INDIA's salt-to-software conglomerate tata Group has taken the reins at Air India, finally sending some positive signals for the national airline.
The carrier is saddled with multiple challenges that have become even more daunting amid unpredictable Covid events, reports London's The Loadstar.
In October, Talace, a subsidiary of Tata Group holding arm Tata Sons, made the winning bid for the loss-making carrier after a long-contemplated privatisation strategy by the Indian government.
It said: 'The Air India strategic disinvestment transaction has been completed, with the government receiving a consideration of INR2,700 crore (US$365 million) from the strategic partner, retaining debt of INR15,300 crore (INR153 billion) in Air India and AIXL and transferring shares of Air India (100 per cent shares of Air India and its subsidiary Air India Express and 50 per cent shares of Air India SATS - ground handling venture) to the strategic partner.'
N Chandrasekaran, chairman of Tata Sons, said: 'We are committed to making this a world-class airline. I warmly welcome all the employees of Air India, Air India Express and AISATS to our group, and look forward to working together.'
Air India has become the third airline brand in the Tata stable; it already holds majority stakes in AirAsia India, a partnership with Malaysia's AirAsia Investment, and Vistara, a joint venture with Singapore Airlines.
Freight handling has been a key revenue source for Indian airlines in recent months after passenger traffic nosedived in the wake of Covid. Now the stage is set for Tata-led Air India 'to expand its reach into this segment' as domestic airports see significant cargo volume increases, fuelled by medical shipments and ocean capacity shortages.
According to industry data, the Bengaluru airport handled 406,688 metric tonnes of cargo last year, up 28.6 per cent over 2020. At Delhi Airport, 2021 volume shot up 27 per cent to some 930,000 metric tonnes.
The acquisition brings Tata a fleet of 141 aircraft - 99 owned and 42 leased - from Air India, of which 33 are widebodies (twelve 777s and twenty-one 787s). In addition, Air India controls more than 4,400 domestic and 1,800 international landing/parking slots across Indian airports, as well as 900 globally.
Meanwhile, private low-cost airline SpiceJet, facing an existential crisis, has won a temporary reprieve from the Indian Supreme Court, which has allowed a further three weeks for the airline to resolve its financial dispute with a Swiss aircraft maintenance firm.
'The Supreme Court stayed the Madras High Court order against SpiceJet to facilitate settlement between SpiceJet and Credit Suisse,' a SpiceJet spokesperson told The Loadstar. 'Both parties are already in advanced discussions to settle the matter.'
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The carrier is saddled with multiple challenges that have become even more daunting amid unpredictable Covid events, reports London's The Loadstar.
In October, Talace, a subsidiary of Tata Group holding arm Tata Sons, made the winning bid for the loss-making carrier after a long-contemplated privatisation strategy by the Indian government.
It said: 'The Air India strategic disinvestment transaction has been completed, with the government receiving a consideration of INR2,700 crore (US$365 million) from the strategic partner, retaining debt of INR15,300 crore (INR153 billion) in Air India and AIXL and transferring shares of Air India (100 per cent shares of Air India and its subsidiary Air India Express and 50 per cent shares of Air India SATS - ground handling venture) to the strategic partner.'
N Chandrasekaran, chairman of Tata Sons, said: 'We are committed to making this a world-class airline. I warmly welcome all the employees of Air India, Air India Express and AISATS to our group, and look forward to working together.'
Air India has become the third airline brand in the Tata stable; it already holds majority stakes in AirAsia India, a partnership with Malaysia's AirAsia Investment, and Vistara, a joint venture with Singapore Airlines.
Freight handling has been a key revenue source for Indian airlines in recent months after passenger traffic nosedived in the wake of Covid. Now the stage is set for Tata-led Air India 'to expand its reach into this segment' as domestic airports see significant cargo volume increases, fuelled by medical shipments and ocean capacity shortages.
According to industry data, the Bengaluru airport handled 406,688 metric tonnes of cargo last year, up 28.6 per cent over 2020. At Delhi Airport, 2021 volume shot up 27 per cent to some 930,000 metric tonnes.
The acquisition brings Tata a fleet of 141 aircraft - 99 owned and 42 leased - from Air India, of which 33 are widebodies (twelve 777s and twenty-one 787s). In addition, Air India controls more than 4,400 domestic and 1,800 international landing/parking slots across Indian airports, as well as 900 globally.
Meanwhile, private low-cost airline SpiceJet, facing an existential crisis, has won a temporary reprieve from the Indian Supreme Court, which has allowed a further three weeks for the airline to resolve its financial dispute with a Swiss aircraft maintenance firm.
'The Supreme Court stayed the Madras High Court order against SpiceJet to facilitate settlement between SpiceJet and Credit Suisse,' a SpiceJet spokesperson told The Loadstar. 'Both parties are already in advanced discussions to settle the matter.'
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