Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Xiaomi
Adani Group
Life Insurance Corporation of India
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Tata Sons acquires Air India for Rs. 18,000 crore
Business

Tata Sons acquires Air India for Rs. 18,000 crore

Tata Sons acquires Air India for Rs. 18,000 crore
Written by Sagar
Oct 08, 2021, 04:40 pm 2 min read
Tata Sons acquires Air India for Rs. 18,000 crore
Tata Group has won the bid for Air India.

Tata Sons has won the bid to acquire national carrier Air India after placing a winning bid of Rs. 18,000 crore, reports said. This marks the privatization of the debt-laden airline after decades of government control. Last week, the government had struck down a Bloomberg report that said the Tatas had won the bid, saying that nothing had been finalized. Here are more details.

Details
Tata and SpiceJet chairman had placed bids

Tata Group and SpiceJet chairman Ajay Singh had bid for the state-run airline a few weeks ago. Tata winning the bid marks the return of Air India to that company after 67 years. The Tata Group had founded the airline in October 1932, naming it Tata Airlines. The Indian government had nationalized it in 1953.

Twitter Post
'Welcome back, Air India'

Welcome back, Air India 🛬🏠 pic.twitter.com/euIREDIzkV

— Ratan N. Tata (@RNTata2000) October 8, 2021
Losses
Air India has suffered losses of over Rs. 70,000 crore

Air India has been affected by losses since its merger with domestic operator Indian Airlines in 2007. In fact, the government loses nearly Rs. 20 crore every day to run the airline and the total losses have reached more than Rs. 70,000 crore, officials say. It has been surviving through debt for the past several years.

Future
What all is included in the bid?

With this bid, Tata will get control of 4,400 domestic and 1,800 international landing and parking slots at airports across India as well as 900 slots at foreign airports. Besides a 100% stake in Air India and its low-cost arm, Air India Express, the winning bid also includes a 50% stake in the ground-handling company Air India SATS Airport Services Private Limited.

Debt
Tata to take over Rs. 15,300 crore debt

As on August 31, 2021, Air India has a total debt of Rs. 61,562 crore. Of that amount, Rs. 15,300 crore will be handed over to the winning bidder. The remaining Rs. 46,262 crore will be transferred to Air India Assets Holding Limited (AIAHL). AIAHL is a special purpose vehicle (SPV) formed by the government.

Other details
No AI employee will be retrenched for a year

The winning bidder will not retrench any employee for a minimum period of one year and if retrenched after a year, they will have to be offered VRS or voluntary retirement scheme. Gratuity and Provident Fund (PF) benefits will also be provided to all employees, a top official said. Air India adds a third brand to Tata's airline fleet, after Vistara and AirAsia India.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Sagar
Sagar
Twitter
Sagar covers national news for NewsBytes. He has previously worked as an editorial intern at NDTV. Over the course of his near three-year career, Sagar has gained experience in news writing, copy editing, and video production. He holds a Bachelor's degree in Journalism and Mass Communication from the University of Delhi.
Latest
Related
Latest
Classic 'Anand' is getting remade, not everyone is happy though
Classic 'Anand' is getting remade, not everyone is happy though Entertainment
What prompted ASI to shut Aurangzeb's tomb in Aurangabad?
What prompted ASI to shut Aurangzeb's tomb in Aurangabad? India
Tesla releases full self-driving software update for cars: Check features
Tesla releases full self-driving software update for cars: Check features Technology
5 homemade foot scrubs
5 homemade foot scrubs Lifestyle
Jofra Archer ruled out of upcoming English season: Details here
Jofra Archer ruled out of upcoming English season: Details here Sports
Related
Ilker Ayci, former Turkish Airlines chief, is Air India CEO
Ilker Ayci, former Turkish Airlines chief, is Air India CEO Business
'Totally delighted,' says Tata Sons chief after Air India takeover
'Totally delighted,' says Tata Sons chief after Air India takeover Business
Tata Sons chairman to meet PM before Air India handover
Tata Sons chairman to meet PM before Air India handover Business
'Incorrect': Government denies report on Tata winning Air India bid
'Incorrect': Government denies report on Tata winning Air India bid Business
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022