Air India: From employee retention to fleet size- what comes as part of divestment deal?

Written By: ZeeBiz WebTeam Edited By: ZeeBiz WebTeam New DelhiZeeBiz WebDesk Updated on: January 27, 2022, 05.31 PM IST

In October 2021, Tata Group bought Air India from government at Rs 18,000 cr. In this around Rs 2,700 cr was to be given to the Government, while the remaining Rs 15,300 cr was taken by the Group as debt

In a big development the government handed over the national carrier to the Tata Sons and a meeting of the new board is also scheduled. Tata Sons Chairman made the announcement of the formal handover and also met Prime Minister Narendra Modi.

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Talace Private Limited -- a subsidiary of the Tata Group's holding company Tata Sons, on 8 October 2021, won the bid to acquire debt-ridden Air India.

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Also Read: Government formally handsover Air India to Tatas; new board to meet today, says Tata Sons Chairman N Chandrasekaran

Air India started suffering losses every year since its merger with Indian Airlines in 2007-08.

A Turnaround Plan (TAP) and a Financial Restructuring Plan (FRP) were approved for Air India by the previous UPA regime in 2012. However, the TAP did not work out as expected and Air India continued to reel under losses.

Also Read: Air India: Tatas get loan commitment from SBI-led consortium; from SBI, PNB to BoB, know existing exposure of banks in the national carrier

Over the last decade, more than Rs 1.10 lakh crore has been infused by way of cash support and loan guarantees into Air India to keep it afloat.

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