Finally, the time comes to hand over Air India to Tata

The time has finally come to hand over Air India to Tata. Debt-ridden Air India will be handed over to the Tata Group later this week on January 27.

Finally, the time comes to hand over Air India to Tata

Finally, the time comes to hand over Air India to Tata

The time has finally come to hand over Air India to Tata. Debt-ridden Air India will be handed over to the Tata Group later this week on January 27. Sources familiar with the matter said on Monday that the remaining formalities of this deal would be completed in the next few days.

In a mail to the employees of Air India, Vinod Hejmadi, Director-Finance of the company has said that today the balance sheet will be closed so that Tata can review it. Now if there is any change, it can be done on Wednesday 26 January.

The deal was done for Rs 18,000 crore

Significantly, on October 8, 2021, the government had sold Air India to Tales Private Limited, a subsidiary of Tata Group's holding company, for Rs 18,000 crore last year. Subsequently, on October 11, a letter of intent was issued to the Tata Group, officially confirming the government's intention to sell its 100 percent stake in the airline. After this, on October 25, 21, the Center had signed a Share Purchase Agreement (SPA) for this deal.

Third airline brand in Tata group

The rest of the formalities regarding the deal are expected to be completed in the next few days and the airline will be handed over to the Tata group by the end of this week, officials said on Monday. As a part of the deal, the Tata Group will also be handed over a 50 percent stake in Air India Express and ground handling arm Air India SATS. Whereas this will be the first privatization after 2003-04. With this, Air India will be the third airline brand in the Tata group. Earlier, the group held a majority stake in AirAsia India and Vistara.