Thursday, December 9, 2021
j9-desktop

TATA Sons become the winning bidder for Air India

- Advertisement -

TATA Sons have been selected as the winning bidder for the debt-laden state-run airline Air India, Bloomberg reported on Friday. A panel of ministers accepted a proposal from officials recommending the salt-to-software conglomerate ahead of an offer from Ajay Singh, promoter of India’s airline operator Spicejet Ltd, the report said.

The government will divest its entire stake in Air India. Air India comprises of three airlines — Air India, Indian Airlines and Air India Express. Besides this, the government is also offloading 50 percent of its stake in Air India SATS Airport Services.

In a way, it will be a homecoming of sorts for Air India. The airline was created in 1932 by industrialist JRD Tata. Back then, it was called Tata Airlines. Post-independence, the airline was nationalized and rebranded as Air India.

image 1

Tata Sons had submitted a bid for Air India earlier this month. The other contender for the national carrier was SpiceJet Limited owner Ajay Singh.

The government loses nearly 200 million rupees every day to run the national carrier, which has accumulated losses of over 700 billion rupees ($9.53 billion), officials have said. An effort to auction a majority stake almost three years ago drew no bids, forcing the government to ease the terms. It had also extended the deadline multiple times due to the pandemic.

While the government will look to use the revenue generated from the sale of Air India to try and reduce its growing budget deficit, the new owners of the airline will now have to deal with the massive headcount, which includes over 1,500 trained pilots and about 2,000 ground engineers.

- Advertisement -

According to media reports, Tata Sons will have to shell out millions more in upgrade costs to its 117 aircraft. At the same time, the new owners will get access to 4,400 domestic and 1,800 international landing and parking slots at domestic airports.

Also Read:

- Advertisement -
Avatar of Astitva Patle
Astitva Patle
Content writer with have a experience of more than 1 and a half year in this field. If you like my content and wanna give me opportunity then please contact at [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Related Articles

More To Consider

NordVPN WW

Stay Connected

13,642FansLike
62FollowersFollow
127FollowersFollow
Boat Lifestyle [CPS] IN

Hot Topics

bettilt-india-sports-300x600

Latest Articles

Trending

Featured

Adblocker detected! Please consider reading this notice.

We've detected that you are using AdBlock Plus or some other adblocking software which is preventing the page from fully loading.

We don't have any banner, Flash, animation, obnoxious sound, or popup ad. We do not implement these annoying types of ads!

We need money to operate the site, and almost all of it comes from our online advertising.

Please add technosports.co.in to your ad blocking whitelist or disable your adblocking software.

×