Air India, the national carrier, is all set to return home to the Tata Group on Thursday. The government had in October last year, inked the share purchase agreement with the Tatas for Air India’s sale for Rs 18,000 crore.
The Tata Group is expected to take full control of the airline it originally founded in 1932 after 67 years. The Tata Group would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt. The cash component of the deal would come once the handover process is completed.
Air India's handover was earlier expected to complete in December 2021 but the deadline was extended till January 2022 due to the long time taken to complete procedural work.
As Air India returns home to Tatas, here’s a look at what happens after the handover
What changes with the takeover of Air India by Tata group -
-Enhanced meal menu for some flights, to be expanded later
-Enhanced meal menu to start with Delhi-Mumbai, Mumbai-Abu Dhabi sector
-Special recorded message from Tata Sons Chairman Emeritus Ratan Tata on flights likely
-Changes in in-flight announcements, cabin crew grooming SOP
-Initial focus to be on improving customer experience
-Efforts to be made to improve on-time performance of the airline
What stays the same -
-Some Air India senior executives may continue until replacements hired
-Revamping aircraft interiors, fleet to take time
-Clarity is pending on how Tata group will structure their airline business. It must be noted AirAsia India and Vistara airlines are already under Tata group.