Last October, the government signed a share purchase deal with the Tata Group to sell national carrier Air India for Rs 18,000 crore. Today, the Tata Group is set to gain full ownership of the airline, which was formed in 1932. Once the handover procedure is finished, the monetary portion of the agreement will be finalized. The agreement between Air India and special-purpose company AIAHL for the transfer of non-core assets has been notified by the government, ahead of the Tata Group’s purchase of the national carrier.
The Tata Group would pay Rs 2,700 crore in cash and cover the airline’s debt of Rs 15,300 crore. The agreement also involves the sale of Air India Express and AISATS, the company’s ground handling subsidiary. The deal was supposed to be completed by December 2021, but it was later postponed until January 2022 due to longer-than-expected administrative processes. After 67 years, Air India will be welcomed back into the Tata family. In October 1932, the Tata Group established Air India as Tata Airlines. The airline was nationalized by the government in 1953.