Tata will again dominate the aviation industry with the Air India deal, Ratan Tata said - Welcome Air India
Tata Sons' unit Talace Pvt Ltd has won the Air India deal for Rs 18000 crore. Due to the huge debt on Air India, the government has disinvested it. However, the business expansion of Talace Pvt Ltd will be tremendous.
Tata Sons' unit Talace Pvt Ltd has won the Air India deal for Rs 18000 crore. Due to the huge debt on Air India, the government has disinvested it. However, the business expansion of Talace Pvt Ltd will be tremendous. 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.
Ratan Tata's tweet
Expressing happiness over this deal, Ratan Tata tweeted saying 'Welcome Air India'. Also shared an old picture.
Welcome back, Air India 🛬🏠 pic.twitter.com/euIREDIzkV— Ratan N. Tata (@RNTata2000) October 8, 2021
Cash support of Rs 54584 crore
On the other hand, news agency Ani quoted DIPAM Secretary Tuhin Kant Pandey as saying that the government provided cash support of Rs 54584 crore to handle this airline from 2009-10. At the same time, guaranteed support of Rs 55,692 crore was given. Adding this amount makes Rs 1,10,276 crore.
60 thousand crore burden
The auction also includes a 50 percent stake in its low-cost carrier Air India Express and common freight and passenger-cargo handling unit AISATS. The total accumulated tax burden on the company is Rs 60,000 crore. Civil Aviation Minister Hardeep Puri had earlier said that there was no other way but to privatize Air India or shut it down.
The airline is at loss since 2007
The airline has been making losses since its merger with domestic operator Indian Airlines in 2007. The stake sale process was delayed due to the COVID-19 pandemic and the government extended the deadline for submission of initial bids five times. The levy was started in December last year to buy loss-making Air India. Spicejet had also bid for this deal, but the deal fell in Tata's bag.