Lagatar24 Desk
New Delhi, Jan 27: After a long journey of 69 years, Air India is set to be officially handed over to Tata Group on Thursday.
The government sold Air India to Talace Private Limited, a subsidiary of the Tata Group’s parent firm, for Rs 18,000 crore on October 8, last year, following a competitive bidding process.
A formal announcement from the Tata Group regarding the official handover process will be made today.
Meanwhile, the Indian Pilots’ Guild (IPG) and the Indian Commercial Pilots’ Association (ICPA), two airline pilot unions, threatened Air India’s CMD Vikram Dev Dutt with legal action on Monday, citing “repeated deductions and recoveries” on dues owing to pilots.
“This recovery exercise is totally illegal,” the two unions said in their letter, “and we demand that this anomaly be addressed and the money due be refunded with immediate effect.”
Additionally, two other unions oppose the carrier’s January 20 directive to inspect cabin staff members’ grooming and assess their body mass index (BMI) at airports soon before their flights.
These unions, the Air India Employees’ Union (AIEU) and the All India Cabin Crew Association (AICCA), wrote to Dutt on Monday contesting the decision, claiming that it is dehumanizing and in breach of DGCA norms.
On October 8, three days after the sale of Air India was announced, the government submitted a Letter of Intent (LoI) to the Tata Group, indicating the government’s intent to sell its whole ownership in the airline. The Centre signed the share purchase agreement (SPA) for this sale on October 25.
Officials stated on Wednesday that the airline will most likely be handed over to the company on Thursday, pending the completion of all requirements.
The Tata Company will also receive Air India Express and a 50% share in the ground handling subsidiary Air India SATS as part of the deal.
While this will be the government’s first privatization since 2003-04, the Tatas already own a majority stake in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. Air India will be the third airline brand in the Tatas’ stable.
