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What did Ratan Tata get by buying Air India for 18000 crores?

What did Ratan Tata get by buying Air India for 18000 crores?

Tata King now at Delhi airport.

Eventually Maharaj returned home. Government approves Tata Group’s bid for Air India. 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. Tata Trust chief Ratan Tata tweeted and said, “Welcome back, Air India.”

After this deal, there will be mainly four companies in the airline sector. These companies will be Indigo, Tata Group Airlines, SpiceJet and GoFirst. According to OAG data, Delhi will be the largest airport in the country. Tata Group already operates two airlines AirAsia India and Vistara. Now he also has Air India and Air India Express. In this way, the total capacity of all the four airlines at Delhi airport became 40.17 percent. This is 3 per cent more than Indigo. In this way, IndiGo will now face a tough challenge in the domestic airline.

Air India’s full fleet will also be available

DIPAM Secretary Tuhin Kant Pandey said that under this deal, the Tata Group will have 100 per cent stake in Air India after the acquisition. Apart from this, 100 percent stake in Air India’s subsidiary company Air India Express and 50 percent stake in Air India SATS also went to Tata Group. Under this deal, Tata Group will also get the entire fleet of Air India. Air India will have 117 wide body aircraft and 24 narrow body aircraft in its fleet. Apart from this, he will also have ownership rights on Air India, Indian Airlines and Maharaja brand.

Weekly 2738 International Slots

There were many flaws with Air India, but its operation is excellent. Perhaps this is the reason why Tata showed great interest in this deal. In a week Air India had 4486 domestic slots and 2738 international slots. In the International slot, 358 are for West Asian countries (countries like Abu Dhabi, Dubai, Tel Aviv). 72 weekly slots are for US, Canada and cities like New York, San Francisco, Washington and Toronto. There are 74 weekly slots for England’s Heathrow, London’s Stansted and Birmingham.

Service at 98 Domestic Destination

Talking about the operation of Air India, it used to provide service to 98 destinations and 42 international destinations of the country. This data is as of 1 November 2019.

Also read, Air India sold, what will happen to employees’ jobs – salary and allowances? Know the answers to all the questions

Also read, Tata got Air India back, but it took 68 years to get it back; read full story

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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