The Tata Group on Thursday officially took over the Air India, AI express, and AI SATS as the government transferred 100% shares to Tata’s wholly-owned subsidiary Talace Pvt Ltd. The govt also transferred the management control of the company to the new owners. With this, the existing board of Air India resigned, and a new board was constituted led by the Tatas, which took the control of the airline.

This completed the process of the government selling the debt-ridden airline to the Tata group company. It may be noted that Air India was founded by legendary industrialist JRD Tata, and from today, the airline went back to the control of its original owner.

Tata Sons Chairman N Chandrasekaran said that Tata Group was delighted to have Air India back and was committed to making it a world-class airline. “We are excited to have Air India back in the Tata Group and are committed to making this a world-class airline. I warmly welcome all the employees of Air India to our Group, and look forward to working together", said N Chandrasekaran.

N Chandrasekaran also met PM Modi this afternoon before finalizing the takeover over of the Maharaja that was nationalized 69 years ago. “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,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey stated.

It is pertinent to note that the transaction covers three entities- Air India, AI express, and AI SATS. According to the official statement issued by Tata Group, Air India is India’s flag carrier, Air India Express is a low-cost carrier and Air SATS provides a comprehensive suite of ground handling and cargo handling services.

In a press statement issued by the company, Tata Group said that it would like to acknowledge Prime Minister Narendra Modi’s commitment to reforms and faith in India’s entrepreneurship spirit, which made this historic transaction possible. “Our Prime Minister has in action demonstrated what his commitment to ‘Minimum Government, Maximum Governance’ means,” added the company.

N Chandrasekaran also issued a letter to the employees of Air India, welcoming them to the Tata Group. “To preserve what is best about the past requires constant change. It is by evolving, adapting, and embracing the future that we best honor a glorious history,” he wrote. He further added, “I am convinced that the golden age of Air India lies ahead. Our journey towards it starts now.”

In October last year, the government had announced that Talace Pvt Ltd had won the bid to acquire Air India for Rs 18,000 crore. Then a Share Purchase Agreement was signed after a Letter of Intent (LoI) was issued to the Tata group confirming the government’s willingness to sell its 100% stake in the airline.

With this deal, Air India has become the third airline brand in the Tata Group’s stable as it already holds majority interests in AirAsia India, a joint venture with AirAsia, and Vistara, a joint venture with Singapore Airlines Ltd. At present, Air India controls over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots abroad.

Tatas had set up Tata Airlines in 1932, which was later in the year 1946 renamed as Air India. The government had taken control of the airline in 1953, but JRD Tata continued to be its chairman till 1977.

References:

opindia.com - OpIndia Staff