32.1 C
Delhi

TATA Sons become the winning bidder for Air India

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 become the winning bidder for Air India

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.

- Advertisement -TechnoSports-Ad

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.

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.

- Advertisement -TechnoSports-Ad

Also Read:

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.

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]
TechnoSports-Ad

Popular

TechnoSports-Ad

Related Stories

More from author

iQOO 9 series could come in India in Q1 2021 with Snapdragon 8 Gen 1

iQOO the Vivo’s sub-brand has unveiled the iQOO 8 and iQOO 8 Pro smartphones in China in the month of August this year. Both...

Apple Music 2021 Top Charts are here: Check all the highlights

Apple Music Top 100 charts 2021 list is in front of us. BTS's Dynamite band from South Korea is the most-streamed song in 2021...

Samsung dominates the Global Foldable smartphone market with 93% Share

The global foldable phone market seems to have reached new heights in Q3 2021, at the same time when Samsung unveiled the Galaxy Z Fold...

Xiaomi 12 will be the first smartphone powered by Snapdragon 8 Gen 1

Xiaomi is working on its new flagship device and it can be anticipated to launch in December during a launch event. The Xiaomi 12 and Xiaomi 12X flagship handsets will be launched in China first and also it'll make its debut in other requests. In a recent tweet,...