Air India Sale: Wondering, who will take the charge of Maharaja? We are likely to have an answer by tomorrow. The Union Government has put an end to years of doldrums as it is likely to announce the winning bid for debt-laden national carrier Air India on Friday, says sources. There are multiple media reports that Air India is likely to return to its founder after 68 years of gap.
Bloomberg reported earlier that Tata Sons is likely to take charge of Maharaja and its humongous fleet by the year-end. However, the Union government clearly denied the media reports, calling them incorrect. Earlier, DIPAM Secretary tweeted, “Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect. Media will be informed of the Government decision as and when it is taken.”
Air India Returns
The Tata Group – Air India relationship went back to 1932. At that time, a legendary industrialist and India’s first commercially licensed pilot Jehangir Ratanji Dadabhoy (JRD) launched the national carrier. The airline expanded to passenger aircraft from national carriers and in 1938 it started flying overseas. The airline name was changed to Tata Air Services and later to Tata Airlines as Columbo was added to its list of destinations. During World War II in Burma, this legendary airline flew support missions for the British Royal Air Force. After World War finished, the airline changed its name to Air India. Just after this, the Union government showed interest in Air India and bought a 49 per cent stake in it. Under Air Corporations Act in 1953, the government took over the company from Tata Sons and nationalized it.
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In the year 2020, once again the Union government invited bids for strategic disinvestment of 100 per cent stake of the government of India in the airline considering the debt. Moreover, it includes a 100 per cent stake in Air India Express Ltd and a 50 per cent stake in Air India SATS. In the bid, four bidders came into action, but only Spicejet CEO Ajay Singh and Tata Sons finally remained at the forefront.
The provisional figures state that the airline recorded a net loss of Rs 3,836.78 crore in FY16, Rs 6,452.89 crore in FY17, Rs 5,348.18 crore in FY18, Rs 8,556.35 crore in FY19 and Rs 7,982.83 crore in FY20. The total debt of national carrier Air India has risen to around Rs 43,000 crore says, officials.
