On January 27, the national government plans to take Air India to the Tata group. The transfer will bring the disinvestment process to a close months after the transaction is finalised.
The Tata group has already received Air India’s closing financial sheet as of January 20, and any revisions must be submitted by Wednesday. Following the completion of the procedure, the airline would be transferred shortly after Republic Day.
It should be mentioned that the whole ownership of Air India will be transferred to Talace Private Limited, a wholly-owned subsidiary of Tata Sons.
What happens after Air India’s handover to the Tata group?
The transfer of Air India from the government to the Tata group is unlikely to have a significant impact on operations, at least for the first few months. While there may be some minor adjustments, no substantial modifications are expected for a few months. Changes in personnel or flying operations are examples of this.
Customers will be unaffected as well since there will be no changes in flight operations following the transfer. The only modifications that passengers are likely to notice are those relating to branding on the interior and exterior of the aircraft.
However, Tatas’ decision to operate the airline might alter in the long term. According to previous reports, the Tata company is trying to consolidate all of its aviation operations under a single entity.
As part of the agreement, the Tata group would receive complete control of Air India and Air India Express; it already holds a majority position in AirAsia and Vistara.
There is a likelihood that the firm would consider integrating all of its airline companies, allowing it to save money and generate more income overall. More clarification on the subject can be expected from the airline’s new management following the transfer.