Tata Sons have won the bid for India’s struggling national carrier Air India, said Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM). As the acquisition is all set to happen, here are some of the assets that Air India will be bringing to Tata Sons.
The stake sale comprises Air India’s whole ownership of AI Express Ltd and a 50% stake in Air India SATS Airport Services Private Ltd. When combined with AIXL, the debt-laden carrier controls 50.64% of the International market share among Indian carriers, Money Control reported.
Tata group will also get the second-largest fleet in the country of 144 aircraft. Currently, Air India serves 42 international destinations. The government is divesting itself of its full share in Air India. Tata Group already holds around 84% of AirAsia India and 51% of Vistara.
As per a Money Control report, Tata Sons would gain ownership of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at foreign airports, as a result of the airline’s divestment.
Domestic airports have grown just as crowded as international airports throughout the years. While the reasons are numerous, beginning with years of neglect, a slot pair at such airports ensures some traffic. Air India operated 2712 departures in November 2019 and is presently the second-largest participant at Delhi – the country’s busiest airport in terms of air traffic and departures.
Air India holds 2738 slots across 42 destinations, including some of the busiest airports in the world, including London Heathrow, New York JFK, Singapore Changi, and Hong Kong. Air India Express has 651 weekly slots, including those at congested airports such as Singapore and Dubai.
The Tata Group founded the airline in 1932, and it was nationalized in 1953. The Mumbai-based company has previously expressed interest in purchasing the airline. Since its merger with domestic carrier Indian Airlines in 2007, Air India has been operating at a loss.
Last month, the country’s largest corporation filed their final bids to purchase a 100 % ownership in the flag carrier. They were competing against SpiceJet promoter Ajay Singh.