Tata Sons wins bid to buy Air India.
Tata and Air India Story: Tata Sons wins bid to buy Air India. That is, now the government airline Air India has become of Tata Sons. It took a total of 68 years for Air India to come back to Tata Sons. It was the year 1953, when the Government of India bought ownership of Air India from Tata Sons. In such a situation, it took a total of 68 years for Air India to come back to the Tata Group. Let us know its interesting story from the establishment of Air India.
was established in 1932
Air India was established in 1932 as Tata Air Services, which was later renamed as Tata Airlines. The airline was started by Indian business stalwart JRD Tata. In April 1932, Tata won a contract to carry mail for Imperial Airways. After this Tata Sons created its aviation department with two single engine aircraft. On 15 October 1932, Tata flew an air mail plane from Karachi to Bombay. The aircraft went to Madras, piloted by former Royal Force pilot Nevill Vintcent, who was also a friend of Tata. Initially, the company operated a weekly air mail service, which ran between Karachi and Madras, and via Ahmedabad and Bombay. In its next year, the airline flew 2,60,000 kms. In this, 155 passengers traveled in the first year and earned 9.72 tonnes of mail and a profit of Rs 60,000.
Tata Airlines renamed
The airline introduced its first domestic flight from Bombay to Trivandrum with the six-seater Miles Merlin. In the year 1938, its name was changed to Tata Airlines. In 1938, Colombo and Delhi were added to its destinations. During World War II, the airline helped the Royal Air Force with the movement of their troops, carrying supplies, rescuing refugees and maintaining aircraft.
Government took ownership in 1953
In 1953, the Indian government passed the Air Corporation Act, and bought ownership of the airline from Tata Sons. However, JRD Tata remained as chairman till 1977. The name of the company was changed to Air India International Limited.
Air India was renamed in 1962
On 21 February 1960, Air India International inducted its first Boeing 707-420 into the fleet. The airline started services to New York on 14 May 1960. The airline’s name was officially changed to Air India on 8 June 1962. And on 11 June 1962, Air India became the world’s first all jet airline.
In 2000, Air India started services to Shanghai, China. On 23 May 2001, the Ministry of Civil Aviation fixed the charge of corruption on the then Managing Director of the company, Michael Mascarenhas. In the year 2007, Air India and Indian Airlines were merged into Air India Limited.
Government approval for privatization in 2017
After this, in the year 2017, the Union Cabinet approved the privatization of Air India. In the year 2018, an attempt was made to sell Air India, which was unsuccessful. After its failed attempt, the government resumed the disinvestment process in January last year and its 100 per cent stake in the state-owned airline, including Air India’s 100 per cent stake in Air India Express Ltd and Air India SATS Airport Services Pvt Ltd. invited bids to sell 50 per cent equity in
Let us tell you that Air India has a total debt of Rs 38,366.39 crore. This amount comes after the airline transferred Rs 22,064 crore to the Special Purpose Vehicle (SPV) of Air India Assets Holding Limited.
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