Air India’s handover to Tatas today
Air India will get a new Board on Thursday as the airline sees a change of guard. The government of India will formally transfer the reins of the airline to Tata Sons, which won the bid for the airline as part of a privatisation process.
“Air India will hold its final Board meeting today. The official nominees of the Board will resign and the new Board will take over,” said a government official.
Earlier this week, the airline finalised its closing balance sheet and sent it to Tatas for a review.
With the transfer on Thursday, Tatas will be in control of three airlines in the country and a total of nearly 27% market share in the aviation sector. The other airlines are Vistara in which Tatas have a 51% stake and Air Asia where they have a 84% stake.
Last year in October, Tata Sons subsidiary, Talace Pvt. Ltd. emerged as the winning bidder for the debt-laden national carrier after quoting an enterprise value of ₹18,000 crore as part of a disinvestment process undertaken by the government.
The Tatas will own 100% stake in Air India, as also 100% in its international low-cost arm Air India Express and 50% in the ground handling joint venture, Air India SATS. Apart from 141 planes and slots, and access to a network of 173 destinations including 55 international ones, Tatas will also have the ownership of iconic brands like Air India, Indian Airlines & the Maharajah. (Source: The Hindu)