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Updated October 8th, 2021 at 19:26 IST

Ratan Tata 'welcomes Air India back'; exclaims 'JRD Tata would've been overjoyed'

'Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years', Chairman Emeritus of the Tata Group, Ratan Tata said.

Reported by: Sudeshna Singh
Ratan Tata
Credit-PTI | Image:self
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Moments after Tata Sons, via their wholly-owned subsidiary Talace Pvt Ltd, won the bid for acquiring national carrier Air India, Chairman Emeritus of the Group, Ratan Tata on Friday 'welcomed back' the air carrier. While admitting that it will take considerable effort to rebuild Air India, Ratan Tata exuded hope that it will provide a very strong market opportunity to the Tata Group's presence in the aviation industry. 

"On an emotional note, Air India under the leadership of Mr JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr JRD Tata would have been overjoyed if he was in our midst today," Ratan Tata said in a picture shared on his official Twitter post. 

In the bidding for Air India, in total seven bids were received, of which 5 did not qualify. The bids that made the cut were that of Tata Sons and Ajay Singh, the promoter of SpiceJet. Tata Sons placed the winning bidding at Rs.18,000 crore. Apart from a 100% stake in Air India and its low-cost arm - Air India Express, the winning bid also includes a 50% stake in ground-handling company Air India SATS Airport Services Private Limited (AISATS).

It is pertinent to mention here that Air India's debt currently stands at Rs 61,562 crore. Of the Rs 61,562 crore, the Tata Sons will retain Rs 15,300 crore of debt while the remaining Rs 46,262 crore of debt will be retained by a company that will be spun off, called AIHL, which will continue to be owned by the Government. 

The transaction is expected to close by the end of December 2021, said Tuhin Kant Pandey, Secretary, DIPAM.

History of Air India

Tata Group's association with Air India dates back to1932 when legendary industrialist and India’s first commercially licensed pilot Jehangir Ratanji Dadabhoy (JRD) had launched the national carrier under the name Tata Air Services. Later with a changed name- Tata Airlines, the air carrier company supported various missions for the British Royal Air Force during World War II in Burma. In 1946, right after the completion of the war, the air carrier company again changed its name, this time to the iconic Air India. With Air Corporations Act in 1953, the government took over the company from Tata Sons and nationalized it.

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Published October 8th, 2021 at 19:26 IST

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