After 68 years, Tatas win back Air India with Rupees 18,000 cr. bid

• Integrity Education, Delhi
• 09, Oct 2021

• Tata Sons subsidiary Talace Pvt. Ltd. emerged as the winning bidder for the debt laden national carrier after quoting an enterprise value of Rupees 18,000 crore.
• The Tatas will own a 100% stake in Air India, as also 100% in its international low cost arm Air India Express and 50% in the ground handling joint venture, Air India SATS.
• Apart from 141 aircraft and access to a network of 173 destinations, including 55 international ones, Tatas will also have the ownership of iconic brands such as Air India, Indian Airlines and the Maharajah.

History of Air India
Early years (1932–1945)

• Air India had its origin as Tata Air Services later renamed to Tata Airlines[11] founded by J. R. D. Tata of Tata Sons
• In April 1932, Tata won a contract to carry mail for Imperial Airways and the aviation department of Tata Sons was formed with two single-engine de Havilland Puss Moths.
•  Initial service included weekly airmail service between Karachi and Madras via Ahmedabad and Bombay. 
• The airline launched its first domestic flight from Bombay to Trivandrum with a six-seater Miles Merlin.

Post-independence (1947–2000)

• After World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India
•  After Indian independence in 1947, 49% of the airline was acquired by the Government of India in 1948
• In 1953, the Government of India passed the Air Corporations Act and purchased a majority stake in the carrier from Tata Sons though its founder J. R. D. Tata would continue as Chairman till 1977.
• The company was renamed as Air India International Limited and the domestic services were transferred to Indian Airlines as a part of a restructuring

Post-liberalisation (since 2000)

• In May 2004, Air India launched a wholly owned low cost subsidiary called Air-India Express connecting cities in India with the Middle East and Southeast Asia.
• Until 2007, Air India mainly operated on international long-haul routes while Indian Airlines operated on domestic and international short-haul routes.
• In 2007, Air India and Indian Airlines were merged under Air India Limited
• Air India became the 27th member of Star Alliance on 11 July 2014
• On 28 June 2017, the Government of India approved the privatisation of Air India.