Air India Back with Tata’s

Air India with 100% equity share will return to the Tatas after 68 years. Along with the brand and the slots of the debt-ridden state owned airline, the Tatas will get the low cost subsidiary Air India Express and a 50 per cent stake in ground handling firm Air India SATs Airport Services Private Limited  (AISATS ).

of the bid amount of Rs.18,ooo crore, the Tatas will pay Rs. 2,700 crore in cash, while taking the remaining Rs. 15,300 crore as debt.

The group will also have to pay around Rs. 9,185 crore on account of capitalized lease obligations of 42 leased aircraft, primarily the boeing 787 Dreamliner aircraft.

“While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata group’s presence in the aviation industry,” Ratan Tata said in a statement.

Rs. 18,000-CR Winning BID

Govt. reserve Pirce: Rs 12,906 cr

Tata Son’s bid: Rs. 18,000 cr

SpiceJet’s Ajay Singh bid: Rs.15,100 cr

Govt. to receive in cash: Rs.2,7oo cr

Al’s total debt burden: Rs.61,562 cr

To be borne by Tatas: Rs.15,300 cr

Air India Assets Holding Limited (AIAHL) to handle AI debt: Rs. 46,262 cr

ALAHL to get AI’s non-core assets: Rs.14,718 cr (not part of bid transaction)

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