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Tata Group calls historic takeover of Air India ‘rare privilege’, vows to make every Indian proud
In a statement, a spokesperson of the company said, “At the Tata group, we are delighted to be declared as the winner of the bid for Air India. This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline.”
The Tata Group on Friday called its retaking of the ailing national carrier Air India a “historic moment”, adding that it was a “rare privilege” to be able to “own and operate the country’s flag bearer airline”.
In a statement, a spokesperson of the company said, “At the Tata group, we are delighted to be declared as the winner of the bid for Air India. This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline.”
The Tata Sons won the bid for the debt-laden airline for ₹18,000 crore, by buying out the Indian government of its 100 per cent stake. The Tatas will now be in control of Air India's 4,400 domestic, 1,800 international landing and parking slots at domestic airports, and 900 slots at airports overseas, including the one at Heathrow Airport in London.
Along with the airline, the Tatas have also acquired around a quarter of Air India's dues of 615 billion rupees, while the remainder will be transferred to a special-purpose vehicle. However, the company struck an optimistic tone about the airline’s future and insisted that they will “endeavour to build a world-class airline which makes every Indian proud”.
As it welcomed back the airline into its fold after 68 years, the salt-to-software conglomerate also paid a glowing tribute to its erstwhile chairman JRD Tata who had piloted the airline’s first flight in 1932. “On this occasion, I would like to pay tribute to JRD. Tata, pioneer of Indian aviation, whose memory we cherish,” the spokesperson further said.
After its founding, the airline used to fly mail and passengers in a single-propeller de Havilland Puss Moth from Karachi to Bombay (modern day Mumbai). The airline was nationalised in the 1950s by the Indian government.
Since the 1990s, Air India has been struggling to survive in the aviation sector which is characterised by extreme competition from low-cost airlines, both domestic and international.
Successive governments have been trying to sell the debt-laden airlines but companies have been hesitant to acquire the national carrier over its enormous debt.
Besides Air India, the Tatas own a 51 percent stake in Vistara, with Singapore Airlines holding the remaining 49 percent , and an 84-percent stake in AirAsia.
