Last Updated on Oct 11, 2021 by Aradhana Gotur

Tata Sons won the bid for the debt-ridden airline – Air India, on 8th October 2021. They had submitted a bid of Rs. 18,000 cr for buying the carrier last month. They are re-acquiring the airline they had handed over to the government more than 50 yrs ago.

Tata Sons won a 100% stake in both Air India and Air India Express, along with a 50% stake in ground handling company Air India Singapore Airline Terminal Services (AISATS). The members of the committee that evaluated the bids were Union Finance Minister Nirmala Sitharaman, Aviation Minister Jyotiraditya Scindia, and Commerce Minister Piyush Goyal.

According to DIPAM Secretary Tuhin Kanta Pandey, Tata’s special purpose vehicle (SPV) Talace Private Limited is the winning bidder.

Mr Pandey added that Air India has a total debt of Rs. 61,562 cr as of 31 August 2021, of which Rs. 15,300 cr would be taken over by the Tata Sons. As a result, a total of Rs. 46,262 cr would be transferred to Air India Assets Holding.

Tata already operates a service carrier – Vistara in partnership with Singapore Airlines. Including this, Tatas will now control over 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at international airports.

Civil Aviation Secretary Rajiv Bansal stated that the winning bidder will not lay off any employees for at least a year.

If they are laid off after a year, they must be offered a voluntary retirement scheme (VRS). All workers would get gratuity and Provident Fund (PF) benefits, he noted.

The carrier has finally returned to its founder as Air India was originally called Tata Air Services. It was established in 1932 by JRD Tata, who was in fact India’s first licensed pilot. It was then nationalised in 1953. Tata Sons being the largest conglomerate of the nation has the capability of pouring funds for revamping Air India. This is why it was among the favourite bidders according to the committee. SpiceJet founder Ajay Singh was also one of the bidders.

Ayushi Mishra
1 Comment
Inline Feedbacks
View all comments
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.