More than half a century after India’s biggest conglomerate surrendered control to the state, ending the government’s hold over an airline – Tata Sons Pvt Ltd is all set to take over Air India Ltd, again.
The central government has officially announced that Tata sons acquires 100 percent shareholding of Air India. This comes a week after the government had denied awarding Air India Bid to Tata Group.
Tata had presented a winning bid of 18,000 crores and 68 years after winning the bid, Tata gets Air India.
History of Air India
Established by India’s first licensed pilot, legendary industrialist and philanthropist J.R.D. Tata, the airline flew mail in the 1930s between Karachi, British-rued India, and Bombay – now known as Mumbai.
Air India became popular with those who could afford to travel through the skies when it went public in the 1940s. However, it lost its edge in both domestic and international markets in the mid-2000s with the advent of private affordable carriers.
Air India hasn’t turned a profit since its 2007 merger with Indian Airlines and is now saddled with a debt of around 600 billion rupees. However, it does have some attractive assets, including prized landing and parking slots at London’s Heathrow airport, which may help Vistara lure business travelers with direct flights to Europe.
Returning home after 68 years, Tata Sons will finally take over the reins of Air India. The government decided to sell Air India four years ago. Four years later, Air India has been bought by Tata Sons and returned home. This information was given by the Secretary of the Ministry of Civil Aviation at a press conference. It is worth noting that Air India had a debt of Rs 38,366 crore.