Air India is likely to be handed over to the Tata group on January 27
Air India will be handed over to the founder Tata group on January 27. The airline’s balance sheet was finalized and shared with the Mumbai-based conglomerate on Monday. Any changes in the balance sheet have to be made by Wednesday.
On October 11 2021, the central government had issued the Letter of Intent (LoI) to the Tata Group. Earlier, the expected timeline for transfer was set for December-end. However, it got delayed due to various reasons. Reportedly, this was extended to January-end on account of various pending approvals and finalization of balance sheets. The closing date of the balance sheet was set at January 20. The final balance sheet was prepared with approvals from the various regulators, lenders and lessors of the airline
In October, the government had announced that the Tata Group placed the winning bid for a 100 percent stake in Air India at Rs 18,000 crore. Reportedly, out of Rs 18,000 crore, Rs 15,300 crore was the debt component, and Rs 2,700 crore was the cash component to be paid to the government.
Vinod Hejmadi, director of finance, Air India, said in an email to employees, “The disinvestment of Air India is now decided to be on January 27.”
Tata Group founded the airline as Tata Airlines in 1932 before it was nationalized in 1953. Talace Pvt Ltd, a unit of Tata Sons, acquired Air India to return the control of the financially troubled airline to the group. Talace Pvt Ltd will get 100% equity shares of Air India, Air India Express, and the government’s 50% stake in ground-handling company AISATS. After a gap of 69 years, Air India is set to become a Tata-owned carrier again. Air India will be the third airline brand in the Tata group. The company holds a majority stake in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.