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Tata Group Completes Air India Acquisition

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Tata Group is back at the helm of Air India, the airline that was founded by the founder of Tata Group, Jehangir Ratanji Dadabhoy Tata back in 1932. On Thursday, the conglomerate officially took over the company from the Indian Government. The deal cost the company ? 18,000 crores.

Tuhin Kanta Pandey, Department of Investment and Public Asset Management (DIPAM) Secretary said in a press release, "The strategic disinvestment transaction of Air India successfully concluded today with transfer of 100 percent shares of Air India to M/s Talace Pvt Ltd along with management control. A new Board, led by the Strategic Partner, takes charge of Air India."

The deal, originally completed back in October 2021, was officially announced on Thursday. The multi-business group was in the dog race with a consortium by SpiceJet promoter Ajay Singh. Tata group already operates two more airlines namely AirAsia India and Vistara.

"We are totally delighted to have Air India back at the Tata group and are committed to making this a world-class airline," said, Tata Sons Chairman N Chandrasekaran. After the acquisition, now the company has a total of 141 planes, 99 of which are owned, and the rest are leased. Air India has access to 4,400 domestic and 1,800 international runways and parking spots across the country along with another 900 abroad. However, Tata will not get to keep the assets of the flight company like the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi.

The airline has been suffering from loss recently with almost $20 crore in losses every day so the handover is expected to revamp the system in the company and provide better results in the upcoming days.

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