The government on Thursday officially handed over Air India to the Tata Group. The Tata group takes over management and control of the airline, starting today.
The transaction covers three entities – Air India, Air India Express, and AI SATS. Air India is India’s flag carrier and premier full-service airline. Air India Express is a low-cost carrier. AI SATS provides a comprehensive suite of ground handling and cargo handling services.
“All formalities have been completed. Air India disinvestment transaction is now closed. The consideration amount of ₹2,700 crore has been received by the government. The shares have been transferred to Talace. Consideration amount has been received and so the new owner is Talace. The debt of ₹15,300 crore has been accepted [by the new owners]. The new Board is currently conducting its meeting,” Secretary, DIPAM, Tuhin K Pandey, told reporters.
On this occasion, N Chandrasekaran, Chairman, Tata Sons, said, “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, Air India Express, and AI SATS to our Group, and look forward to working together. We are thankful to the Government of India and its various departments for the successful completion of this important transaction.”
The formal handover today follows the announcement which had earlier been made in October 2021, of the Tata group having been selected by the Government as the new owner of the airline.