Tata Group officially takes over Air India

Tata group has officially taken over Air India from the government on Thursday. “Formalities have been completed. Air India disinvestment transaction is closed. Rs 2,700 crore has been received by the government. The shares have been transferred to Talace, the new owner. Consideration amount has been received. The debt of Rs 1,53,00 crore has been accepted by the new owner.” Tuhin Kanta Pande, secretary of the department of investment and public asset management said. "We are totally delighted to have Air india back at the Tata group," Tata Sons Chairman N Chandrasekaran said.

Chandrasekharan also met Prime Minister Narendra Modi ahead of the official handover. The government has notified the agreement between Air India and special purpose vehicle AIAHL for the transfer of non-core assets. 

In October last year, the government had sold Air India to Talace Private Limited -- a subsidiary of the Tata group's holding company -- for Rs 18,000 crore. As a part of the deal, the Tata group will also be handed over Air India Express and a 50 per cent stake in ground handling arm Air India SATS.The Tata Group issued a statement acknowledging PM Modi's commitment to reforms and faith in India's entrepreneurship spirit, which made this historic transition possible. "Our Prime Minister has in action demonstrated what his commitment to minimum government, maximum governance means."

While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tata Group's stable -- it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. Tatas had set up Tata Airlines in 1932, which was later -- in 1946 -- renamed as Air India. The government had taken control of the airline in 1953, but JRD Tata continued to be its chairman till 1977. The handover will be the homecoming of Air India to Tatas after 67 years.