On Thursday, the Tata Group regained the ownership of Air India, whose authority it had lost nearly seven decades ago.
Civil aviation minister Jyotiraditya Scindia
Civil aviation minister Jyotiraditya Scindia on Friday told the Tata Group’s takeover of Air India is a win-win situation for all stakeholders concerned, adding the agreement represents a huge quantum jump in the capabilities of the country’s aviation industry.
Talking to a news reporter, Scindia expressed the agreement is also a representation of the culmination of a long process that took nearly two decades to conclude. “It also sets in perspective a 69-year-old history which was begun on the wrong step by the nationalization of an airline that belonged to the private sector, It is going back to the private sector,” Scindia told.
“We will have a player with tremendous abilities for international and domestic traffic — a party that likely has a game plan and plan to assure the best value for our customers. It will be a win-win position for all stakeholders in this industry,” the Union minister said.
Scindia said Air India
Scindia told Air India had a running loss worth ₹85,000 crores over the last 14 years and it was earning losses of nearly ₹20 crores daily. “That money of the government, which is the taxpayer’s funds, can be operated in areas that need social development and investment,” he told.
On Thursday, the Tata Group regained the ownership of Air India, whose control it had lost almost seven decades ago. The conglomerate vowed that it would restore the Maharaja’s past glory.
- JRD Tata, the founder of the Tata Group, had established the airline in 1932 and it was nationalized in 1953. It was the nation’s first carrier flying mail between Karachi in then-undivided, British-ruled India and Bombay.
According to a report given by the Union finance ministry, Air India’s strategic disinvestment transaction was completed on Thursday with the Centre receiving the consideration of ₹2,700 crores from Talace Pvt Ltd, which is a wholly-owned subsidiary of Tata Sons.
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Tata Group won the bid from Air India
Department of Investment and Public Asset Management (DIPAM) secretary Tuhin Kanta Pandey told on Thursday the strategic disinvestment transaction of the airline concluded successfully with the transfer of 100 percent shares to Talace along with the management control. Pandey added a unique board that took control of Air India.
“We are excited to have Air India back in the Tata Group and are committed to creating this a world-class airline,” Tata Sons Chairman N Chandrasekaran told on Thursday.
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