Business / Tata Sons wins bid for Air India at ₹18,000 crore

Zoom News : Oct 08, 2021, 04:49 PM
New Delhi: Tata Sons has emerged as the winner in the Air India bidding and will be taking over the debt-laden airline. The government has confirmed the development on Friday as a few days ago the same was reported before the department actually put a seal on the process. With this, the airline will go back to the Tatas who have a long history with the national carrier. JRD Tata founded the airline in 1932 and it was at that time called Tata Airlines.

Tata Sons bid ₹180 billion for the government's 100% stake in Air India, a finance ministry official told reporters, Reuters reported. 

Tata Sons was the frontrunner as they bid the highest but the political nod on the decision was awaited. Reports said the Tatas are also willing to acquire up to 15 per cent of Air India's debt.

The government has been trying to sell Air India for quite some time now but the process witnessed several hiccups, including that of the pandemic. To keep Air India flying, the government loses ₹200 million every day and the accumulated loss is now over ₹700 billion, officials have said.

In this bidding, the one which has been won by the Tata Sons, the government relinquished its stake and now 100 per cent of Air India's stake goes to the Tatas. The Tatas will now control Air India's 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas, including London's Heathrow Airport.

Apart from 100% stake in Air India, the Tatas will get 50% of AISATS, which provides cargo and ground handling services at major Indian airports.