After the disinvestment process was somewhat delayed, Air India would be turned back to the original Tata group on January 27.
The Tata group will receive the closing balance sheet as of January 20 today for an evaluation, with any necessary adjustments due by Wednesday. Air India's Director Finance, Vinod Hejmadi, wrote an internal email to employees urging them to give it their all in the final three to four days before the company is sold.
He said in an email, “The next three days will be hectic for our department and I request all of you to give your best in these last three to four days before we get divested. We may have to work late in the night to complete the task given to us,” he added in the mail.
“I seek the cooperation of one and all.”
After a competitive bidding procedure, the government confirmed the sale of Air India to Talace Private Limited, a subsidiary of the Tata group's holding company, for Rs 18,000 crore on October 8, 2021. On October 11, the government sent a letter of intent (LoI) to the Tata Group, reaffirming the government's desire to sell its whole stake in the airline. On October 25, the public authority consented to the offer buy arrangement (SPA) for the arrangement. Senior authorities affirmed today that the excess conventions with respect to this arrangement are relied upon to be finished in the following not many days and the carrier ought to be given to the Tata bunch before the current week's over.
As part of the purchase, the Tata group will receive Air India Express and a 50% share in the ground handling subsidiary Air India SATS.
The transfer of Air India from the government to the Tata group is unlikely to have a significant impact on operations, at least in the short term. While there may be some minor adjustments, no substantial modifications are expected for at least a few months. Changes in personnel or flying operations are examples of this.
Customers are unlikely to be impacted by the shift because flying operations will remain the same. The only changes that passengers are likely to notice are branding on the inside and outside of the airplane.
However, Tatas' decision to operate the airline may change in the long run. According to previous reports, the Tata company is trying to consolidate all of its aviation operations under a single unit.
As part of the acquisition, the Tata group would receive full ownership of Air India and Air India Express; it already has a majority position in AirAsia and Vistara.
There's a potential the company will consider integrating all of its airline divisions, allowing it to save money and generate more revenue. After the handover, the new management of the airline should be able to provide more clarity on the subject.
Top politicians and analysts hailed the confirmation of Air India's sale to Tata as a watershed moment. Many experts feel that the sale will allow the loss-making airline to change its course.
Air India’s new CEO: Vikram Dev Dutt- click to know more
After a competitive bidding process, the Tata group purchased Air India from the government on October 8, 2021, for Rs 18,000 crore. On October 11, the government sent a letter of intent (LoI) to the Tata Group, reaffirming the government's desire to sell its whole stake in the airline.
On October 25, the government approved the deal's share purchase agreement (SPA). While the process has taken longer than expected, senior authorities have finally announced that the airline would be handed over to the Tata group by the end of the week.
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