Tata Group Will Take Control Of Air India On January 1st? Find Out How and Why?
Tata Group is expected to take control of Air India by the end of 2020 by participating in the bidding process of the government’s divestment plans for the airline.
Read on to find out more…
Air India’s Sale Bid Will Close On August 31!
The deadline for the final submission of the bids for Air India is August 31 and as of now, Tata Group seems to be the only interested party.
If Tata’s bid is deemed acceptable after the deadline, the 90 day handover period shall begin and end between November 30 to December 31, 2020.
According to reports, the Tata group has already begun due diligence and is likely to put in a formal bid soon, close to the deadline.
Air India Express, a low-cost subsidiary of the airline and the Air India’s real estate assets; a part of the airline will also be on sale.
Tata Group, who has been in the aviation sector for a long time, has expressed a keen interest in taking over Air India for quite some time now.
As per reports, Tata sons holds a 51% stake in AirAsia India. Tata Group also has a joint venture in the airline business by the name Vistara.
It is not yet clear if Tata Group will consolidate its existing ventures with its new acquisition, although there are many speculations in the aviation industry of this happening.
Will Air India after almost 74 years return to its origins?
Let’s find out Air India’s rollercoaster-like journey in the aviation industry till now…
Air India’s Topsy-Turvy Journey!
India’s national carrier was actually founded by J. R. D. Tata of Tata Sons, an Indian aviator, and business tycoon, and operated as Tata Airlines till 1946.
After World War II, regular commercial service was restored in India and the airline became a public limited company and was renamed to Air India.
After facing humongous losses in 2018, the national airline was put on sale which failed and the government abandoned the sale altogether.
In late-2019, the Government announced the re-attempt of the sale of 100% stakes of Air India to private organizations by March 2020.
The COVID-19 pandemic and the resultant air travel ban has further crippled Air India‘s business. Recently, its employees were laid off and some were sent off on a Leave Without Pay (LWP) scheme.
However, the COVID-19 pandemic’s disruption of economic activities caused the deadline to be extended to August 31, 2020, which the government has assured won’t be extended further.