Page 23 - AAA SEPTEMBER-OCTOBER 2021 Online Magazine

significant number of these aircraft are owned
by Air India itself. “Air India provides a unique
and attractive international footprint. More
than 2/3rd of Air India’s consolidated revenues
come from the international market. It is the
Number One player from India in the interna-
tional market having a strong footprint across
geographies like North America, Europe, and
the Middle East with attractive slots & bilateral
rights. The Air India frequent flyer program has
more than 3 million members,” the Tata Group
said in a release following the announcement
of its successful bid for the airline.

“AT THE TATA GROUP, WE ARE
DELIGHTED TO BE DECLARED AS
THE WINNER OF THE BID FOR
AIR INDIA. THIS IS A HISTORIC
MOMENT, AND IT WILL BE A RARE
PRIVILEGE FOR OUR GROUP
TO OWN AND OPERATE THE
COUNTRY’S FLAG BEARER AIRLINE.
IT WILL BE OUR ENDEAVOUR TO
BUILD A WORLD-CLASS AIRLINE
THAT MAKES EVERY INDIAN
PROUD. ON THIS OCCASION, I
WOULD LIKE TO PAY TRIBUTE TO
JRD TATA, PIONEER OF INDIAN
AVIATION, WHOSE MEMORY WE
CHERISH,” N. Chandrasekaran, Chairman,
Tata Sons Pvt Ltd

Clean Slate
It was the Cabinet Committee on Economic
Affairs (CCEA) - empowered Air India Specific
Alternative Mechanism (AISAM) compris-
ing of India’s Minister for Home Affairs and
Cooperation Amit Shah; Minister for Finance &
Corporate Affairs Nirmala Sitharaman; Minister
for Commerce and Industry Piyush Goyal and
Civil Aviation Minister Jyotiraditya Scindia
which approved the highest price bid of Talace
Pvt Ltd, a wholly owned subsidiary of Tata Sons The only other bid for AI was from a consortium led by Ajay Singh,
Pvt. Ltd for sale of 100 per cent equity share- founder of the Indian Low Cost Carrier (LCC) SpiceJet, who bid for
holding of Government of India in Air India an EV of Rs 151 billion. Both the bids were above the reserve price
along with equity shareholding of Air India in of Rs 129 billion set by the Government. The successful disinvest-
Air India Express Limited and Air India SATS ment of Air India signals the exit of the Indian Government from the
Airport Services Private Limited (AISATS), airline business, ending efforts underway since June 2017 to find a
which is a 50:50 joint venture between AI and buyer for the ailing flag carrier. The Government’s first effort to find
SATS Limited, Singapore. The transaction does a buyer for AI did not elicit any Expression of Interest and the pro-
not include non-core assets including land and cess re-commenced on 27 January 2020 with issue of Preliminary
building, valued at Rs 147 billion, which are to Information Memorandum (PIM) and request for Expressions of
be transferred to GoI’s Air India Asset Holding Interest (EOI). The Government is to now issue a Letter of Intent
Limited (AIAHL). (LoI), following which it will sign the Share Purchase Agreement

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