Air India Likely To Be Handed Over To Tata Group

Air India to be the third airline under Tata

On Thursday, Air India is likely to be handed over to Tata Group. Almost after 69 years, it was taken from the conglomerate.

According to a statement given by the airline’s officials it said, On Monday the airline’s balance sheet was finalized and shared with the Mumbai-based conglomerate and the company is expected to review it by Wednesday after which the following which the transfer will take place.

On October 11, the central government had issued the Letter of Intent (LoI) to the Tata Group, confirming its readiness to transfer 100 percent stake in the airline. At the time, the expected timeline for transfer was set for December-end further, this was extended to January-end on account of various pending approvals from global regulators and the finalization of the balance sheet by the lenders and the airline’s lessors.

As per the statement given by Air India’s Director, Finance, Vinod Hejmadi wrote: “The disinvestment of Air India is now decided to be on the 27th January 2022. The closing balance sheet as of 20th January has to be provided today, 24th January, so that it can be reviewed by Tata’s and any changes can be effected on Wednesday”.

Further he said, “We have done an excellent job till now in providing all support for the disinvestment exercise. The next three days will be hectic for our department and I request all of you to give your best in these last three-four days before we get divested. We may have to work late in the night to complete the task given to us. I seek the cooperation of one and all.”

The first such attempt was made in 2001. That was when Atal Bihari Vajpayee was prime minister. But the bid was not successful. This will be the center's first privatization. This will be the third airline under Tata. The government on October 8, has sold Air India to Tata group for rupees 18,000 crores.