his thankful recognition to the Government of India and its various departments for the successful completion of this important transaction.
The Tata Group would like to acknowledge Prime Minister Shri Narendra Modi's commitment to reforms and faith in India's entrepreneurship spirit, which made this historic transition possible. Our Prime Minister has in action demonstrated what his commitment to 'Minimum Government, Maximum Governance' means.
We philosophically agree with the Prime Minister's vision for the aviation sector, of making it affordable and ensuring it contributes to boosting 'Ease of Living' for citizens.
