Customers to get best value, facilities, says Jyotiraditya Scindia on Air India disinvestment
Jan 28, 2022
New Delhi [India], January 28 : The sale of Air India to Tata Group would enable it in giving tremendous value to customers, including increased benefits and facilities, said Union Civil Aviation Minister Jyotiraditya Scindia on Friday.
"Handing over the airlines to a private sector will enable it to give tremendous value to its customers. With this disinvestment, the facilities for common people will increase," the Minister told ANI.
A day after Tata Group formally took over Air India, Jyotiraditya Scindia expressed best wishes to the giant conglomerate.
"I wish the Tata's all the very best. I am very confident that under their stewardship, Air India will once again reclaim the high skies that it always commanded," he said.
Terming the disinvestment as a representation of a "huge quantum jump" in the capabilities of the Civil Aviation sector, Scindia said that it will be a "win-win" situation for all stakeholders in this industry.
"We'll 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 customers," he said.
After 69 years of its nationalisation, Air India on Thursday formally became part of Tata Group, its founder. The government formally handed over the airline to Tata Group at a ceremony held in the national capital.
Earlier, the Union Finance Ministry in a statement had said, "The Air India strategic disinvestment transaction has been completed today with Government receiving a consideration of Rs 2,700 crore from the Strategic Partner (M/s Talace Pvt Ltd, a wholly-owned subsidiary of M/s Tata Sons Pvt Ltd), retaining debt of Rs 15,300 crore in Air India and AIXL and transferring shares of Air India (100 per cent shares of Air India and its subsidiary AIXL and 50 per cent shares of AISATS) to the Strategic Partner."
The transaction covers three entities - Air India, Air India Express and AI SATS. Air India is India's flag carrier and premier full-service airline. Air India Express is a low-cost carrier. AI SATS provides a comprehensive suite of ground handling and cargo handling services.
Last year, Talace Pvt Ltd, a wholly-owned subsidiary of Tata Sons Pvt Ltd, won the bid to acquire 100 per cent equity shareholding of Government of India in Air India along with equity shareholding of Air India in AIXL and Air India SATS Airport Services Private Limited for Rs 18,000 crore.
"It is pertinent to mention that following the Government's approval of the highest price bid of M/s Talace Pvt Ltd for strategic disinvestment of Air India, the Letter of Intent was issued to the winning bidder on October 11, 2021. The Share Purchase Agreement (SPA) was signed on October 25, 2021," the Finance Ministry statement said.
"Thereafter, Strategic Partner (M/s Talace Pvt Ltd), Air India and the Government worked towards satisfying a set of conditions precedent defined in the SPA including approvals from anti-trust bodies, regulators, lenders, third parties, etc. These conditions have since been met to mutual satisfaction," the ministry added.
