It’s done. Air India Takeover by Tata Group complete

Today, January 27, 2022, is when the transaction between the Government of India and the Tata conglomerate, the original owner of Air India, before its nationalisation is completed. The Tata Group had won the bid towards the airline’s privatisation in October 2021 and signed a share purchase agreement the same month.

Air India Takeover by Tata Group complete

This afternoon, the procedureal formalities to complete the take over of Air India by the Tata Group were completed. This morning, a board meeting was held at Air India Limited, and at the Tata Sons end as well. Subsequently, the consideration payable to the Government of India, INR 2,700 Crores was transferred to the Government accounts. There was a meeting held between the Prime Minister of India, Mr. Narendra Modi and the Tata Group Chairman, Mr. N Chandrasekaran before the transaction was closed out.

Subsequently, at a joint meeting held at the Airlines House in Delhi, which is the Air India headquarters, the Tata Group was handed over control of the airline. Here are some pictures from the boardroom.

 

Here is a happy family image of the two sides.

In a statement issued by the Tata Group, they said,

The Tata Group today announced the completion of the transaction for purchase of Air India from the Government of India. The Tata Group takes over management and control of the airline, starting today.

The transaction covers three entities – Air India, Air India Express and AI SATS. Air India is India’s flag carrier and premier full service airline. Air India Express is a low-cost carrier. AI SATS provides a comprehensive suite of ground handling and cargo handling services.

Chairman N Chandrasekaran said,

We are excited to have Air India back in the Tata group, and are committed to making this a world-class airline. I warmly welcome all the employees of Air India, Air India Express and AI SATS to our Group, and look forward to working together.

The Government of India also confirmed that the airline is no longer under their control.

From tomorrow onwards, new soft touches are expected to be rolled out on flights and Air India will be recognised as a Tata company. An email was sent out to all Air India employees by the Group Chairman as well.

Bottomline

Two years after starting the process for the third time, the Government of India has managed to sell Air India, to founders at the Tata Group on January 27, 2022. From today, Tata Group is the owner of the airline.

We wish them best of luck in turning around the airline to its original stature!


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About Ajay

Ajay Awtaney is the Founder and Editor of Live From A Lounge (LFAL), a pioneering digital platform renowned for publishing news and views about aviation, hotels, passenger experience, loyalty programs, travel trends and frequent travel tips for the Global Indian. He is considered the Indian authority on business travel, luxury travel, frequent flyer miles, loyalty credit cards and travel for Indians around the globe. Ajay is a frequent contributor and commentator on the media as well, including ET Now, BBC, CNBC TV18, NDTV, Conde Nast Traveller and many other outlets.

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Comments

  1. Ajay, any thoughts on applying for the SBI-AI co-branded card? Or should we hold out for a bit on any new cards that may be in the pipeline and changes that might come up within Flying Returns?

  2. I have high hopes given the combined potential of Air India’ routes, Vistara’s soft/hard products and the market share of the two along with Air Asia. If the Tatas play their cards well, this could be a great success. They surely face many challenges. I wish them the best. India deserves to have a good flag carrier.

      • For sure I don’t expect any M&A activity between AI/IX/UK/I5 immediately. Primarily because UK and I5 are JVs. But I can’t imagine all 4 being run independently too long. It would be very interesting to see how SQ and Air Asia respond to this in the long term. They obviously have had plenty of time to ponder over it as the AI deal must have been years in the making.

    • I’m sure @Ajay would agree, Vistara’s soft product has taken a serious beating over the last few years. It’s nowhere close to what it once was and what was promised. I wish Air India charts it’s own path under the Tatas rather than follow Vistaras.

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