With the completion of all formalities, Air India was back in the Tata fold on Thursday.
“All formalities have been completed,” Tuhin K. Pandey, secretary, Department of Investment and Public Asset Management (Dipam), told the media. “Air India disinvestment transaction is now closed. The consideration amount of Rs2,700 crore (Rs27 billion) has been received by the government. The shares have been transferred to Talace. Consideration amount has been received and so the new owner is Talace. The debt of Rs15,300 crore (Rs153 billion) has been accepted by the new owners.
N. Chandrasekaran, chairman, Tata Sons said: “We are totally delighted that this process is complete. We are very happy to have Air India back in the Tata fold. We look forward to working with everyone.”
The group will now have a 27 per cent market share in the Indian aviation sector; it has a 51 per cent stake in Vistara and an 84 per cent equity in Air Asia.
The Tata Group will now have a 100 per cent stake in Air India, an airline that had been started as Tata Airlines in 1932 by Jehangir Ratanji Dadabhoy Tata, but taken over by the Indian government in 1953. The group will also have a 100 per cent stake in Air India Express, its international, low-cost carrier, and 50 per cent in Air India SATS, a ground handling joint venture.
“Best wishes to the new owners,” tweeted Jyotiraditya M. Scindia, India’s civil aviation minister. “I am confident that the airline will bloom under their wings, and pave the way for a thriving & robust civil aviation industry in India."
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