Air India Board Members Asked To Resign Ahead Of Takeover By Tata Sons, Says Report
Tata Sons was picked up as the winning bidder for the debt-laden Air India in October
New Delhi: Board members of Air India were asked to resign last week and they are expected to do so at their last meeting next month before Tata Sons are likely to take over the airline in January, reported Hindustan Times.
“Seven board members have been asked to resign. These include four functional directors, two government nominee directors, chairman, and managing director (CMD). The board of directors have to resign... (before the transfer of control) takes place after the (last) board meeting of Air India,” said an airline official, requesting anonymity. He added the board members were asked to resign at a meeting on November 15, the HT report said.
Another official of Air India said the last board meeting is expected to be held in the second or the third week of December after which all the seven directors will resign. “This will include BJP’s Syed Zafar Islam, the non-official director of the airline,” said the second official, who did not wish to be named.
Tata Sons was picked up as the winning bidder for the debt-laden Air India in October. Air India, which was founded in 1932 as Tata Airlines, was nationalised in 1953.
According to Economic Times, Tata Sons has also started the merger process of Air India with Air Asia India. Tatas own 84 per cent stake in Air Aisia India. Tatas also won 51 per cent stake in Vistara, while Singapore Airlines owns the rest.
The Tatas had plans to create a single airline entity for a long and now it can move forward with it after successfully acquiring Air India.
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