Air India now belongs to Tata Group. On Thursday, the Department of Investment and Public Asset Management (DIPAM) officially handed over the airlines to the Tata Group.
The strategic disinvestment transaction of the Airline was successful with transfer of 100% shares of Air India to Talace Private Limited along with management control.
Air India was originally launched by the Tata Groups in 1932. But later after the country’s independence it was nationalised in 1953.
Last year in the month of October the Tata Group placed a successful bid of Rs 18,000 crore to buy Air India, including taking on Rs 15,300 crore of the national carrier’s debt. Tata Group regained control of Air India after 69 years through its subsidiary company Talace Pvt Ltd.
Tata Sons chairman N Chandrasekaran expressed his happiness after the airline takeover process. He also mentioned that the Tata Group is very glad to have Air India back and they look forward to working with everyone in creating a world class airline.
On this special occasion the operations department ordered airline pilots to make a particular announcement on all their flights departing on Friday.
The Air India pilots on every flight read the following announcement:
“Dear Guests, this is your Captain (Name) speaking. Welcome aboard this historic flight, which marks a special event. Today, Air India officially becomes a part of the Tata Group again, after seven decades. We look forward to serving you on this and every Air India flight with renewed commitment and passion”.
Even the dairy giant Amul, expressed its dedication and won the hearts of the audience with their cute celebratory cartoons. They sketched a cartoon in which the Amul girl is dressed like a pilot sitting in the cockpit along with Tata Sons Chairman N Chandrasekaran in the co-pilot’s seat and the Maharaja showing respect. The tagline was “Tata rahe mera dil”.
Benefits to the country and employees
Since 2007, Air India has been in loss. According to the sources, its cumulative losses was around Rs. 78,953 and required taxpayer bailout every year to continue operations. Despite airlines making money, a loss of Rs 20 crore was incurred every day. But now the burden on the government’s finances seems to be reduced .
Over 10000 employees of Air India will not be retrenched for a period of one year from the closing date and will be eligible for VRS with maximum benefits in case of retrenchment in the second year of closing date. They will continue to get statutory benefits including provident fund (PF) and gratuity. Employees can stay in the residential colonies for a period of six-month from the closing date. The retired employees will continue to get medical benefits under CGHS and NHIS.
After privatisation the expectations for overall standard services have also increased. However Tata Group has to modify a lot of things related to the Airlines.
