Airline goes back to the Founder after 91 years and as expected , the Indian Flag bearer - Air India goes to the Tata Group !
A panel of Indian ministers accepted a proposal recommending Tata Sons' bid for money-losing state-run airline Air India on Friday, 1 October, Bloomberg News reported.
Tata Sons Ltd, the conglomerate that controls Jaguar Land Rover and owns a majority stake in AirAsia India and Vistara , submitted a bid for Air India earlier this month. The other bidder is SpiceJet Ltd. owner Ajay Singh in his personal capacity.
Just a day earlier, former Air India director Jitender Bhargava had said that Tata Group will likely receive the government’s nod considering how the company is capable of revamping the flag carrier.
“Tatas have been very, very passionate about Air India," he was quoted as saying by Bloomberg.
Proceeds from Air India’s divestment will be a critical source of revenue to plug the government’s widening budget deficit and as it looks to spur the pandemic-hit economy.
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After Two previous attempts to divest the carrier , this time it was a success . In the year 2001, Singapore Airlines Ltd. dropped its bid for a stake in Air India, citing some political interference in the way.
Also In 2018, IndiGo, India’s leading carrier, pulled out of the bidding process, quoting inability to buy the carrier in its entirety and make it profitable.
Today's Air India was 'Tata Airlines' of the past, before Indian Government converted it into a state backed company, was established in 1932 by the legendary industrialist and philanthropist J.R.D. Tata, who happened to be the India’s first licensed pilot.
