N Chandrasekharan, Chairman of Tata Sons, met Prime Minister Narendra Modi on Thursday, prior to the official handover of Air India to the Tata Group.
The news: The official handover of Air India will be the first major successful privatisation deal in several decades. This also marks the return of Air India, which was founded in 1932 by former Tata Group chairman JRD Tata.
- Senior officials arrived at Air India’s headquarters in New Delhi as the chairman met with PM Modi. The current Air India board of directors will resign as a result of the final handover.
In addition: The Tata group has already planned the changes they intend to implement, and the first was implemented on Thursday in four flights departing from Mumbai.
- The Tata Group provided enhanced meal services on AI864 (Mumbai-Delhi), AI687 (Mumbai-Delhi), AI945 (Mumbai-Abu Dhabi), and AI639 flights (Mumbai-Bengaluru).
What happened: Tata Group won the bid to acquire the debt-ridden Air India, as well as Air India Express and a 50% stake in AISATS, in October 2021.
- An SBI-led consortium of lenders has agreed to provide loans to the Tata Group to ensure the smooth operation of the airlines.
- According to reports, the consortium includes all major lenders, including Punjab National Bank, Bank of Baroda, and Union Bank of India.
Air India had a total debt of 61,562 crore as of August 31. Before handing over the loss-making airline to Tata Group, approximately 75 per cent of this debt, or 46,262 crore, will be transferred to a special purpose vehicle AIAHL.