Lagatar24 Desk
New Delhi, Jan 28: Jyotiraditya Scindia, the country’s civil aviation minister said on Friday that the Tata Group’s acquisition of Air India is a win-win situation for all parties involved, adding that the agreement represents a big quantum leap in the country’s aviation sector’s capabilities.
“It also sets in perspective a 69-year-old history which was started on the wrong step by the nationalization of an airline that actually belonged to the private sector, It is going back to the private sector,” Scindia said.
“We will have a player with tremendous capabilities for international and domestic traffic — a party that probably has a game plan and strategy to ensure the best value for our customers. It will be a win-win position for all stakeholders in this industry,” the Union minister added.
Scindia claimed that Air India has a running loss of Rs. 85,000 crore over the last 14 years, with daily losses of about Rs. 20 crore. “That government money, which is taxpayer money,” he continued, “may be spent in regions that demand social development and investment.”
Notably, the Tata Group reclaimed ownership of Air India on Thursday, nearly seven decades after losing it. The group promised to restore the Maharaja’s former glory.
Air India’s strategic disinvestment deal was concluded on Thursday, according to a statement from the Union finance ministry, with the Centre receiving a consideration of Rs 2,700 crore from Talace Pvt Ltd, a wholly owned subsidiary of Tata Sons.
The Tata Group won a competitive proposal from Air India for $18,000 crore in October 2021, which included a cash component of $2,700 crore.
