Tata Sons Emerges Winning Bidder For Air India At Rs 18,000 Crore
Air India Gets A New Owner
A wholly owned subsidiary of Tata Sons Pvt. Ltd. has emerged as the winning bidder for national carrier Air India.
The winning bid of Rs 18,000 crore was submitted by Tata subsidiary Talace Pvt. Ltd. A letter of intent will be issued, share-purchase agreement will be signed, said divestment secretary Tuhin Kanta Pandey.
The government wants to close the transaction by the end of December 2021.
Watch the press conference here:
51% Equity Lock-In For 1 Year
The new owner will have to maintain 51% equity for next one year, said Tuhin Kanta Pandey.
Delighted To Win Air India: N Chandrasekharan
"At the Tata Group, we are delighted to be declared as the winner of the bid for Air India. This is a historic moment, and it will be a rare privilege for our group to own and operate the country’s flag bearer airline," Tata Sons Chairman N Chandrasekharan said. "It will be our endeavour to build a world-class airline which makes every Indian proud. On this occasion, I would like to pay tribute to J.R.D. Tata, pioneer of Indian aviation, whose memory we cherish."
Ratan Tata Welcomes Air India Back
Air India Employees To Be Retained
Winning bidder will retain employees for a period of one year. If someone has to be retrenched then they will be provided voluntary retirement scheme. All concerns of employees have been heard, Aviation Secretary Rajiv Bansal said.
There are a total of 12,085 employees in Air India, of which 8,084 are permanent employees and 4,001 are contractual employees, he added.
Losses Of Air India Are Over Rs 70,000 Crore, Says Pandey
Total debt of Air India stands at Rs 61,562 crore as of August 31, DIPAM's Tuhin Kanta Pandey said.
Debt taken over by the bidder will be Rs 15,300 crore. Rs 46,262 crore remaining debt will be transferred to the SPV. Total support by the government towards the airline since FY10 has been Rs 1,10,276 crore.