Tata group has announced the completion of the transaction for the purchase of Air India from the Government of India.
This means the Tata group now takes over management and control of the airline, starting today, Thursday, January 27, 2022, the Indian multinational conglomerate disclosed in a statement.
The transaction covers three entities – Air India, Air India Express, and AI SATS. Air India is India’s flag carrier and premier full-service airline. Air India Express is a low-cost carrier airline that focusses on short-haul international operations especially in the Middle East market whilst AI SATS provides a comprehensive suite of ground handling and cargo handling services.
Mr N Chandrasekaran, Chairman of Tata Sons, stated that the company is excited to have Air India back in the Tata group, and is committed to making this a world-class airline.
“I warmly welcome all the employees of Air India, Air India Express, and AI SATS to our Group, and look forward to working together. We are thankful to the Government of India and its various departments for the successful completion of this important transaction”.
Mr N Chandrasekaran
Tata won competitive bid last year
The formal handover today followed the announcement in October last year that Tata group was selected by the government as the new owner of the airline. Tata won the competitive bid for acquiring the entire company including wholly-owned subsidiary Air India Express and 50% stake in Air India SATS.
The Tata group’s holding company, Tata Sons, through its wholly-owned subsidiary Talace Pvt Ltd, submitted a winning bid of Rs18,000 Crore as the Enterprise Value of Air India.
Consequent to the acquisition, Tata owns a 100% stake in Air India and 100% in its subsidiary Air India Express as well as 50% in the joint venture Air India SATS. The total permanent and contractual employee strength of Air India & AIXL is 13,500.
Commenting after winning the bid last October, N. Chandrasekaran, Chairman of Tata Sons Pvt Ltd said it was a “historic moment” and a “rare privilege” for the company to own and operate the country’s flag bearer airline.
Air India provides a unique and attractive international footprint as more than 2/3rd of its consolidated revenues come from the international market. It is the number one player from India in the international market with a strong footprint across geographies like North America, Europe, and the Middle East with attractive slots & bilateral rights. The Air India frequent flyer program has more than 3 million members.
The Tata Group
Tata group, a global enterprise with headquarters in India, comprises 30 companies across ten verticals and operates in more than 100 countries across six continents.
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation, and art and culture.
In 2020-21, the revenue of Tata companies, taken together, was $103 billion (INR 7.7 trillion). These companies collectively employ over 800,000 people. Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors.
There are 29 publicly-listed Tata enterprises with a combined market capitalization of $242 billion (INR 17.8 trillion) as at March 31, 2021. Some of the companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Tata Advanced Systems, Indian Hotels and Tata Communications.
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