Ratan Tata thanked the government for opening up select industries to the private sector.
The Tata Group took over Air India again after 68 years, but this path will not be easy for them. Tata said in a statement, “Tata Group’s winning bid for Air India is great news.” That this will provide a strong market opportunity for the Tata Group’s presence in the aviation industry.”
The government on Friday said that the Special Purpose Vehicle (SPV) of Tata Sons has successfully made a successful bid to acquire Air India, overtaking SpiceJet promoter Ajay Singh-led conglomerate. With this Air India has gone back to Tata. The airline was founded by Tata. Later it was nationalised. Tata said, “…At one time under the leadership of JRD Tata, Air India had gained the reputation of being one of the most prestigious airlines in the world.” will get the opportunity which he had availed in the past. Tata said, “JRD Tata would have been very happy if he was among us today.” He thanked the government for opening up select industries to the private sector.
Welcome back, Air India 🛬🏠 pic.twitter.com/euIREDIzkV
— Ratan N. Tata (@RNTata2000) October 8, 2021
18 thousand crore deal
Tata Group has bought Air India for 18000 crores. Under this deal, she will repay the airline’s debt of Rs 15300 crore and the government will get Rs 2700 crore as cash. It is said that Tata Group executives used to complain that Jehangir Ratanji Dadabhai Tata (JRD), the father of Indian aviation and former chairman of Air India, was more concerned about Air India than the Tata group. However, he also knew that leading Air India as chairman was not just a job for him, but a matter of passion for him.
Two lakhs were spent in 1932
Given the grand legacy of the Tata group, which ranges from salt to software, it is no surprise that Tatas spent so much (Rs 18,000 crore) to get Air India back. This is a group that did not hesitate to invest two lakh rupees in 1932 to start Tata Aviation service before Tata Airlines and Air India.
First flight in October 1932
The first airmail service was flown from Karachi to Bombay in October 1932 when JRD Tata operated a Puss Moth aircraft. After 89 years, now the control of Air India is again in the hands of Tata Group. The journey of this group in Indian civil aviation history has been full of ups and downs.
First international flight to Europe
Tata Airlines went public in 1946 as a ‘joint stock company’ called Air India, and on June 8, 1948, independent India’s first public-private venture Air-India International had its first flight to Europe, with its iconic mascot as the Maharaja. Air-India International became one of the best airlines in the world with staff, maintenance and services. According to the group’s proposal in October 1947, the government’s stake in Air-India International was kept 49 percent, the Tatas 25 percent and the rest with the public.
Nationalization of Air India in 1953
When the then government of Jawaharlal Nehru nationalized Air India in 1953, JRD fought vigorously against it. When the government decided to nationalize 11 airlines, there was nothing the group could do. Of these, except Air India, all were incurring heavy losses and were merged into a single government corporation.
Was the head of Air India for 25 years
After the nationalization of Air India, the group’s association with the aviation sector was only through JRD, who served as the chairman of the premier state-run airline for 25 years. In the nineties, when India’s civil aviation sector was opened up to private partners, the group attempted to start a domestic airline in partnership with Singapore Airlines. But the government rejected his proposal.
1994 proposal was turned down
Significantly, in 1994, the Tata group led by Ratan Tata had set up a joint venture with Singapore Airlines to start a domestic airline in India, but this did not go ahead as foreign airlines were allowed to operate domestically as per the then rules. Holding stake in airlines was not allowed.
Expansion begins in November 2013
Also, in the year 2000, both the partners worked together to buy a stake in Air India, but success did not materialise. Nevertheless, the group never gave up their hopes of flying again. When India lifted foreign investment restrictions in 2012, the group came together again to form a joint venture – Tata SIA Airlines Limited with Singapore Airlines, which was renamed as a full-service domestic airline under the Vistara brand on 5 November 2013. was incorporated to operate the airline.
47 aircraft in the expansion fleet
Tata Sons, the promoter company of the Tata group, holds 51 per cent and Singapore Airlines 49 per cent in the airline. Its first flight was taken from Delhi to Mumbai on 9 January 2015. Since then it has spread its wings, with a fleet of 47 aircraft, serving over 200 flights daily to 40 destinations.
The Tata Group also operates AirAsia.
A year before the expansion took off, Tata entered the low-cost aviation space through a joint venture with Malaysia’s AirAsia to launch airlines under the AirAsia India brand. It made its first flight from Bangalore to Goa in June 2014. At present it operates flights from 17 places in the country.
Aviation industry in crisis
However, Air India’s homecoming will be a happy moment for the 153-year-old group. It now remains to be seen how the group plans the future of its airline business, at a time when the aviation industry is in dire straits due to the pandemic.
Also read, Share Market Updates: Investors got rich from Rs 4.16 lakh crore in the market for two days
Also read, Chief Economic Advisor KV Subramaniam resigns, know what is the work of Chief Economic Advisor