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<ul><li>The <keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword> has shown interest in acquiring the assets of the now bankrupt <keyword id="6358200" type="ORGANIZATION" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> as well as <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword> in the past. </li><li>State-owned Air India might also be on the block as soon as October this year. </li><li>Both airlines have something to offer to Tatas, while posing some serious challenges. </li></ul>It is not every day that an acquirer gets to choose between two country’s largest airline companies to acquire. But the country’s oldest business house, Tata Group is in that lucky position. Two top airlines are on the block--one of them is the bankrupt Jet Airways and loss-making Air India. Both of them present a unique opportunity to the Tata Group who already have interests in two airlines. They own domestic carrier Vistara which was launched in 2015, and have controlling stake in AirAsia India. Not the best Yet, this is not enough for the group which has flagship companies in every sector like TCS which is IT service leader, Trent which is a top retailer. In January, the combined number of passengers that they flew over 1.1 million passengers with a combined market share of 8%. However, the leaders are someone else. IndiGo was the undisputed leader in the market with a 40% share, in times when Jet was still flying. For Tatas to become one of the big players, it needs a push. Much bigger than the funds they are infusing into Vistara, which they own along with Singapore Airlines. This April, it had infused ₹900 crore into the company so that it could buy more aircraft. Vistara’s chairman Bhaskar Bhat had <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/vistara-will-continue-to-develop-its-network-in-india-abroad-mum-on-tata-groups-stand-on-jet-bhaskar-bhat/articleshow/68881116.cms?from=mdr">then also said </a>that it will concentrate on acquiring flying slots and aircraft, as he refused to comment on why they did not put in an expression of interest (EoI) called for Jet Airways lenders. Yet, the rumours of Tata’s interest in ‘acquiring’ an airline refuse to die down. After Jet went into bankruptcy,<a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/with-jet-in-nclt-hangar-assets-on-tata-radar/articleshow/70017183.cms"> reports said</a> that their interest is renewed. And that they’re interested in Jet’s international flying rights and aircraft, as they see no ‘value’ in buying the company right away. Budget Bonanza This changed status of Jet also goes with Vistara’s plans to expanding fleet and slots. But the Budget changed the game yet again. The Finance Minister Nirmala Sitharaman said that they will revive divestment of 100% stake in Air India. Later, reports said that this might happen in the next few months, which could be on the back of the fact that the airline is scrambling to pay salaries month after month. Tatas have a long-standing connection with Air India. For one, the airline was started by its legendary group head J R D Tata. It was nationalised during the Second World War, and taken over by the government in a pre-independence era. Sentiments aside, gaining control on the top airline which has a market share of 12.8% (which might have increased after Jet was grounded), can propel Tatas close to the second slot, and will be able to compete with IndiGo. Air India however comes with a massive debt of over ₹29,400 crore, some part of it could pass it on to the buyer. Jet’s debt is much lower at around ₹8,500 crore. But there are benefits that a ‘big player’ can bring. “In our view, Jet’s cessation of services has left a void in the full-service offering,” said a report by Citi commenting on relaxation of FDI norms in the aviation industry in the Budget. And, a big move might help Tatas soar to new heights in the sector.

The Tata Group has two airlines and two more to choose from—Air India and Jet Airways

