One of India’s major privatisation deal reached a successful conclusion when Tata Group officially took over Air India on Thursday.
The divestment process of Air India comes after the central government handed over the management control and its shares to the Tata Group.
The strategic divestment transaction was completed after the government received a consideration of Rs 2,700 crore from Strategic Partner (M/s Talace Pvt Ltd. It is a wholly-owned subsidiary of M/s Tata Sons Pvt Ltd).
Besides, the Tata Group will also take over debt amounting to Rs 15,300 crore, the government said.
The transaction covers three entities namely Air India, Air India Express, and AI SATS. As 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.
Tata Sons Chairman N Chandrasekaran after taking over Air India said that the group will focus on bringing down operational costs of Air India.
Did you know that Tata Sons Chairman Natarajan Chandrasekaran had joined as an intern at the Tata Consultancy Group in 1987?
It will work on further improving the performance of the airline to create a world-class airline.
For the transfer of non-core assets, the government has also notified the agreement between Air India and special purpose vehicle Air India Assets Holding Ltd (AIAHL).
The divestment of Air India was long pending owing to approvals and unresolved dues of the debt-ridden airline.
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