Thursday, November 21, 2024
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Air India Returns To Tata After 68 Years: 5 Big Points

 

Tata Sons regained control of Air India – nearly 70 years after its nationalisation – with the government picking up the salt-to-software conglomerate as the winning bidder for the debt-laden state-run airline.

Here’s your 5-point cheatsheet to this big story:

  1. Tata Sons will acquire Air India, 50 per cent of Air India-Sats, and Air India Express. The government will get Rs 2,700 crore in cash from the Air India sale. The rest is the government’s debt, which Air India will take over.
  2. The transaction does not include non-core assets including land and building, valued at Rs 14,718 crore, which are to be transferred to the government’s holding company AIAHL.
  3. Air India’s total debt stands at over Rs 60,000 crore.
  4. Air India employees will be given voluntary retirement scheme or VRS in the second year and there will be retrenchment in the first year.
  5. The deal completes a full circle as Air India was founded in 1932 under the name Tata Airlines by family scion and aviation enthusiast Jehangir Ratanji Dadabhoy Tata.

 

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