<keyword id="2573" type="CITY" weightage="100" keywordseo="Air-India">Air India</keyword> Chairman and Managing Director Ashwani Lohani today said the management was doing everything to revive the national carrier and talks of privatisation do not have any impact on its expansion plans, according to PTI news report."We are doing all that is needed to financially revive Air India. We are going to launch new domestic and international flights and for this recruitment is on," Lohani said speaking to reporters here."But we have inherited a heavy burden of debt (Rs 50,000 crore)... . Besides, there are issues related to amalgamation of Air India and <keyword id="1446" type="CITY" weightage="20" keywordseo="indian-airlines">Indian Airlines</keyword>," he added.He refused to comment on possibility of privatisation of the national carrier and <keyword id="8555" type="CITY" weightage="20" keywordseo="Tata">Tata</keyword> group buying a stake."I won't comment on the issue of Air India's disinvestment. It is government's domain, not mine," he said.Lohani, however, denied that privatisation talk had dealt a setback to the airline's expansion plans."Our expansion plans are unhindered. Twenty-five big and small aircraft will be inducted in the next couple of months. Our situation is improving with every passing year. Negative coverage (in media) is on decline," he said.Lohani said Air India was going to launch flights from Delhi to Washington, Stockholm and Copenhagen in coming months."Besides, we want to introduce flights to Los Angeles, African countries and some other cities," he added.Flight delays had decreased drastically, he claimed, adding that the airline was working on a plan to hire 300 to 400 pilots and 600-700 cabin crew.Ten small 72-seater aircraft manufactured by the French firm ATR will join the Air India's fleet shortly which will give a boost to the domestic air service to smaller cities, he said. The public carrier also had plans to connect Indore with Ahmedabad and Jaipur from August-September, Lohani said.

Air India's expansion plan has nothing do with privatisation, assures Ashwani Lohani

<keyword id="8555" type="General" weightage="20" keywordseo="tata" source="Orion">Tata</keyword> Group’s takeover of loss-making national carrier <keyword id="2573" type="General" weightage="20" keywordseo="air-india" source="Orion">Air India</keyword> is most likely delayed by a month till January as the completion of procedures taking longer than expected, an official said on Monday. In October, the government accepted the highest bid made by a Tata Sons company for 100 per cent equity shares of Air India and Air India Express along with its 50 per cent stake in ground-handling company AISATS — the first privatisation in 20 years. At that time, the government had stated that it wanted to complete the transactions, which included Tatas paying Rs 2,700 crore in cash, by December end. As per the conditions in SPA, all formalities of handover would have to be completed within 8 weeks, but this date can be mutually extended by the buyer and seller and is being done in this case. However, some regulatory approvals are yet to come in for the handover, and certain formalities are yet to be completed, the official, who wished not to be named, told PTI. “The process would be completed by January,” he said without giving a specific date. On October 25, the government had signed the share purchase agreement with Tata Sons for the sale of national carrier Air India for Rs 18,000 crore. Tata’s would pay Rs 2,700 crore cash and takeover Rs 15,300 crore of the airline’s debt. The cash component would come once the handover process is completed, another official explained. Tatas beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier. As of August 31, Air India had a total debt of Rs 61,562 crore. 75 per cent of this debt or Rs 46,262 crore will be transferred to a special purpose vehicle AIAHL before handing over the loss-making airline to Tata Group. Tatas will not get to retain non-core assets, such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi. Of the 141 Air India aircraft that Tatas will get, 42 are leased planes, while the remaining 99 are owned. While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tatas’ stable – it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. Tata’s acquisition of Air India will give it access to a fleet of 117 wide-body and narrow-body aircraft, and Air India Express Ltd another 24 narrow-body aircraft besides control of 4,400 domestic and 1,800 international landing, and parking slots at domestic airports. Air India started suffering losses every year since its merger with Indian Airlines in 2007-08. A Turnaround Plan (TAP) and a Financial Restructuring Plan (FRP) were approved for Air India by the previous UPA regime in 2012. However, the TAP did not work out, and Air India continued to reel under losses, with the government giving Rs 20 crore per day to keep the airline afloat. Over the last decade, more than Rs 1.10 lakh crore was infused by way of cash support and loan guarantees in the loss-making airline to keep it afloat. SEE ALSO <a href="https://www.businessinsider.in/finance/banks/news/rbl-bank-depositors-need-not-worry-assures-rbi/articleshow/88520325.cms">RBL Bank depositors need not worry, assures RBI</a> <a href="https://www.businessinsider.in/tech/news/apple-reportedly-hires-metas-communications-lead-for-its-augmented-reality-products/articleshow/88516091.cms">Apple reportedly hires Meta's AR communications lead for marketing of its unannounced AR/VR headset</a> <a href="https://www.businessinsider.in/stock-market/news/rbl-bank-slumps-15-after-ceo-goes-on-leave-big-investors-are-eyeing-a-piece-of-the-pie/articleshow/88515146.cms">RBL Bank slumps 20% after CEO goes on leave</a>

