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‘Suspense’ over Air India ends; Tata Sons officially declared winner of bidding process

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New Delhi: Days after the government denied reports of Tata Sons taking over national carrier Air India, it was officially announced on Friday that the group had won the bid and would now take over the loss-making entity.

For Air India, it will be home-coming. It had been founded by JRD Tata as Tata Airlines in 1932, but had been taken over by the government of India after Independence.

On October 1, reports emerged that Tata sons had won the bid to purchase the debt-ridden airline. However, within hours Department of Investment and Public Asset Management (DIPAM) rejected the reports and said that the media reports were incorrect.

Tata Sons’ winning bid of Rs 18,000 crore for Air India was higher than the reserve prices of Rs 12,906 crore, said DIPAM secretary Tuhin Kanta Pandey on Friday.

As per the conditions, the group will have to retain all employees of Air India for 1 year and can then offer VRS in the second year.

 

‘Welcome back’, Ratan Tata tweets

Confirming the development in a tweet, Ratan Tata wrote, “The Tata Group winning the bid for Air India is great news! While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group’s presence in the aviation industry.”

He recalled that it had gained the reputation of being one of the most prestigious airlines in the world under JRD Tata.

“Tatas will have the opportunity of regaining the image and reputation enjoyed in earlier years. Mr JRD Tata would have been overjoyed if he was in our midst today,” Ratan Tata said.

He ended his note with “Welcome back, Air India!”

 

 

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