Tatas to set up its own board for Air India; Ratan Tata likely to meet PM Narendra Modi today

Ahead of its official transfer, the national carrier Air India and its new owner Tata Group’s board meeting to be held on Thursday afternoon, Zee Business Special Correspondent Ambarish Pandey mentioned in a source-based report.  

Post the transfer of Air India operations to Tata Group, a meeting between Prime Minister Narendra Modi and Ratan Tata is highly likely, sources told Zee Business. 

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According to Pandey, “All officers may resign from their posts after Air India's board meeting and Tata group will constitute its own board for the Maharaja.” 

On Tuesday, Pandey had reported that Tata Group will formally take the transfer of Air India by Thursday evening, and the Department of Investment and Public Asset Management (DIPAM) and Finance Ministry officials, along with top Tata Group executives will witness it. 

On October 8, 2021, the government had sold Air India to Talace Private Limited—a subsidiary of the Tata group's holding company—for Rs 18,000 crore. Several analysts had believed with Tatas entering into Aviation space, a re-rating of the sector is likely. 

Besides, the Tata group will also be given Air India Express and a 50 per cent stake in ground handling arm Air India SATS as a part of the deal. 

Earlier on Thursday, the government has also notified the agreement between Air India and special purpose vehicle AIAHL for the transfer of non-core assets, ahead of the national airline's takeover by the Tata Group. 

The Tata Group is expected to take full control of the airline, founded in 1932, on Thursday. The cash component of the deal would come once the handover process is completed. 

The Tata Group would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt. The deal also includes the sale of Air India Express and ground handling arm AISATS (Air India Sats Airport Private Limited)