Air India likely to be handed over to Tata group by weekend

Air India is likely to be handed over to the Tata group by the end of this week, senior government officials said on January 24. After a competitive bidding process, the government on October 8 last year sold Air India to Tales Pvt Ltd – a subsidiary of the Tata group’s holding company – for Rs 18,000 crore.

After that, on 11 October, a letter of intent (LOI) was issued to the Tata group confirming that the government was willing to sell its 100 per cent stake in the airline. On October 25, the Center signed a share purchase agreement (SPA) for the deal.

Officials said on January 24 that the rest of the formalities regarding the deal are expected to be completed in the next few days and the airline will be handed over to the Tata group by the end of this week.

Read also: Tata Motors to launch exciting new mass products soon, ramp up production

As a part of the deal, the Tata Group will also be handed over 50 per cent stake in Air India Express and ground handling arm Air India SATS. Tata had on October 8 made an offer of Rs 15,100 crore by a consortium led by SpiceJet promoter Ajay Singh and the sale of its 100 per cent stake in the loss-making carrier, beating the government-set reserve price of Rs 12,906 crore.

While this would be the first privatization after 2003–04, Air India would be the third airline brand in the Tata stable. It has a majority stake in Vistara, a joint venture with AirAsia India and Singapore Airlines Ltd.

With inputs from PTI

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