TATA SONS IS THE NEW OWNER OF AIR INDIA. (FULL CASE STUDY)

TATA sons has won the final bid for acquiring national carrier Air India , according to government sources.

The salt - to - software conglomerate had submitted the final bid for the airline on September 15 and emerged as the frontrunner to acquire the airline.

While Spicejet promoter Ajay singh had also submitted a bid for the airline , government sources have confirmed that Tata Sons submitted a higher offer for acquiring the airline.

Sources said that ministerial panel led by union Home Minister Amit Shah approved the bid submitted by Tata Sons.

Sources indicated that the bid submitted by Tata Sons was RS 3000 crore more than the minimum reserve price set by the government committee.

PRIVATISATION OF AIR INDIA 

In June 2019 , the centre announced the disinvestment of the debt - ridden Air India.

Then - civil Aviation minister Hardeep singh Puri had blamed volatile crude oil prices & adverse fluctuation in exchange rates for making it impossible to procced with disinvestment.

The bid latter got delayed with the onset of COVID , running the air craft industry into deeper debt.

SIGNIFICANCE FOR TATA 

For Tata sons , which already operates Vistara in tie - up with Singapore Airline and has a stake in Air Asia India operation , a winning bid for Air India would be significant for historical reasons.

Air India was founded by J.R.D. Tata and he was the first Indian to procure a flying license in 1929

TROUBLE IN AIRLINE SECTOR

One of the question being asked is how Tata will be able to manage a loss - making airline like Air India at a time when the aviation business is one of its biggest crises ever because of COVID - 19.

Moreover , both the airline partnership that the Tata have got into are going through their own period of turbulence , so adding another airline ti it can add to the burden.

FUTURE PLANS FOR AIR INDIA

While the specifics of the bid submitted by Tata is not yet completed. it is believed to include an indemnity clause to prevent any unexcepted claims that arise later.

More than 200 Tata Group personnel have been involved in the process , including M&G specialists from units such as Vistara , Air Asia India , Tata steel and Indian Hostels.

It may be noted that the Tatas are planning to merge all their airline business under one entity if it successfully bids for air India.