Tata Group to Take Over Air India Today
Today, Air India is expected to be officially turned over to the Tata group, beginning the transfer of ownership process.
As per insiders, N Chandrasekaran, Tata Sons chairman, is expected to attend the event, commemorating the Tata Group’s acquisition of a government-owned flag carrier of India.
The transfer will take place on Thursday, as well as the method of transferring the airline would begin as per sources. The complete handover could take some time.
The government has sold Air India to the Tata Group’s subsidiary holding company, Talace Private Limited. The sale was made for Rs 18,000 crore on October 8 of last year; post a tough bid process – approximately Rs 2,700 crore would be paid to the Indian government. The remainder will be Air India loans the new organization will take.
Following the acquisition, the management change will appoint an interim management team to operate the airline, including TCS, AirAsia India, and Tata Steel executives. Beginning today, the Tata Group will take over administration as well as airline control.
Air India, AI SATS, and Air India Express are all included in the deal. Air India is the national carrier of India and the country’s leading full-service airline. Air India Express is a low-cost airline based in India. AI SATS offers a full range of ground handling and cargo handling services.
Post the government passes the airline to the company and AirAsia India as well as AI Express merge, the Tata group is expected to operate 3 airlines: Air India, Air India Express, and Vistara.
The Tata Group plus SIA has a 51:49 joint project called Vistara. Because SIA is not online for the AI business, the group intends to keep Vistara as a distinct entity for the moment. On the other hand, SIA had consented to be a member of the acquisition plan for Air India, however, it did not like to proceed after Covid’s company suffered and funding dried up.
As part of the turnaround strategy, the Tata group is developing a 100-day strategy for Air India to enhance the airline’s service and functional standards, including on-time efficiency, passenger grievances, and call centre concerns.
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