Air India may be handed over to Tata Group by Thursday

 Air India may be handed over to Tata Group by Thursday

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Saurabh.Sinha@timesgroup.com

25.01.2022

New Delhi: Air India is all set to return to founder Tata Group either this week or next week. The handover could happen as early as Thursday (January 27) if the airline’s closing balance sheet as of January 20, 2022, supposed to be given to the Tatas on Monday, is accepted by them and they then make the upfront payment of ₹2,700 crore.

The date was conveyed to AI employees by the airline’s finance director Vinod Hejmadi. “The disinvestment of AI is now decided to be on January 27, 2022. The closing balance sheet (has to be) reviewed by Tatas and any changes can be effected on Wednesday…. 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,” Hejmadi, a board member and a key architect of this divestment, said in a mail to finance department staffers on Monday as they will be required to work in this week of holidays.

AI’s new owner to take over debt of ₹15,300 cr

Meanwhile, the board of AirAsia India (AAIPL), in which Tatas hold 83.7% stake and which will be merged with AI Express, met on Monday. Parallelly, the airline shareholders led by AAIPL chairman and Tata Group’s president of defence and aerospace are learnt to have made a presentation virtually to Tata Sons chairman N Chandrasekaran. The contents of this are not known. Air India and Vistara (51% owned by Tatas and 49% by Singapore Airline, or SIA) will continue to operate as separate full service carrier (FSC) till SIA agrees to have a merged FSC.

The Tatas have so far not commented on takeover preparations or plans for the airli- ne founded by JRD Tata 69 years ago. Unless there is a difference of opinion between the outgoing and incoming owners on the balance sheet that may require recalibrating the same, the Tatas will pay Rs 2,700 crore upfront and take over the airline. Apart from the upfront payment, the Rs 18,000-crore deal requires the new owner to take over AI’s debt of Rs 15,300 crore.

The Tatas have been assured 118 aircraft from Air India and AI Express’ combined fleet of 141 will be airworthy when they take over the Maharaja. The 23 grounded planes will need an expenditure of about Rs 1,800 crore on vital components and parts like engines that the new owner will need to incur.

Full report on www.toi.in