Air India handover to Tata Group delayed further

Two aborted missions, three different ministers, multiple rule changes and two decades later, Indian taxpayers will no longer have to pay ₹20 crore per day to keep the loss-making <keyword id="2573" type="General" weightage="100" keywordseo="air-india" source="Orion">Air India</keyword> flying. While opposition Congress expectedly attacked the decision as selling the family silver, DIPAM Secretary Tuhin Kanta Pandey said what Tata is getting is not a cash cow but an airline which is bleeding where money needs to be pumped in to refurbish obsolete aircraft and dust up strangled ones while being unable to touch any employee for one year and only be able to resize staff after paying a VRS. "It won't be a very easy task there. Only advantage is they (new Air <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> owner) are paying the price which they think they can manage. They are not taking the excessive debt accumulated to fund years of losses. We are continuing it as an ongoing concern.... This process has also saved huge amount of taxpayers money going forward," Pandey told PTI. Earlier this month, the government had accepted an offer by Talace Pvt Ltd, a unit of the holding company of salt-to-software conglomerate Tata group, to pay ₹2,700 crore cash and takeover ₹15,300 crore of the airline's debt. As on August 31, Air India had a total debt of ₹61,562 crore. About 75 per cent of this debt or ₹46,262 crore will be transferred to a special purpose vehicle AIAHL before handing over the loss-making airline to the Tata Group. <keyword id="6360721" type="General" weightage="20" keywordseo="tatas" source="Orion">Tatas</keyword> would not get to retain non-core assets such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point in Mumbai, and Air India Building in New Delhi. "We have only allowed (Tata group) for use for two years, but within two years we have to work out a monetisation plan for it to be sold so that the money can be used to set off AIAHL liabilities," Pandey said. Of the 141 Air India aircraft that Tatas would get, 42 are leased planes while the remaining 99 are owned. Tata will also take over the capitalised lease liability on account of operating leases of Rs 9,185 crore. Besides, some of these 141 planes are grounded due to lack of engine and other maintenance. Also the obsolescence factor is there are many as not fuel efficient. "We want to finish the handover quickly, because we are paying Rs 20 cr /day to run the airline. The new owner will need to put in a lot of capital because they have to do capital expenditure to improve aircraft, refurbish and give new orders for obsolete aircraft. Only then they may be able to turnaround. Also conditions have been put that you cannot resize employees for 1 year, and thereafter in the second year, you have to give VRS," Pandey said. The government is divesting its 100 per cent ownership of Air India and Air India Express along with its 50 per cent stake in ground-handling company AISATS. The government will, however, transfer about Rs 16,000 crore of unpaid current liabilities, in excess of current and non current assets, such as fuel bills and other pending dues that Air India owes to suppliers, to Air India Assets Holding Ltd (AIAHL). A Letter of Intent (LoI) has been issued to Tatas on October 11 confirming the government's willingness to sell its 100 per cent stake in the airline. Tatas have now to accept the LoI, post which the Share Purchase Agreement (SPA) will be signed. Conditions precedent to the transactions would need to be satisfied by Tatas before they actually can take over the operations. Normally within 14 days of acceptance of LOI, the SPA is signed. While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tatas' stable - it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. Air India will give it access to a fleet of 117 wide-body and narrow-body aircraft and Air India Express Ltd another 24 narrow-body aircraft besides control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas such as London's Heathrow. Tatas beat the ₹15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of ₹12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier. Air India was first put on the block under the Atal Bihari Vajpayee government when the newly created disinvestment ministry led by <keyword id="47167" type="General" weightage="20" keywordseo="arun-shourie" source="Orion">Arun Shourie</keyword> offered 40 per cent of the government stake in the airline for sale. Foreign airlines, including Lufthansa, Swissair, Air France-Delta, British Airways, Emirates and Singapore Airlines (SIA) expressed interest in buying the airline but they pulled out after the government-mandated taking a local partner. Among the two domestic majors in fray, Hindujas, who were embroiled in the Bofors scam, was disqualified while Tata's partner, SIA, pulled out citing 'adverse climate and opposition to privatisation'. The privatisation plan was revived under Finance Minister <keyword id="42575" type="General" weightage="20" keywordseo="arun-jaitley" source="Orion">Arun Jaitley</keyword> in 2017 when the government offered for sale 74 per cent in the airline. But the decision of the government to hold 26 per cent in the airline and auction rules saw no bidder turning up. With 4 years of uncertainty over privatisation, Air India struggled with dipping employee morale and rising inefficiencies within the organisation. When <keyword id="6354642" type="General" weightage="20" keywordseo="modi" source="Orion">Modi</keyword> took over with a decisive mandate for the second time, Air India privatisation was revived in 2020, under current Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword>, with an offer to completely sell a 100 per cent stake. A new decision-making mechanism was worked out. The government sweetened the deal for Air India buyers, giving them flexibility to decide on the amount of Air India debt they want to absorb. The bids were invited on the enterprise value of the company, which includes debt as well as cash on the company's balance sheet. Air India started suffering losses every year since its merger with Indian Airlines in 2007-08. A Turnaround Plan (TAP) as well as a Financial Restructuring Plan (FRP) were approved for Air India by the previous UPA regime in 2012. However, the TAP did not work out and Air India continued to reel under losses with the government giving Rs 20 crore/day to keep the airline afloat. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/hdfc-bank-avenue-supermarts-hcl-tech-and-other-stocks-to-watch-out-for-on-october-18/slidelist/87098001.cms">HDFC Bank, Avenue Supermarts, HCL Tech and other stocks to watch out for on October 18</a>

