Tata Sons take over Air India, Scindia says it reflects 'govt's ability' in disinvestment

"We are excited to have Air India back in the Tata Group, committed to making this a world-class airline," says Tata Sons Chairman N Chandrasekaran who also said that Tata Group acknowledges PM Narendra Modi's commitment to reforms and faith in India's entrepreneurship spirit.

New Delhi: "We are excited to have Air India back in the Tata Group, committed to making this a world-class airline," says Tata Sons Chairman N Chandrasekaran who also said that Tata Group acknowledges PM Narendra Modi's commitment to reforms and faith in India's entrepreneurship spirit.

Earlier today, Tata Sons Chairman N Chandrasekaran called on Prime Minister Narendra Modi ahead of the government's handover of Air India to the company today thus completing the disinvestment process.

"Officially Air India hands over to Tata Group today in the afternoon. Tata Group Chairman N Chandrasekaran will be in the ministries for the official handover process," a senior government official said. A formal announcement from the Tata Group regarding the official handover process will be made today.

Last October, the government accepted the highest bid made by Tata Sons for 100 percent equity shares of Air India and Air India Express along with its 50 percent stake in ground-handling company AISATS -- the first privatization in 20 years.

"The disinvestment of Air India is now decided to be on the 27 January 2022. The closing balance sheet as on 20th Jan has to be provided today 24th Jan so that it can be reviewed by Tatas and any changes can be effected on Wednesday," Vinod Hejmadi, Director Finance, Air India, had informed the employees in an email last week.

"We have done an excellent job till now in providing all support for the disinvestment exercise. The next three days will be hectic for our department and I request all of you to give your best in these last three-four days before we get divested (sic)," Hejmadi said.

Maharaja is the official mascot of Air India which operates globally apart from domestic operations. According to the available data in 2020, "Air India operates around 101 destinations including 57 domestic operations including 33 countries on four continents around the world."

Aviation experts say that Air India is carrying a substantial number of the latest aircraft in its fleet from both Airbus and Boeing which is Air India's strength. Air India codeshares with Star Alliance and operates a total of 172 wide and narrow-body aircraft with Air India Express globally including domestic operations.

The Union Minister for Civil Aviation Jyotiraditya M. Scindia tweets, "It is indeed noteworthy that the disinvestment process of @airindiainhas been brought to a successful conclusion in a time-bound manner. This proves the govt’s ability, and the resolve to carry out disinvestment effectively in non-strategic sectors in the future."

(With agency inputs)