Tata Group Will Run & Operate All Air India Flights From This Date: Everything You Need To Know
After sixty-eight years, the ‘Maharaja’ was nationalized, now the countdown for Air India founder Tata Group’s re-acquiring it has begun.
Tata Group’s Re-acquiring AI
The business must assume ownership and begin operating Air India, AI Express, and AI-SATS, in which the new owners possess a 50% part, by January 23 of next year, which is the “long stop date.”, as per the share purchase deal inked with the government last month.
Although, comments from the Tatas were sought on preparations for this transfer of ownership.
Still awaited till the time of filing the report, but, so far they have not given any thoughts on their plans for Air India.
What Will Happen Next?
There is no information on the scale of operations of the airline so far.
It’s not sure yet that it will be a mega airline or a low-cost and a full-service carrier, the management structure, and fleet and cabin upgrade plans.
But, the long stop date of January 23, 2022, is the outer limit by when Tata’s wholly-owned subsidiary has to take over AI as this was agreed upon by both parties, said the people concerned with the deal.
Further adding that “If there is a delay in fulfilling conditions precedent (CP) requirements or disagreement on the closing balance sheet, the long stop date can be extended with mutual consent of both the parties. But that is an option unlikely to be exercised as January 23 was the date agreed upon by both,”.
No Delay In Air India Deal
Interestingly, the top government officials don’t see AI takeover being delayed.
However, they are trying to ensure that the transfer of control takes place by the end of 2021.
Prior to this, Tata Sons has emerged as the highest bidder for the purchase of the debt-ridden state-run airline Air India, with a proposal of Rs 18,000 crore.
Afterworld, the secretary to the Department of Investment and Public Asset Management, Tuhin Kanta Pandey announced that debt-laden national carrier Air India returned to its founders Tata Sons, ending a decades-long struggle to offload the money-losing flag carrier.
Followed by that, a panel of ministers led by Home Minister Amit Shah accepted the offer on October 4.