Here Is Everything That Tatas Will Get From Air India Deal, And How It Will Affect AI Employees
With a bid of Rs 18,000 crore, the Tata Group has been confirmed as the new owners of Air India, the national carrier, that will now become a private airline.
As part of the deal, Tata Sons' subsidiary Talace which emerged as the highest bidder will get assets such as human resources. aircraft as well as logos.
Accordingly, Talace quoted an enterprise value of Rs 18,000 crore for 100 per cent equity shareholding of Centre in Air India along with that of Air India Express and AISATS.
Post the acquisition, Tatas will own 100 per cent stake in Air India as also 100 per cent in its subsidiary Air India Express and 50 per cent in the joint venture Air India SATS.
Air India Fleet
In terms of fleet, Tatas will get Air India's 117 wide-body and narrow body aircrafts and Air India Express's 24.
A significant number of these aircrafts are owned by Air India. It will also get to operate these aircraft on over 4,000 domestic and 1,800 international routes.
"Air India provides a unique and attractive international footprint. More than 2/3rd of Air India's consolidated revenues comes from international market," Tata Group said.
"It is the number one player from India in the international market having a strong footprint across geographies like North America, Europe and Middle East with attractive slots and bilateral rights."
Air India's frequent flyer programme has more than three million members.
Besides, the conglomerate will get a total talent pool of Air India and Air India Express which stands at 13,500 including both permanent and contractual employees.
Furthermore, eight brand logos would be transferable to the Tatas which they have to retail for a period of five years.
In terms of financials, Tatas will retain Rs 15,300 crore, while the rest will be paid to the Centre as the cash component.
Liabilities?
Tatas will also need to take care of the Rs 20 crore loss per day that the company suffers.
On the other hand, the transaction does not include non-core assets including land and building, valued at Rs 14,718 crore, which are to be transferred to GoI's Air India Asset Holding Limited (AIAHL).
Can give VRS after two years
As far as the future of Air India employees are concerned, the government said that Tata Sons, will retain all employees for one year and the group will need to offer a voluntary retirement scheme if it decides on retrenchment after the period.
"The winning bidder (Tata Sons) will retain all employees for the period of one year. In the second year, if they aren't retained, they will be offered VRS by the winning bidders," Rajiv Bansal, Secretary, Civil Aviation said.
He said gratuity, pension fund and post-retirement medical benefits will also be honoured by the winning bidders.
The government has said that the interest of the employees and retired employees would be taken care of in the disinvestment process.
The Air India Cabin Crew Association (AICCA) on Friday assured its support to Tata Sons Chairman Emeritus Ratan Tata and Tata Group Chairman N Chandrasekaran over winning the bid.
Congratulating Ratan Tata in a letter, AICCA said the association "Whilst assuring you of our support and cooperation, we look forward to having a meeting with you to pay our respects, and also with the core operational team that will lead Air India."?
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