'We want to finish the handover quickly, because we are paying ₹20 crore a day to run the airline,' says DIPAM Secretary on privatisation of Air India

<keyword id="2573" type="General" weightage="100" keywordseo="air-india" source="Orion">Air India</keyword> plans to hire more than 4,200 cabin crew and 900 pilots this year as the <keyword id="8555" type="General" weightage="80" keywordseo="tata" source="Orion">Tata</keyword> Group-owned airline expands its fleet and operations. The announcement comes close on the heels of the carrier placing an order to buy 470 aircraft from <keyword id="6357957" type="General" weightage="50" keywordseo="boeing" source="Orion">Boeing</keyword> and Airbus, including 70 wide-body planes. The airline, which was taken over by the <keyword id="6355725" type="General" weightage="80" keywordseo="tata-group" source="Orion">Tata Group</keyword> in January 2022, also plans to lease 36 aircraft and out of them, two B 777-200 LR have already been inducted. In a release on Friday, Air India said it "plans to hire over 4,200 cabin crew trainees and 900 pilots in 2023 as the airline adds new aircraft and rapidly expands its domestic and international operations". Between May 2022-February 2023, the airline hired more than 1,900 cabin crew. "Over 1,100 cabin crew have been trained in the last seven months (between July 2022-January 2023), and in the past three months, approximately 500 cabin crew have been released for flying by the airline," the release said. <keyword id="837472" type="General" weightage="50" keywordseo="sandeep-verma" source="Orion">Sandeep Verma</keyword>, Head - Inflight Services at Air India, said the addition of fresh talent will accelerate the pace of cultural transformation at the airline and added that it is also looking to step up hiring of more pilots and maintenance engineers. The cabin crew will undergo a 15-week programme to impart safety and service skills, and will be coached to exemplify the best of Indian hospitality and Tata group culture. The training programme will include extensive classroom and in-flight training at the airline's training facility in Mumbai as well as familiarisation flights, the release said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/nse-indices-launches-nifty-india-municipal-bond-index/articleshow/98207782.cms">NSE Indices launches Nifty India Municipal Bond Index</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/spicejet-net-profit-jumps-to-107-crore-in-q3-fy2023/articleshow/98208227.cms">SpiceJet net profit jumps to ₹107 crore in Q3 FY2023</a>

