Tata Group Acquires 100% Ownership of Air India

Tata Sons was announced the new owner of Air India, the national carrier of India. With the government’s decision to privatize the debt-ridden carrier, Tata Sons’ successful $2.4 billion bid marks a major step in the conglomerate’s plan to become a prime aviation player.

Air India was initially founded by Tata group in 1932 as “Tata Airlines”. However, after India’s independence from British rule in 1947, the government bought 49% stake in Air India with Tata owing 25% and public owning the rest. After seven long decades, Tata Sons, the holding company of Tata Group has successfully acquired 100% ownership of the airlines.

Ashwini Phadnis, a Delhi-based aviation journalist said that “Under Tata Sons, the carrier will be a formidable player – the takeover will be good for industry as the government will not have to keep pumping money into an airline burdened with debt.”