After 68 Years Maharaja Returns To The Tatas

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After 68 Years Maharaja Returns To The Tatas
15 Feb 2023
8 min read

News Synopsis

Latest Updated on 15 February 2023

On Thursday, Air India made its official switch back to its founder Tata Group after 69 years. A Tata Sons spokesman stated following a meeting with Prime Minister Narendra Modi that all formalities have been completed and the Air India disinvestment process is now closed. To Talace Pvt Ltd, the new owner of Air India, who has received the shares.

"We are delighted that the process is thorough and delighted to welcome Air India back to the Tata Group. We look forward to working with everyone to create a premier airline "N Chandrasekaran, the chairman of Tata Sons, made the statement after accepting control of Air India.

Tuhin Kanta Pandey, the secretary of the department in charge of investments and public asset management, told the media that Talace Private Limited, a division of the holding company for the Tata Group, had won the bid to purchase Air India.

The government sold Air India to Talace Private Limited, a division of the holding company for the Tata Group, on October 8 of last year after completing a competitive bidding process for Rs 18,000 crore. The Tata Group founded Air India in 1932. However, in 1953, the airline was national by Jawaharlal Nehru, the country's first prime minister, when it gained its independence.

The official mascot of Air India, which operates international flights in addition to domestic ones, is Maharaja. In 2020, "Air India runs around 101 destinations, including 57 domestic operations, including 33 countries on four continents across the world," according to the data that is currently accessible.

Aviation experts claim that Air India's strength is the fact that it has a significant number of the latest Airbus and Boeing Aircraft in its fleet. Air India flies 172 large and narrow-body aircraft with Air India Express Globally, including domestic flights, and codeshares with Star Alliance.

Last Updated on 09 October 2021

The Air India acquisition completes a circle, as the airline was formed in 1932 by family scion Jehangir Ratanji Dadabhoy Tata as Tata Airlines. The government chose the salt-to-software conglomerate Tata Sons as the winning bidder for the debt-ridden state-run airline, 68 years after it was nationalized. It's no surprise that the Tatas spent Rs 18,000 crore to regain Air India, given their love for aviation tradition. This is a group that was willing to invest Rs 2 lakh to establish Tata Aviation Service, the forerunner of Tata Airlines and Air India, in 1932.

After India's economy liberalized in the early 1990s, Tatas formed a joint venture with Singapore Airlines, which initially failed, but the two companies reunited in 2012 to create Vistara, a local airline. When the government put out a bid for Air India's disinvestment, the Tata Group was one of the four bidders. The offer was won by Tatas. The Tatas will receive a 100% interest in Air India and its low-cost subsidiary, Air India Express, as well as a 50% investment in ground-handling business Air India SATS Airport Services Private Limited, as part of the winning offer. This also transfers a portion of Air India's debt to Tatas. According to the government, Air India has a total debt of Rs 61,562 crore as of August 31. The loan is taken up by Tata for Rs 15,300 crore. The remainder would be moved to a special-purpose vehicle.

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