New Delhi: The government said Wednesday that it is making every effort to hand over Air India’s business to Tatason’s by the end of this year. “We are making every effort to take over Air India’s business by the end of December,” the Ministry of Civil Aviation’s Secretary of Civil Aviation, Radib Bansal, told news agency ANI.
The Tata Group has been selected as the winning bidder for India’s flag carrier, ending decades of attempts to privatize airlines that have lost money and are in debt.
Originally launched in 1932 under the brand of the same name (Tata Air Services), Tata Sons bid for a corporate value of Rs 18,000.
According to the contract, Tatus will hold Air India’s debt of Rs 15,300 and will pay the government Rs 2,700 in cash.
As of August 31, the struggling carrier has a debt of Rs 6.156 trillion, and the debt that Tatason’s did not absorb will be taken over by the government.
The contract did not include Air India’s non-core assets such as land and buildings. Tatason’s must retain all airline employees for at least one year.
Currently, Air India has 117 wide-body and narrow-body aircraft, and Air India Express has 24 narrow-body aircraft.
Despite unstable finances, Air India manages more than 4,400 domestic and more than 1,800 international landing and parking slots at domestic airports, and 900 slots abroad.
The Tata Group also operates Vistara in partnership with Singapore Airlines and operates AirAsia India in partnership with Malaysia’s AirAsia.