May 19, 2022

Great Indian Mutiny

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Air India sold into government after 69 years | Economy

Airlines After being nationalized by the Indian government in the 1950s it returned to the hands of its founders.

Tata, a large family group ranging from tea to computer software, iron and automobile manufacturing, has returned to the helm of Air India after concluding a contract worth 180 billion rupees ($ 2.4 billion) in October.

As on August 31, 2021, the company had accumulated debt of Rs 615.620 crore.

Under the agreement signed in October, Tata will repay a quarter of the loan, i.e. Rs. Agreed to take Rs 153,000 crore and the rest will be transferred to a specific law firm.

For Tata, the acquisition is part of an ambitious plan.

Indian airline Vistara holds 51% – Singapore Airlines the remaining 49% – and AirAsia India 84%.

In January 2020, after the failure of the first privatization attempt, the Indian government announced that it was looking for a buyer for the airline due to poor financial condition.

Since 2009, the state has spent nearly $ 15 billion to support the company, which has been battling competition from Gulf airlines and low-cost airlines.

Air India has about 120 flights, with 4,400 weekly flights at domestic airports and 1,800 flights overseas. The airline operates 50% of its international flights from India.

Air India, formerly known as Tata Air, was established in 1932. The government nationalized it in the 1950s.

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