CCI approves acquisition of Air India stake by Tata owned Talace Private Limited

The CCI approves the acquisition of a shareholding in Air India Limited, AIXL and AISATS by Tata-owned Talace Private Limited. Post disinvestment, Talace will continue to provide Gratuity and PF benefits to the employees, Civil Aviation Minister VK Singh told the Parliament.

New Delhi: The Competition Commission of India (CCI) approves acquisition of a shareholding in Air India Limited, Air India Express Limited (AIXL) and Air India SATS Airport Services Private Limited (AISATS) by Tata-owned Talace Private Limited (Talace).

The proposed combination envisages the acquisition of 100% equity share capital of Air India and AIXL, and 50% equity share capital of AISATS by Talace, said a statement from the Civil Aviation ministry.

Earlier in the day, the Minister of State in the Ministry Of Civil Aviation V.K.Singh in a written reply to a question in Rajya Sabha, clarified that the government of India will continue to provide Gratuity and PF benefits to its existing employees of Air India and Indian Airlines even after privatization.

"Interests of the employees have been taken care of by the Government and incorporated in the Share Purchase Agreement signed with the Strategic Partner on 25.10.2021," Singh said.

In accordance with the applicable laws, the Strategic Partner, post disinvestment, shall continue to provide Gratuity and PF benefits to the employees.

The arrangement with the employees and Life Insurance Corporation of India for administrating the existing Air India and Indian Airlines employees Self Contributory Superannuation Pension Fund Trust will continue, he further added.

Further, with regard to the medical benefits, they are to be made available to the retired and eligible retiring AI beneficiaries by the Government.

Earlier in the month of October this year, the Tata's nearly after 68 years, won the bid to acquire debt-laden state-run Air India offering Rs 18,000 crore for acquiring 100 per cent holding. The acquisition gave Tatas 141 planes and 900 slots at overseas airports.

Air India is wholly owned by the Government of India. Air India, along with AIXL, is primarily engaged in the business of providing domestic scheduled air passenger transport service, international scheduled air passenger transport service, and air cargo transport services.

AISATS is engaged in the business of providing ground handling services at the following domestic airports i.e. Delhi, Bengaluru, Hyderabad, Mangalore and Thiruvananthapuram, as well as cargo handling services at Bengaluru airport.

Talace is a wholly-owned subsidiary of Tata Sons. Tata Sons is an investment holding company, which is registered as a core investment company with the Reserve Bank of India (RBI) and classified as a “Systemically Important Non-Deposit Taking Core Investment Company”.