Published On: Fri, Oct 8th, 2021

Tata Group wins Air India Bid, ‘Welcome back, Air India,’ Says Ratan Tata

Jaipur, October 08, 2021.

After a gap of 68 years, debt-laden national carrier Air India returned to its founders Tata Sons, ending a decades-long struggle to offload the money-losing flag carrier.

Apart from 100% stake in Air India and its low-cost arm, Air India Express, the winning bid also includes a 50% stake in ground-handling company Air India SATS Airport Services Private Limited (AISATS).

An SPV of Tata Sons – the holding company of conglomerate – has emerged as successful bidder, Tuhin Kanta Pandey, secretary to the DIPAM — the government department responsible for privatisation – said.

Tata Sons beat SpiceJet promoter to bag Air India.

For Tata Group, Air India adds a third airline brand to its stable, considering the conglomerate already holds a majority interest in AirAsia India and Vistara.

The DIPAM secretary said Tatas’ bid of ₹18,000 crore comprises taking over of 15,300 crore of debt and paying the rest in cash. Both bidders had quoted above the reserve price, he said adding the transaction is planned to be closed by December.

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