Air India finally returns to Tata's home. The handover process was completed last Thursday. The Tata group is also thrilled to have Air India back after seven decades. On the first flight after the handover, the pilot said to the passengers, "Welcome to the future of Air India." They want to see what we can achieve. We have to look to the future to build the kind of airline that the nation wants. In October last year, the Indian government sold Air India to Tata Group's Talas Pvt Ltd for Rs 16,000 crore. From then on, other processes related to sales started. According to the agreement, 50 per cent stake in Air India Express as well as Air India Express and Air India Sats (a company that handles matters other than ground handling) is also transferred to Talas Private Limited.
In October last year, the Indian government sold Air India to Tata Group's Talas Pvt Ltd for Rs 16,000 crore. From then on, other processes related to sales started. According to the agreement, 50 per cent stake in Air India Express as well as Air India Express and Air India Sats (a company that handles matters other than ground handling) is also transferred to Talas Private Limited.
On the day of the handover, Indian Prime Minister Narendra Modi held a meeting with Tata's chairman. It is clear from this incident that the Indian government is relieved of the privatization of Air India. That means both sides are happy with it.
The Tata group has agreed to bear the debt of the remaining Rs 16,000 crore of the company's assets worth Rs 14,000 crore and the proceeds from the sale of Rs 2,600 crore. Even then, the remaining Rs 44,000 crore has been settled in such a way that no party is harmed. Analysts believe that the arrangement of keeping both the buyer and the seller happy in this transaction will be an example in recent history.
Air India has been carrying the burden of losses uninterruptedly for 15 years. There are many other government companies or organizations like this, but none of them are close to Air India. The total loss of the company has exceeded 60 thousand crore rupees - the daily loss amount is 20 crore rupees.
Looking at these figures, even the most orthodox people in favor of state-owned industry may think that Air India has reached a stage from which it is almost impossible to cross. It is certain that their collapse is inevitable. It is accompanied by problems such as lack of airspace, dilapidated condition of hundreds of aircraft.
At present, 4,400 domestic and 1,600 international landing and parking slots at Indian airports are under the direct control of Air India. Air India has 900 such slots at various airports around the world. Air India now has a total of 141 aircraft in the hands of the Tata group. Of these, 42 aircraft were taken from other places on contract basis and 99 aircraft were their own.
Meanwhile, the Tata group has taken several plans to revive the huge loss-making Air India. People with long experience working in the aviation industry have been brought on board with the main objective of maintaining punctuality.
The business history of the Tata group in India is very old. Where they have given their hand, there is more or less gold, but this time a debt-ridden government agency bought it and brought it to the profit book in a magic spell, everyone is now waiting to see it.
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