On Thursday, N Chandrasekharan, Chairman of Tata Sons, met with Prime Minister Narendra Modi ahead of the official handover of Air India to the Tata Group. The photo of PM Modi and Tata chairman Ratan Tata was issued by the Prime Minister's Office.
Air India's official transfer will be the first major privatization agreement in decades. This is also the 75th anniversary of the founding of Air India, which was founded in 1932 by JRD Tata, former chairman of the Tata Group. Senior officials arrived at Air India headquarters in New Delhi as the chairman met with PM Modi. The current board of Air India will resign after the final transfer.
The Tata group has previously planned the modifications they want to make, and the first of them went into effect on Thursday on four Mumbai-bound aircraft. On AI864 (Mumbai-Delhi), AI687 (Mumbai-Delhi), AI945 (Mumbai-Abu Dhabi), and AI639 (Mumbai-Abu Dhabi), the Tata Group provided upgraded dining services (Mumbai-Bengaluru).
Tata Group won the bid to buy debt-ridden Air India, Air India Express, and a 50% stake in AISATS in October of last year. An SBI-led consortium of lenders has agreed to offer loans to the Tata Group in order to keep the airlines running smoothly. According to sources, the consortium includes all major lenders, including Punjab National Bank, Bank of Baroda, and Union Bank of India.
Air India had a total debt of 61,562 crores as of August 31. Before turning over the loss-making airline to Tata Group, almost 75% of the debt, or Rs 46,262 crore, will be transferred to a special purpose organization called AIAHL.
Since 2001, the central government has attempted to privatize Air India through various political combinations.
Tata's proposal to buy the airline for Rs. 18,000 crore was successful in October, according to the Centre.
After 69 years of government control, Air India has returned to Tata.
It was founded in 1932 as "Tata Airlines," and it was taken over by the government in 1953.
The Tata Group is in talks to choose a foreigner with experience in the global aviation industry as Air India's new CEO.
The merger of Air India Express and Air Asia India will begin next week, according to CNBC-TV18.
The Centre and the Tata Group have already signed a Letter of Intent and a Share Purchase Agreement (SPA).
Tata knocked out a Rs. 15,100-crore offer from a consortium led by SpiceJet promoter Ajay Singh in its effort to buy the historic carrier. For the sale of its 100 percent ownership in Air India, the government set a reserve price of Rs. 12,906 crore.
According to reports, Air India has 4,400 domestic and 1,800 international landing and parking slots in Indian airports, as well as 900 in other countries.
The Tata Group will also receive Air India Express and a 50% share in the ground handling subsidiary Air India SATS as part of the purchase.
Following the completion of the paperwork, Air India will become the Tatas' third airline brand.
The Tatas have taken the first step in their acquisition of Air India.
The Tata Group has announced an "improved lunch service" on four flights departing from Mumbai, marking its first move linked to Air India's operations since the takeover. AI864 (Mumbai-Delhi), AI687 (Mumbai-Delhi), AI945 (Mumbai-Abu Dhabi), and AI639 (Mumbai-Delhi) are the flights in concern (Mumbai-Bengaluru).
Also read: Tata group to take over air India
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