Aviation Sector: Air India to be handed over to Tata by the end of this week

Aviation Sector: Air India to be handed over to Tata by the end of this week

By the end of this week, Air India, also known as Maharaja, will be handed over to the Tata Group. This information was provided by senior government officials on Monday. This work, however, was supposed to be finished by December 31, 2021, according to the plan.

Last year, Tata Group purchased Air India.

The government decided to sell Air India to Tales Pvt Ltd for Rs 18,000 crore on October 8, last year. It is a subsidiary of Tata Sons, the Tata Group’s holding company. Following that, on October 25, the Central Government signed a 100% share sale agreement (SPA) with the Tata Group for Air India.

The rest of the formalities for this deal, however, are expected to be completed within the next few days, according to officials. Air India Express and a 50 percent stake in the company’s ground handling unit, Air India SATS, will also be transferred to the Tata Group as part of the deal. This is the first case of a government company being privatised since 2003-04. The Tata Group’s third airline brand will now be Air India.

These three major factors contributed to the company’s handover being delayed.

The finalisation of Air India’s balance sheet took longer than expected.

There was a delay in receiving all of the necessary approvals from global regulators for the deal.

The recovery of 278 crores in arrears from government departments and ministries took time.