After 68 years, Air India is returned back to Tata Group. Air India has been one of the most prestigious airlines in the world under the administration of Mr JRD Tata.
Earlier Air India was known as Tata Airlines which was founded in 1932.
The Air India crew members also expressed their enthusiasm and happiness after Tata Sons welcomed back Air India.
The aviation division of Tata Sons was listed as Air India, then in 1948, the Air India International was put into motion with flights in Europe. This was among the first public-private partnerships in India.
It was nationalized in 1953, and for over four decades it guarded the majority of the domestic airspace.
In 1994-1995 when the aviation sector opened to the private competitors, they started offering cheaper tickets. Gradually Air India started alleviating market share.
Air India and Indian Airlines merged, suffered losses while retaining the brand name Air India in 2007.
In 2017-2018 NDA Government’s first attempt failed at selling its stake, led by BJP’s failed attempt in 2021.
Finally, Tata Group wins back Air India with a ₹18,000 crore bid with the government against a reserve price of ₹12,906.
Ratan Tata said “Mr JRD Tata would have been overjoyed if he was in our midst today. Welcome Back, Air India”
Currently, Tata Group operates Vistara, a joint venture with Singapore Airlines and AirAsia India, a venture with Malaysia’s AirAsia Group Bhd.
The airline will be transmitted to the Tata Group with a debt of ₹15,300 crores. Also, Tata Group will have to pay ₹2,700 crores in cash which will be transferred to AIAHL, after transferring excel liabilities it would be around ₹44,679 crores.
Air India Express has 25 Boeing 737-800 NG planes. Also, Tata Group will have the holding of iconic brands like Indian Airlines, Air India, and the Maharajah.