June 7, 2023

Great Indian Mutiny

Complete IndianNews World

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.

See also  India is investigating international links to the beheading of a tailor