Daily News Analysis

Sale of Air India

12th October, 2021 Economy

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Context

  • Tata Sons subsidiary Talace Pvt. Ltd. emerged as the winning bidder for the debt-laden national carrier after quoting an enterprise value of 718,000 crore.
  • The government will take a hit of 28,844 crore.

Details

  • The Tatas will own a 100% stake in Air India, as also 100% in its international low-cost arm Air India Express and 50% in the ground handling joint venture,Air India SATS.
  • Apart from 141 aircraft and access to a network of 173 destinations, including 55 international ones, Tatas will also have the ownership of iconic brands such as Air India, Indian Airlines and the MaharajahSpecial Category Status.