Tata Group Officially takes over Air India Operations

Tata Group Officially takes over Air India Operations

• The Government of India officially handed over India’s flag carrier, Air India to Talace Private Limited, a subsidiary of Tata Group, on January 27, 2022, almost 69 years after acquiring the conglomerate.
• The total value of the deal is Rs 18,000 crore (US$2.4 billion).
• The strategic disinvestment transaction of Air India includes transfer of 100 percent stake of GoI in Air India to Tata Sons, along with management control.
• The transaction covers three entities namely, Air India, Air India Express and Air India SATS (AI SATS).
• Under the deal, Tata group will also be handed over Air India Express and 50 percent stake in ground handling arm AI SATS.

Points to Remember:

• GOI has sold its entire stake in Air India to which company?
• Air India has been acquired by Tata Sons for what deal price?
• How much stake of GOI in Air India has been handed over to Tata Sons? 100%
  
• Strategic disinvestment meaning – transfer of the ownership and control of a public sector entity by the government to some other entity, either private or public.

Some Useful information:

• Air India is India’s flag carrier and premier full-service airline headquartered at New Delh.
• Air India Express (HQ- Kochi) is a low-cost carrier owned by Air India.
• AI SATS provides a comprehensive suite of ground handling and cargo handling services.
• The mascot of Air India is the Maharajah (Emperor). The logo contains a flying swan with the wheel of Konark inside it.

Air India Airline

• The Air India airline was founded by J. R. D. Tata in 1932 as Tata Air Services and later renamed to Tata Airlines.
• After World War II, on 29 July 1946, Tata Airlines became a public limited company under the name Air India
• In 1953, the Government of India passed the Air Corporations Act and purchased a majority stake in the carrier
• In 2007, Air India and Indian Airlines were merged under Air India Limited
• On 28 June 2017, the Government of India approved the privatisation of Air India.
• Finally, on 8 October 2021, Air India was sold to Talace Private Limited, a subsidiary (special purpose vehicle (SPV)) of the Tata Group’s holding company Tata Sons.
  
• This will be the third airline brand owned by Tata Group.
• It also holds a majority interest in AirAsia India, a joint venture with AirAsia Investment Limited (Malaysia) and Vistara, a joint venture with Singapore Airlines Ltd.