Air India handover: Tata Sons Chairman N Chandrasekaran meets PM Modi
Premium- Tata Sons Chairman N Chandrasekaran met Prime Minister Narendra Modi ahead of the official handover of Air India
Ahead of the official handover of Air India, Tata Sons Chairman N Chandrasekaran met Prime Minister Narendra Modi on Thursday. The Air India Board will likely resign today and Tata nominees may replace the government members.
A consortium of lenders led by State Bank of India (SBI) has agreed to provide loans to Tata Group for the smooth operations of loss-making Air India.
Reports said the SBI-led consortium has agreed to grant both term loans and working capital loans depending on the airline's requirements.
All large lenders – Punjab National Bank, Bank of Baroda, and Union Bank of India – are part of the consortium.
Tata Group, which won the bid to acquire the national carrier along with Air India Express and 50% stake in AISATS in October 2021, is expected to formally takeover the airline today.
Talace Private Limited -- a subsidiary of the Tata Group's holding company Tata Sons -- on October 8, 2021, won the bid to acquire debt-ridden Air India.
Tatas had beat the ₹15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of ₹12,906 crore set by the Centre for the sale of its 100% stake in the loss-making carrier.
While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tata Group's stable – it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines.
The deal with the Centre does not include land and buildings. According to the agreement, Tata Group will retain all the employees of Air India at least for a year.
With the acquisition, Tata Group will have access to a fleet of 117 wide-body and narrow-body aircraft, and 24 narrow-body aircraft of Air India Express. Besides, it will get control of 4,400 domestic and 1,800 international landing, and parking slots at domestic airports as well as 900 slots abroad.
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