News Karnataka
Monday, April 22 2024
Business News

Talace of Tatas to get 141 aircraft, 8 brand logos, lucrative routes in Air India divestment

Photo Credit :

New Delhi: Tata Sons’ subsidiary Talace which emerged as the highest bidder for national carrier Air India will get  among other assets such as human resources get more 140 aircraft as well as 8 logos.

Accordingly, Talace quoted an enterprise value of Rs 18,000 crore for 100 per cent equity shareholding of Centre in Air India along with that of Air India Express and AISATS.

Consequent to the acquisition, the Tatas will own 100 per cent stake in Air India. Also 100 per cent in its subsidiary Air India Express. 50 per cent in the joint venture Air India SATS will also come to TATA.

Notably, Tata Sons will have two full service carriers — Vistara and Air India — along with two low cost airlines — Air India Express and Air Asia India — and a ground and cargo handling company AISATS.

In terms of fleet, Talace will get Air India’s 117 wide-body and narrow body aircrafts and Air India Express’s 24.

Air India owns a significant number of these aircrafts.

Talace will also get to operate these aircraft on over 4,000 domestic and 1,800 international routes.

“Air India provides a unique and attractive international footprint. More than 2/3rd of Air India’s consolidated revenues comes from international market,” Tata Group said.

“It is the number one player from India in the international market. It has a strong footprint across geographies like North America, Europe and Middle East with attractive slots and bilateral rights.”

Air India’s frequent flyer programme has more than three million members.

Besides, Talace will get a total talent pool of Air India and Air India Express. This stands at 13,500 including both permanent and contractual employees.

Furthermore, eight brand logos would be transferable to Talace which they have to retail for a period of five years.

In terms of financials, Rs 15,300 crore comes to the TATAs. The Centre will get the rest as the cash component.

Talace will also need to take care of the Rs 20 crore loss per day that the company suffers.

In addition, there is a three-year business continuity clause in the agreement.

Nonetheless, full operational control of the divested entities go to the Tatas.

On the other hand, non-core assets including land and building, valued at Rs 14,718 crore,are not covered in the deal.

According to N. Chandrasekaran, Chairman, Tata Sons: “At the Tata group, we are delighted to be declared as the winner of the bid for Air India. This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline.”

“It will be our endeavour to build a world-class airline which makes every Indian proud. On this occasion, I would like to pay tribute to J.R.D. Tata, pioneer of Indian aviation, whose memory we cherish.”

Share this:
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

To get the latest news on WhatsApp