The Narendra Modi government today (Oct. 8) announced that Tata Sons had won the bidding process for Air India. The salt-to-software conglomerate will take back ownership of the carrier nearly after seven decades.
Of the seven expressions of interest received, five were disqualified, officials said today. Tata Sons offered 18,000 crore rupees ($2.35 billion) for the airline, beating their closest rival, SpiceJet’s Ajay Singh, who bid Rs15,000 crore.
The transaction will now be completed by December this year, officials said. Existing employees can’t be laid off for a year after the takeover, the government official said.
Founded by Tata Sons in 1932, Air India was nationalised by late prime minister Jawaharlal Nehru’s government in 1953. With its return to the old fold, aviation analysts believe it will now completely transform, owing to the Tatas’ “deep pockets, “returning to its “past glory.”
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