AIR INDIA will likely be handed over to the Tata Group on January 27 with the disinvestment process reaching the final stages. The airline’s balance sheet was finalised and shared with the conglomerate, and the company is expected to review it soon, following which the transfer will be made.
The Tata Group is likely to operate three airlines - Air India, Air India Express and Vistara, after the government transfers the airline to the group and upon merger of AirAsia India and AI Express.
Vinod Hejmadi, Director Finance, Air India, said in an email, “The disinvestment of Air India is now decided to be on the January 27, 2022. The closing balance sheet as on January 20 has to be provided today Jan 24 so that it can be reviewed by Tatas and any changes can be effected on Wednesday.”
The email further noted, “The next three days will be hectic for our department and I request all of you to give your best in these last three four days before we get divested. We may have to work late in the night to complete the task given to us. I seek the cooperation of one and all.”
Talace Pvt Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd, last year won the bid to acquire 100 percent equity shareholding of Government of India in Air India along with equity shareholding of Air India in AIXL and Air India SATS Airport Services Private Limited.
The Group is planning to continue with Vistara as a separate entity for a time being, as SIA is not on board for the AI deal. Vistara is a 51:49 joint venture between the Tata Group and SIA. SIA, however, had agreed to be part of the plan to acquire Air India but did not want to continue after COVID impacted their business and funds dried up.
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