Tata Sons chairman N Chandrasekharan said will make Air India world-class airline.
Welcoming Air India back to the Tata group is a delightful experience, Tata Sons Chairman N Chandrasekharan told reporters today after the government formally handed over the debt-heavy carrier to the salt-to-software conglomerate.
"Totally delighted that this process is complete. Very happy to have Air India back in the Tata group. We look forward to working with everyone to create a world-class airline," Mr Chandrasekharan told reporters after meeting government officials at the handover meeting.
The Tata Sons Chairman met with Prime Minister Narendra Modi earlier in the day.
Tata group's holding company Talace Pvt Ltd bought Air India for Rs 18,000 crore after it outbid a consortium led by SpiceJet chief Ajay Singh.
"Now, the new owners (of the airline) are Talace," Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey told reporters today.
Air India is the third airline brand in the Tatas' stable - it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.
The latest deal completes a full circle as Air India was founded in 1932 under the name, Tata Airlines, by family scion and aviation enthusiast JRD Tata.
"On an emotional note, Air India, under the leadership of Mr JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr JRD Tata would have been overjoyed if he was in our midst today," Tata Sons Chairman Emeritus Ratan Tata had said in October last year after the group won the bid.
The deal with Tata Sons also includes government's sale of 50 per cent of ground handling arm Air India-Sats, and Air India Express.
The transaction does not include non-core assets including land and building, valued at Rs 14,718 crore, which are to be transferred to the government's holding company AIAHL.
Air India's total debt at the time when Tata Sons won the bid stood at over Rs 60,000 crore; the government had been losing nearly Rs 20 crore every day.
