October 15th, 2021 | Updated on June 25th, 2022
Tata Sons regained control of Air India nearly 70 years after it was nationalized, with salt-to-software conglomerate wmerging the winner of the bid for the state-owned airline.
Here’s your 5-point guide to this important news
1. Air India has been sold to Tata Sons for Rs 18,000 crore, after the conglomerate outbid the consortium headed by the SpiceJet chief Ajay Singh to be the winning bidder for the state-owned airline by more than Rs 2,900 crore.
2. Air India’s total debts are at more than Rs 60000 crore, while the government has to pay nearly Rs 20 crore every single day.
3. Tata Sons will pay Rs 2,700 crore in cash to the government, and will take over the debt of over Rs 15,300 crore. Following the agreement, the government will take on debt of more than Rs 46,262 crore as well as non-core assets, including construction and land worth 14,718. The entire amount will be handed over to the holding company of the government, AIAHL.
4. There will not be cuts in the initial year. Air India employees will be provided with a voluntary retirement plan or VRS during the following year. Gratuities and Provident Funds benefits will be available on a regular basis to employees.
5. Five years later, Tata Sons can transfer the brand name, but it must be transferred to an Indian., so that the name Air India – remains Indian for the rest of time.