Air India to hire 5,100 cabin crew, pilots in 2023

<ul><li><keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword> Chairman N Chandrasekaran said he will get his team to evaluate a bid for <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword>. </li><li>The once-Tata owned Air India today has a massive debt of ₹58,351 crore. </li><li>Meanwhile, both of Tata’s current airlines – <keyword id="2467342" type="PERSON" weightage="20" keywordseo="Vistara">Vistara</keyword> and AirAsia – reported losses for FY19. </li></ul>One of India’s biggest business conglomerate Tata Group might consider bidding for the struggling Air India. In an <a href="https://timesofindia.indiatimes.com/business/india-business/will-ask-my-team-to-look-at-bidding-for-ai-tata-group-chief/articleshow/71883484.cms">interview with TOI</a>, Tata Group Chairman N Chandrasekaran said that he will get his team to look into the matter. “Ideally it should be a Vistara decision, not a Tata Sons decision. I’m not going to run a third airline (in addition to Vistara and AirAsia) unless we merge. There are issues. I will never say yes or no. I don’t know,” he told TOI. Interestingly, Air India was run by the Tata Group before the Indian government acquired a 49% stake in the airline in 1948. Tata Group to bid on Air India would expand its exposure to the airline industry. Two of its own airlines – Vistara and AirAsia are running in losses. In the financial year ending March 2019, Vistara’s<a href="https://www.business-standard.com/article/companies/vistara-loss-doubles-to-rs-831-crore-amid-tough-operating-environment-119081401877_1.html"> losses</a> doubled to ₹831 crore. Vistara is a joint venture between the Tata group and Singapore Airlines. Meanwhile, <keyword id="86568" type="COMPANY" weightage="20" keywordseo="Air-Asia">Air Asia</keyword> too is struggling to keep up. Its <a href="https://www.financialexpress.com/industry/air-asia-india-losses-rise-five-fold-in-fy19/1719013/">losses</a> amounted to ₹670 crore, almost five times over its losses in the previous year of ₹125 crore. Tata Group runs AirAsia India in a joint venture with Malaysia-based AirAsia Berhad. For FY19, Air India too posted a massive <a href="https://m.economictimes.com/industry/transportation/airlines-/-aviation/air-india-posts-rs-4600-cr-operating-loss-in-2018-19-aims-operating-profit-this-fiscal/articleshow/71136113.cms">operating loss</a> of ₹4,600 crore, while its net loss stood at ₹8,400 crore. Air India, which has been struggling to find a bidder after the government said that it plans to sell 100% stake in it. It has a massive debt of ₹58,351 crore and recently state-owned oil companies <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/pay-monthly-or-will-cut-fuel-supply-at-6-airports-from-oct-18-oil-companies-to-air-india/articleshow/71525811.cms?from=mdr">sent a letter</a> asking them to pay up dues or they will stop supplying aviation turbine fuel (ATF).

You Searched For "Tata buying Air India news" and got 6 results

The Tata Group has two airlines and two more to choose from—Air India and Jet Airways

Katya Naidu

Air India's expansion plan has nothing do with privatisation, assures Ashwani Lohani

BI India Bureau

Air India handover to Tata Group delayed further

PTI

'We want to finish the handover quickly, because we are paying ₹20 crore a day to run the airline,' says DIPAM Secretary on privatisation of Air India

PTI

Air India to hire 5,100 cabin crew, pilots in 2023

PTI

Tatas may look at bidding for Air India even as its two airlines strap on losses

Sanchita Dash

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