New Delhi [India], October 8 (ANI): Tata Sons has won the bid for acquiring national carrier Air India for Rs 18,000 crore, the government said on Friday. The transaction will be completed by December 2021, informed Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey. The bid was filed by Tata Sons wholly-owned subsidiary Talace Pvt Ltd.
Tata Sons were up against Spicejet promoter Ajay Singh-led consortium who had bid Rs 15,100 crore. The total debt of Air India as of August 31 stands at Rs 61,562 crore. Air India‘s reserve price was fixed after the bids were called to ensure that the bidders do not get to know about the reserve price prior to their bidding. It ensured utmost confidentiality when it comes to the reserve price.
The government will divest its 100 per cent stake in Air India, Air India Express and 50 per cent stake in ground handling company AISATS. The transaction will be completed by December 2021, informed Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey.
‘Welcome back Air India,’ tweets Ratan Tata
After Tata Sons won the bid to acquire national carrier Air India, the group’s chairman emeritus Ratan Tata on Friday tweeted a vintage photograph of the company’s former chairman JRD Tata stepping down from an Air India flight.
“The Tata Group winning the bid for Air India is great news! While admittedly it will take considerable effort to rebuild Air India. It will hopefully provide a very strong market opportunity to the Tata Group’s presence in the aviation industry,” said Ratan Tata in a press statement.
“On an emotional note, Air India under the leadership of JRD Tata had at one time gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. JRD Tata would have been overjoyed if he was in our midst today. We also need to recognize and thank the government for its recent policy of opening select industries to the private sector. Welcome Back Air India!” he added.
Tata Sons now have great responsibility to serve country’s people with excellent service, says Jyotiraditya Scindia
Union Civil Aviation Minister Jyotiraditya Scindia on Friday congratulated Tata Sons for acquiring the national carrier Air India adding that the Group now has a great responsibility to serve the people of the country with excellent service.
“I want to congratulate the winning bidders, Talace Pvt Ltd of Tata Sons. They have a great responsibility. I believe they would be able to serve the people of the country with excellent service,” Scindia told reporters here,” Scindia said after inaugurating the new terminal at Jolly Grant Airport in Dehradun. He earlier took to Twitter to say that the sale marks a new dawn for the airline.
“Air India‘s return to the Tata group marks a new dawn for the airline! My best wishes to the new management, and congratulations to DIPAM Secretary and the Civil Aviation Ministry for successfully concluding the difficult task of paving a new runway for the airline to take off!” Scindia wrote on Twitter.
Hope Tatas will bring glorious years back: Ex-Air India GM
Following the Tata Sons winning the bid for acquiring Air India, the former general manager of the national carrier G Prasada Rao on Friday said he hoped that Tatas will bring the “glorious years” of the airlines back. “Air India is not just the brand, it is a legacy and history of the country. It is just not the jewel of JRD Tata but also the nation. This homecoming of Air India is certainly a cause for celebration and the rebirth of JRD Tata‘s dream as he once envisioned it,” said Rao.
“With Tata at the helm, Air India‘s history, legacy and future come full circle and it will once again stand tall in its full might and glory. We should thank our Prime Minister Narendra Modi and the Group of Ministers lead by Amit Shah for successfully implementing the process. We hope and wish the Tatas will bring the glorious years back!” he added. (ANI)
