Air India To Be Handed Over To Tata Group On January 27, Say Officials

As a part of the deal, the Tata group will also be handed over Air India Express and a 50 percent stake in ground handling arm Air India SATS

New Delhi: The divestment of the India's national carrier, Air India, will likely to take place on January 27, said ANI, quoting senior government officials, on Monday.

ANI, in a tweet said, Air India disinvestment has been decided to take place on January 27, 2022.

In a letter to the employees, Air India's Director (Finance) Vinod Hejmadi said that the divestment of Air India has been decided to take place on January 27. The closing balance sheet was to be provided to Tata group on January 24 so that they can review the balance sheet and make necessary changes, if required, on Januray 25 (Wednesday). 

According to a report in Economic Times, Vinod Hejmadi in his letter appreciated the employees of national carrier for their work and support. Hejmadi in his letter said, "The next three days will be hectic for our department. I request all of you to give the best in the last three-four days before divestment. We may have to work late in the night to complete the task. I seek cooperation from one and all."

The Centre had on October 8 last year sold Air India to Talace Private Limited, a subsidiary of the Tata group’s holding company, for Rs 18,000 crore after a competitive bidding process. 

On October 11, a Letter of Intent (LoI) was issued to the Tata group confirming the government's willingness to sell its 100 percent stake in the airline. On October 25, the Centre signed the share purchase agreement (SPA) for this deal.

PTI in its report said that officials Monday informed that the remaining formalities regarding this deal are expected to be completed in the next few days and the airline will be handed over to the Tatas by the weekend.

According to the deal, the government will also hand over Air India Express and a 50 per cent stake in ground handling arm Air India SATS to the Tata group.

October 8 last year, Tatas had outbeat the Rs 15,100-crore offer by a consortium, led by SpiceJet promoter Ajay Singh, and the reserve price of Rs 12,906 crore set by the Centre for the sale of 100 per cent stake in Air India. Since 2003-2004, this will be the first major privatisation done by the government.

As of now Tatas own three airline companies. Air India will be the third brand in the Tatas' stable. The conglomerate holds a majority stake in AirAsia India and Vistara, a joint venture with Singapore Airlines.