Saudi Vice Minister of Defense Visits CENTCOM Headquarters    Saudi Minister of Education Meets with CEO of British Cultural Council    Russian diplomat resigns, says he's never been so ashamed of his country    SDAIA: Autonomous vehicles will be commercially available in world by 2030    Sheikh Al-Muajab meets with head of Eurojust Agency in The Hague    Ma'aden Enters Forbes 2000 List of World's Largest Public Companies    Misk Foundation Inaugurates Youth Council at the World Economic Forum    Tea Day event at Madinah university highlights diversity of traditions, cultural heritage    Sheikh Dr. Al Al-Sheikh, Sundberg call for spreading tolerance and dialogue    WEF unveils virtual global collaboration village as future of strong public-private cooperation    Prince Mohammed Bin Salman Nonprofit City appoints Dalkia EDF Group to implement sustainable solutions    Saudi minister: OPEC+ would increase production 'if demand is there'    Saudi student clubs in US hold graduation ceremony    MoH reveals information about monkeypox and ways to reduce its spread    Australia's new PM sworn in ahead of Quad meeting    UNHCR: Record 100 million people forcibly displaced worldwide    Manchester City clinches Premier League title on dramatic final day    How Syrian singer Rasha Rizk dazzled millennials at Jeddah Season?    King Salman Park begins construction on its Royal Arts Complex    Shoura members propose equal blood money for men and women, Muslim and non-Muslim    AMAALA Reveals Iconic New Yacht Club Designs    Arab League Renews Commitment to Enhancing Arab-African Cooperation    KSrelief Signs Agreement to Implement First Phase of Rehabilitating New Building of Mecca Medicine Eye Hospital in Omdurman, Sudan    KSrelief's Masam Project Dismantles 1,339 Mines within a Week in Yemen    British Investors Express Interest in Investing in Saudi Arabia's Food, Drug Market    Asian Shares Mixed    7 Die in Philippine Ferry Fire; over 120 Rescued from Water    Weather Forecast for Monday    Ithra Participates in Cannes Film Festival with New Films to Support Saudi Talents    Exclusive launching of Michael Schumacher Digital Experience at Jeddah F1 Grand Prix    MoH allows 6 categories to receive second booster dose    Mbappé signs new 3-year PSG deal after rejecting Real Madrid    Junaid, Tusif, Ashfaq, Rizwan, Furqan excel Butt Sport to clash with Center System Group in Ace Travel Saudi Cup final    Saudi Aramco: London Championship to Witness Participation of World's Best Female Golfers    Saudi woman finds out she is male after 20 years    Saudi Arabia Heads to Cannes International Film Festival to Promote Country's Flourishing Industry and Support Emerging Talent on World Stage    President of SAFF Participates in AFC General Assembly Meeting    Saudi Athletes Achieve Great Victories in the 2nd Day of the GCC Games Tournament in Kuwait    Jazan Hosts West Asian Beach Soccer Championship    Bollywood actor's tweet reignited debate over Hindi as India's national language    SFDA Advises to Wash Dates Well Before Eating    SFDA Advises Against Mixing Surplus of Iftar and Suhoor with Different Foods or Surplus from Other Days    Ministry calls on imams to avoid long supplications in Tahajjud Prayer    Nothing wrong with a Muslim celebrating birthdays, says Saudi scholar    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Tata Group takes over India's loss-making national carrier
Published in The Saudi Gazette on 27 - 01 - 2022

India's national carrier, Air India, has been officially handed over to the Tata Group, which bought the debt-ridden airline in October last year.
The Tatas paid nearly $2.4bn (£1.7bn) after the government made the terms of the debt less onerous for the buyer.
The salt-to-steel conglomerate founded the airline in 1932 before it was taken over by the government in 1953.
The handover brings to an end a years-long attempt to sell Air India, which has racked up losses worth $9.5bn.
Tata Group chairman Natarajan Chandrasekaran met Prime Minister Narendra Modi on Thursday before the handover.
The existing board of directors for the airline has resigned, making way for a new board appointed by the Tata Group.
It's unclear when Air India will begin flying under the Tata banner.
The airline called the deal a "brand new chapter" in its history. "Two iconic names come together to embark on a voyage of excellence," it wrote on Twitter.
The sale is a boost to Modi who had been keen to sell the government's entire interest in the airline. It's also the biggest disinvestment in government-owned assets and companies since Modi came to power in 2014.
The government has been unable to divest its stake in several loss-making public companies despite its ambitious targets.
Air India has many assets, including prized slots at London's Heathrow airport, a fleet of more than 130 planes and thousands of trained pilots and crew.
Tata Sons already run two airlines in India — Vistara, a full service carrier in partnership with Singapore Airlines, and AirAsia India, a budget airline in partnership with Malaysia AirAsiaBhd.
Air India had been making losses since 2007 when it was merged with the state-owned domestic operator Indian Airlines. It remained operational due to taxpayer-funded bailouts.
The government said running the airline was incurring losses of nearly $2.6m every day.
The airline's management cited rising aviation fuel prices and airport usage charges as well as competition from low-cost carriers, a weakening rupee and the interest burden for its poor financial performance.
Air India "suffered for its inconsistent service standards, low aircraft utilisation, dismal on-time performance, antiquated productivity norms, lack of revenue generation skills and unsatisfactory public perception", according to Jitender Bhargava, a former executive director of the airline.
Yet the airline has attracted buyers because it owns several valuable assets, including millions of dollars worth of prime real estate.
Apart from its fleet of over 130 aircraft, the new buyer will now have control of the airline's 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas. More than two-thirds of its revenues come from its international operations.
According to the aviation ministry, its fixed assets - land, buildings, planes - in March last year were worth more than 450bn rupees ($6bn).
Air India also has more than 40,000 pieces of art and collectibles, including an ashtray designed and gifted by Spanish surrealist artist Salvador Dali in the 1960s. In return the airline gave Dali a baby elephant, which was flown to Spain.
With India seeing passenger growth of around 20% per year and analysts saying the Indian market is vastly underserved, Air India is a good prospect for Tata Group, say experts. — BBC


Clic here to read the story from its source.