Air India Express will begin flying between Indore and Sharjah from March 27, 2022, according to Aviation Minister Jyotiraditya Scindia.
The Centre announced on October 8 that Tata Sons’ Talace Private Limited, a subsidiary of Tata Sons, won the bid to buy Air India and its subsidiary Air India Express. In the early half of 2022, Air India is expected to be handed over to Talace.
Scindia views the new flight schedule between Indore and Sharjah as a vital step in connecting Madhya Pradesh with the world. He congratulated the people of Madhya Pradesh.
Competition Commission approves Tatas acquisition of Air India, two subsidiaries
Meanwhile, the Competition Commission has authorised the proposed acquisition of debt-ridden Air India and its two subsidiaries by Tata Group. According to an official release issued, the Competition Commission of India (CCI) has authorised Talace’s acquisition of shares in Air India, Air India Express, and AISATS. It would acquire 100% shares in Air India Ltd and Air India Express Ltd and a 50% stake in Air India SATS Airport Services Pvt Ltd (AISATS).
Deals above a specific level must be approved by the CCI, which is responsible for ensuring fair competition in the market. The shareholder’s agreement was signed in November. The government is closing all the conditions precedent, and by the New Year, Air India will be transferred to its new owners.
AISATS provides ground handling services at the airports of Delhi, Bengaluru, Hyderabad, Mangalore, and Thiruvananthapuram. According to the press statement, it also includes cargo handling services at Bengaluru airport.
Air India, the state-owned airline, has lost more than Rs 600 crore per month. According to Civil Aviation Minister Jyotiraditya Scindia, the deal is a win-win.
Air India had a total debt of Rs 61,562 crore as August 31. Talace would receive Rs 15,300 crore of the deal, while AIAHL will receive Rs 46,262 crore. The Rs 18,000 crore transaction, which includes Talace taking over Rs 15,300 crore in debt, is a huge step forward in the government’s efforts to rehabilitate the troubled airline over the years.
Prime Minister Narendra Modi said that the decision on Air India would breathe fresh life into the country’s aviation sector.
In 2019, the government established Air India Assets Holding Ltd (AIAHL) as a particular purpose vehicle to hold the Air India group’s debt and non-core assets.