Tata Airlines will soon touch the sky again

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The Aviation Industry is one of the biggest and most complex businesses to operate. This complex business which requires a huge amount of capital and manpower was established in India by Mr. JRD Tata. It was later, taken over by the Indian Government under the nationalization policy in 1953.

Decades of wait

After almost seven decades of wait, the Government of India announced a 100% stake sale of Air India in the year 2020. The race for the acquisition was between two bidders – Tata Group and SpiceJet. 

However, Tata Group won the bid on 08th October 2021, and the procedure for transfer of shares began. The amount was big, but Tata Group had some plans that made it possible for them to re-acquire their own company from the government. 

The government was facing frequent losses while running Air India for decades. The disinvestment was tried back in the year 2000 for a stake of 40 percent to raise funds. The bid received a negative response and no bidder came for investment. 

Later the Government of India offered a 100 percent stake with its debts that amounted to more than Indian Rupees 30 thousand crores. However, this time Tata Group was ready to regain their most awaited company back on the list. 

The Covid19 effect

We barely see any industry that has not suffered due to China’s created covid19 virus. The bid for Air India’s bid was facing issues due to the spread of covid19 and bidders turned their backs as no one was sure about the uncertainty of the virus. Later, the government received two bids by September 2021. 

Later in October 2021, the government announced the bid winner for Air India’s 100 percent stake as Tata’s Talace Private Limited. 

The Size

Air India has a fleet of 125 Aircrafts which consists of Airbus and Boeing planes. The numbers are till November 2021 and do not include the fleet of subsidiaries Air India Express and Alliance Air. 

Air India has its hub at Indira Gandhi International Airport, Delhi. And secondary hub at Chhatrapati Shivaji Maharaj International Airport, Mumbai. It takes flight to 102 destinations domestically and globally. 

The Moment of Joy 

Tata has created an image of reliability and trust amongst Indians in the last few decades. Tata Motors which is mainly in the business of manufacturing commercial and passenger vehicles has proved the credibility of Tata’s brand image.

Every Indian, who knows the importance of the Tata Group in India, cheered with joy when the bid was announced in the favor of the Tata group. Some groups have nothing to do with the company still celebrated as everyone knows what Tata is capable of. 

Saving Tax 

The government failed to manage the airline business successfully and was paying billions of rupees from tax payer’s money. It was a major burden on tax collection as the amount required to keep the airline alive was not an easy task. 

People shouting “the government is selling everything” must understand that the government has been appointed by us for administering nation, not running a successful business. 

Even we are responsible for the nation’s growth as we consider the government which we appoint to run the nation. Every decision taken by the government should be taken seriously by the responsible youth of our nation as they will be the leader in the field of business or their respective fields. 

– By Parag Ahire

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