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On January 27, nearly 69 years after it was stolen from the Tata Group, the Indian government is expected to give over Air India to the conglomerate. According to sources, Air India flights would no longer be operated under the Tata Group's flag as of today.
According to sources, the Tata Group has made its first step at Air India by delivering "improved lunch service" on four flights departing from Mumbai on January 27. On January 27, four flights - AI864 (Mumbai-Delhi), AI687 (Mumbai-Delhi), AI945 (Mumbai-Abu Dhabi), and AI639 (Mumbai-Bengaluru) - would provide the "enhanced meal service."
On Friday, they said, the "enhanced meal service" will be served on the Mumbai-Newark route and five Mumbai-Delhi flights. According to the executives, the food service, which was created by Tata Group officials, would be expanded to other aircraft in a staggered and staged manner.
Nearly 69 years after it was stolen from the Tata Group, the Indian government is expected to hand over Air India to the conglomerate. The government sold Air India to Talace Private Limited, a subsidiary of the Tata Group's parent firm, for Rs 18,000 crore on October 8, last year, following a competitive bidding process. Employees will be informed of the new date on which all Air India flights will fly under the "Tata Group's banner or aegis," according to officials.
As a part of the deal, the Tata group will also be handed over Air India Express and a 50 percent stake in ground handling arm Air India SATS. Tata had on October 8 beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 percent stake in the loss-making carrier. While this will be the Centre's first privatization since 2003-04, Air India will be the third airline brand in the Tatas' stable as it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.
The Tata company will also receive Air India Express and a 50% share in the ground handling subsidiary Air India SATS as part of the deal. Tata had beaten a consortium led by SpiceJet promoter Ajay Singh's Rs 15,100 crore offer and the government's reserve price of Rs 12,906 crore for the sale of its 100 percent interest in the loss-making carrier on October 8. While this will be the government's first privatisation since 2003-04, the Tatas already own a majority stake in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. Air India will be the third airline brand in the Tatas' stable.