Tata Sons chairman may meet PM before handing over to Air India: Sources

In October last year, the Center sold Air India to Tata for Rs 18,000 crore.

New Delhi:

Tata Sons chairman N Chandrasekaran is likely to meet Prime Minister Narendra Modi on Thursday before the official handover to Air India, sources said. ndtv, He said the Air India board is expected to resign today and Tata nominees can replace the government members.

In October last year, the government sold Air India to Tales Pvt Ltd, a subsidiary of the Tata group’s holding company, for Rs 18,000 crore.

After that, a letter of intent (LOI) was issued to the Tata group confirming the government’s willingness to sell its 100 per cent stake in the airline. The Center then signed a Share Purchase Agreement (SPA) for the deal.

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

Tata had surpassed the Rs 15,100 crore offer by SpiceJet promoter Ajay Singh-led consortium and the Rs 12,906 crore reserve price set by the government for the sale of its 100 per cent stake in the loss-making carrier.

While this will be the first privatization since 2003–04, Air India will be the third airline brand in the Tata stable – it has a majority stake in Vistara, a joint venture with AirAsia India and Singapore Airlines Ltd.

At present, Air India handles over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots abroad.

Tata founded Tata Airlines in 1932, which was later renamed Air India in 1946. The government took control of the airline in 1953, but JRD Tata remained its chairman until 1977.


Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *