By bidding for Rs 18,000 crore, Tata Sons, the airline’s creator, has become the owner of the major loss-making state-run airline. Tata will have complete ownership of the corporation.
IN THE AUCTION, The Tata company won the auction against SpiceJet’s Ajay Singh-led consortium which had offered Rs 15,000 crore. The reserve price was fixed at 12906 crores by the government.
PROFIT GAINED BY RATAN TATA
Tata will own half of Air India SATS, the airline’s ground handling company, in addition to Air India and Air India Express. For this arrangement, Tata will only have to pay the government 15%, or Rs. 2700 crore.
The remaining 85 percent, or Rs. 15300 crores, will be subject to government tax. Air India’s current loss totals more than Rs.65562 crores. The airline was losing almost Rs 20 crore each day.
The remaining Rs 46,262 crore debt on the balance sheet, according to Pandey, will have to be carried by the state-owned AIAHL after the auction.
Air India now operates 4400 domestic flights.
In addition, it has 1800 landing and parking spots in other countries.
The government attempted to auction Air India as early as 2017, but the firms were not interested.
This is how it turned out
- Tata Airlines was founded in 1932 by Ratan Tata.
- In 1946, the enterprise was converted into a government corporation.
- Air India is nationalized in 1953.
- Exercising a road map for losses in 2009
- Package worth $500 million in 2012.
- Plan to sell shares in March 2018
- The government announced the transfer of a share to Tata Sons on October 8, 2021.
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