Air India privatised

Tata Group is the successful bidder for the troubled national flag-carrier, Air India.

Best known in the UK for its ownership of Jaguar Land Rover its history goes back 150 years and is today one of India’s largest industrial conglomerates with the President 83-year-old Ratan Tata.  Air India was first launched by Tata in 1932. It was nationalised in 1953.

The winning bid of £1.7bn beat an offer of £1.5bn from SpiceJet Chief Executive, Ajay Singh.

Tata will also take complete control of subsidiary Air India Express, a low-cost carrier that focusses on short-haul international operations especially in the Middle East market.

Tata also takes a 50% stake in the joint venture Air India SATS, an airport services and ground handling operation.

Commenting on the development, N. Chandrasekaran, Chairman, Tata Sons, 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.

“It will be our endeavour to build a world-class airline that makes every Indian proud.”

Air India has a fleet of 127 aircraft, both wide- and narrow-bodied. including four Boeing 747s, likely to be replaced by Boeing 777-300ER.

The carrier has been consistently unprofitable in recent years, with an initial attempt to sell the carrier in 2018 attracting little interest.

www.airindia.in

www.tata.com

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Frank Singh, Hounslow

“Goodness gracious me”. About time too.