Tatas will take Air India to new heights: Jyotiraditya Scindia

Union Minister for Civil Aviation Jyotiraditya Scindia said on Friday that he is confident that Tata Group will take Air India to new heights and the airline will boom under its new owners.

Speaking to India Today TV, he added that with Tata's infusion of challenges and resources, Air India will once again rule the high skies that it always has.

Also Read: Tatas will take Air India to new heights: Jyotiraditya Scindia

Exuding confidence in Tata Group's success, Scindia said, "Not only I, but the civil aviation fraternity and people of India at large all stand to gain from the culmination of the very very long process that has been in the process for years."

"I wish them all the very best, they have all the required talent and strategy element to make this a success...May they fly high," the civil aviation minister stated, congratulating Tata Group on officially acquiring Air India.

Scindia also hailed Prime Minister Narendra Modi-led government for its "initiative and determination". Lauding PM Modi for his resolve, he added that due to the latter's resolve the disinvestment process of Air India "has actually seen the light of the day."

"It's a testament to Prime Minister Narendra Modi's government and his initiative that the responsibility of the government is not be in business, but instead to create and environment for business to flourish," Scindia said.

Also Read: It's official! Air India now formally handed over to Tata Group

The civil aviation minister's comments came a day after the Tata Group took over Air India, around 69 years after the airline was taken from the Mumbai-based conglomerate.

The process of that national carrier's disinvestment got completed on Thursday, January 27, with the government officially handing over the management control of the airlines to Talace Private Limited, a subsidiary of the Tata Group's holding company.

After taking over the airlines, Tata Sons Chairman N Chandrasekaran, who met Prime Minister Narendra Modi earlier in the day said, "We are totally delighted to have Air India back at the Tata group and are committed to making this a world-class carrier."

After a competitive bidding process, the government had on October 8 last year sold Air India to Talace Private Limited, a subsidiary of the Tata Group's holding company, for Rs 18,000 crore.

As a part of the deal, the Tata group has also been handed over Air India Express and a 50 per cent stake in ground handling arm Air India SATS.

Tatas had beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier.

While this is the first privatisation since 2003-04, Air India is the third airline brand in the Tata Group's stable - it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.

Meanwhile, Tatas would not get to retain non-core assets such as the Vasant Vihar housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi.

At present, Air India controls over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots abroad. Out of Air India's 141 aircraft that Tatas would get, 42 are leased planes while the remaining 99 are owned.

Air India was started by the Tata Group in 1932 by JRD Tata. But, after the country's independence, the then government led by Prime Minister Jawaharlal Nehru had nationalised the airline in 1953.