Air India once again becomes Tata's, owns back for Rs 18,000 crtext_fields
New Delhi: Tata Sons, who founded Air India in 1932, has regained the ailing national carrier at Rs 18,000 crore more than half a century after it had handed over the ownership to the Government of India.
The winning bid of Rs 18,000 crore will also give Tata Sons 100 per cent stake in Air India and Air India Express apart from a 50 per cent stake in Air India SATS Airport Services Private Limited (AISATS), a ground-handling company of the carrier, according to a report published in the NDTV.
Reports suggest that over the bids placed by Tata Sons and SpiceJet chairman Ajay Singh earlier this month, Tata emerged as the biggest bidder. In December last year, the Union government had invited bids to sell the bankrupt Air India on which four placed their bids, but only Tatas and Ajay Singh (in his private capacity) could reach the final stage.
It was in the second attempt by the Modi government that the bid to sell Air India, which made accumulated losses of over Rs 70,000 crore, met with success. The airline created a loss of Rs 20 crore every day for the government.
In March 2018, when the government had announced its expression of interest to sell a 76 per cent stake of the carrier, there were no takers due to the hefty accumulated debt. As part of the bidding agreement, the winning bidder will have to retain all the employees for a minimum period of one year, thereafter the employees can be retrenched under a voluntary retirement scheme.
Besides, all the employees will also be eligible to get Gratuity and Provident Fund and other benefits.
Air India began life as Tata Air Services in 1932 when it was founded by JRD Tata. The company was nationalised by the government in 1953. JRD Tata continued to be its chairman till 1977. Air India became the first Asian airline to induct jet aircraft and started flying to New York in 1960.