As of August 31, Air India had a total debt of Rs 61,562 crore and 75 per cent of this debt or Rs 46,262 crore will be transferred to a special purpose vehicle AIAHL before handing over the loss-making airline to the Tata Group.
Earlier this month, the government had accepted an offer by Talace Pvt Ltd, a unit of the holding company of the salt-to-software conglomerate, to pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt.
Tata group has emerged as the winning bidder for Air India, and on October 11, a letter of intent (LoI) was issued to the group.
The airline's order stated that "procurement of new aircraft parts" and "procurement of non-aircraft parts" -- which are of more than Rs 10 lakh cost -- must be done after the approval of "Director Finance or Executive Director Finance".
Akasa Air, which is backed by former IndiGo president Aditya Ghosh, ace investor Rakesh Jhunjhunwala and former Jet Airways CEO Vinay Dube, got NOC from Civil Aviation Ministry on Monday.
Air India Unions have asked the ministry to intercede on behalf of the employees, and allow them to stay put in Air India colonies for at least one year.
Tata Group has several verticals, one of which tourism and travel houses the group's interest in Indian Hotels Company, Vistara and AirAsia India.
Air India Assets Holding Ltd (AIAHL), which will hold non-core assets of Air India such as land and building, will also be saddled with 75 per cent of the airline's debt that the Tata Group is not taking over.
On an emotional note, Air India under the leadership of JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world.
Tatas cannot transfer Air India brand, logo for 5 years, can transfer to only Indian person after 5 years.
The international service was among the first public-private partnerships in India, with govt holding 49 pc, the Tatas keeping 25 pc and the public owning the rest.
They say better late than never. For the Tatas, the original owners of Air India, bringing back the airline to its fold is worth the wait even if the attempt to privatise the bleeding national carrier by successive governments has taken over two decades. While many airlines have come and gone from the Indian skies since the time when the first move was made to privatise Air India to date, the salt-to-software conglomerate has never let the love affair with aviation, more so with Air India that its former Chairman Jehangir Ratanji Dadabhoy Tata (JRD) had, to go off the radar. Considering the respect for legacy that the group has, it is therefore not a surprise that the Tatas shelled out so much (Rs 18,000 crore) to take back Air India. This is a group that didn't mind investing Rs 2 lakh back then in 1932 to start Tata Aviation Service, the precursor of Tata Airlines and Air India.
Commerce and Industry Minister Piyush Goyal on Saturday said the government announced Air India as the final winner for Air India disinvestment bid. Tata Sons made the winning bid of Rs 18,000 cr for Air India, DIPAM Secretary said.
From the first airmail service flight from Karachi to Bombay in October 1932 with JRD steering a Puss Moth aircraft to wresting control of Air India 89 years later, the conglomerate has had a roller coaster ride in the Indian civil aviation history.
Tata Sons beat SpiceJet promoter to bag Air India. The DIPAM secretary said Tatas' bid of Rs 18,000 crore comprises taking over of 15,300 crore of debt and paying the rest in cash.
Earlier, the Centre evaluated financial bids received from Tata Group and SpiceJet founder for the acquisition of Air India.
"I have been in Dubai since...day before and I don't think there is any such decision that has happened at all," Piyush Goyal told reporters.
Tata Sons, the holding company of Indian multinational conglomerate Tata Group, has won the bid to take control of Air India, reports claimed.
The government on Wednesday said it has received multiple financial bids for buying national carrier Air India. Meanwhile, a Tata Sons spokesperson told PTI that it has put in a bid for the airline.
All passengers of the flight have been deplaned, the Raipur Airport Director said.
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