Adding to its fleet, Tata Sons defeats SpiceJet and acquires debt-burdened Indian National Carrier, Air India for a whopping $2.39 Billion.
Tata Sons Private Limited, a holding company of Tata Group recently won the bid and has successfully acquired Air India for $2.39 Billion. The Tata Group’s airline business has added Air India to its already owned collection of airlines including Vistara and AirAsia airlines. Tata Sons has won the bid, defeating Ajay Singh, Founder of SpiceJet whose last bid amounted to INR 15, 000 Crore.
The Indian National Carrier is anticipated to receive around 4,400 domestic and 1,800 international landing and parking slots at domestic airports. In addition to that, the recently attained airlines by Tata Sons may get over 900 parking and landing slots in international airports globally.
The Indian National Carrier, Air India’s auction is following the government’s long-term plans to privatize the debt-laden airlines. Evidently, Air India had been struggling financially, unable to cope with the emerging standards and scaling competitions for over 15 years.
On acquiring Air India, Ratan Tata, former Chairman of Tata Sons said’ “Welcome back, Air India”.