Sun, 2 Oct 2022

The Republic of India

India sells national carrier, Air India to Tata Group.
 
By: Morolake Kolade
Fri, 8 Oct 2021   ||   India,
 

FRIDAY 8th October, 2021: India's national carrier, Air India, has been sold to the country's largest conglomerate, Tata group. The government of the country sold the airline to the company which was the highest bidder at nearly $2.4bn.

According to reports, Tata group founded the airline in 1932, before it was taken over by the government in 1953.

The government had for years been trying to sell the airline, which has racked up losses worth $9.5bn. The sale for the airline however came through when the government sweetened the deal by making the terms of the debt less onerous for the buyer.

It has been revealed to the public the amount of debt the Tata group will take on under the new terms.

This sale comes as a boost to the government, especially to Prime Minister Narendra Modi, who had been very keen to sell the government's entire interest in the airline.

Tata sons run two airlines in India. Vistara, a full-service carrier in partnership with Singapore Airlines, and AirAsia India, a budget airline in partnership with Malaysia AirAsiaBhd.

Air India has many assets, including prized slots at London's Heathrow airport, a fleet of more than 130 planes and thousands of trained pilots and crew.

 

 

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