Air India, India’s national airline, has been formally handed over to the Tata Group. Tata bought the debt-ridden airline in October last year. The Indian government had to incur a loss of 62.8 million a day to operate the national carrier.
On Thursday (January 26), Indian Prime Minister Narendra Modi met Tata Sons chief N. Chandrasekhar. The airline has since been handed over to the Tata Group. The transfer appears to have been a successful privatization deal in India over the past few decades
On the same day, senior officials visited the Air India head office in New Delhi. When the board members of Air India resigned, the responsibility of the company was officially handed over to the Tata group. Now Tata Group will appoint new board members.
However, it is not yet clear whether the airline will operate under the Tata banner.
Again, this decision can be called the return of Air India to its home. Because the airline started its journey in 1932 holding the hand of former Tata Chairman JRD Tata.
Later in 1953 the responsibility of the airline passed to the Indian government. At present, Air India has a debt of USD 900 crore.
Narendra Modi had long wanted to sell all the shares of Air India. This time he has succeeded. It is also the largest investment withdrawal from a state-owned property since he came to power in 2014.
Earlier, the Indian government failed to withdraw investment from several loss-making companies. Air India’s assets include landing slots at London’s Heathrow Airport, a fleet of about 130 aircraft and several thousand trained pilots and crew.
Tata Group has two more airlines in India: Vistara in partnership with Singapore Airlines and AirAsia India in partnership with AirAsiaBHD in Malaysia.