Air India will become a Tata-owned company this week as the government has decided to hand over the company to the Tata Group on January 27, 2021.
“The disinvestment of Air india is now decided to be on the 27th January,2022. The closing balance sheet as on 20th Jan has to be provided today 24th Jan so that it can be reviewed by Tatas and any changes can be effected on Wednesday,” airline’s director finance Vinod Hejmadi said in an email to employees.
Seeking support from employees, he said, all of them have done an excellent job till now in providing all support for the disinvestment exercise.
“The next three days will be hectic for our department and I request all of you to give your best in these last three four days before we get divested. We may have to work late in the night to complete the task given to us.
I seek the cooperation of one and all,” it further read.
The Tata Group won a bid (through a holding company Talace) to buy 100% stake in Air India along with AI Express and 50% stake in ground handling company AISATS and the government has targeted to transfer to the before the end of this month.
Post the handover, the Tata Group is likely to operate three airlines – Air India, Air India Express and Vistara – after the government transfers the airline to the group and upon merger of AirAsia India and AI Express.
The Group, for the time being, plans to continue with Vistara as a separate entity, as SIA is not on board for the AI deal. Vistara is a 51:49 joint venture between the Tata Group and SIA. SIA, however, had agreed to be part of the plan to acquire Air India but did not want to continue after COVID impacted their business and funds dried up.
As part of the revival plan, the Tata Group is also blueprinting a 100-day plan for Air India to improve the operational and service standards of the airline that includes its on-time performance, as well as issues related to passenger complaints and call centres.
