Air India comes with over 140 aircraft but no real estate a...| MENAFN.COM

Saturday, 28 May 2022 07:07 GMT

Air India comes with over 140 aircraft but no real estate assets for Tata Sons


(MENAFN- IANS)

New Delhi, Jan 27 (IANS) Tata Sons subsidiary Talace, which took over the managerial control of Air India on Thursday, will get more than 140 aircraft and eight logos, among other assets such as human resources.

However, the transaction does not include non-core assets, including land and building, valued at Rs 14,718 crore, which are to be transferred to government of India's Air India Asset Holding Limited (AIAHL).

Besides, Tatas will also not get the world-famous art collection of Air India.

Nevertheless, the group will get Air India's 117 wide-body and narrow body aircraft apart from 24 aircraft of Air India Express. A significant number of these aircraft are owned by Air India.

It will also get to operate these aircraft on over 4,000 domestic and 1,800 international routes.

Also, eight brand logos would be transferable to the Tatas, which they have to retail for a period of five years.

As far as revenues are concerned, more than two-third of Air India's consolidated revenues come from the international market. The airline is still the largest 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.

Additionally, Air India comes with a frequent flyer programme which has more than three million members.

In terms of manpower, the conglomerate will get the total talent pool of Air India and Air India Express, which stands at over 13,000, including permanent as well as contractual employees.

Under the agreement with the Centre, no employee will be removed for one-year. In the second year, if an employee has to be removed, a VRS option will be provided.

The employees will be provided gratuity, provident fund and post-retirement medical benefits.

Financially, Tatas will retain a debt of Rs 15,300 crore. It had to pay Rs 2,700 crore to the Centre as the cash component.

In addition, Tatas will need to take care of the Rs 20 crore loss per day that the company suffers.

There is also a three-year business continuity clause in the agreement.

Tatas would also need to maintain 51 per cent stake in the airline for at least one-year.

--IANS

rv/arm

MENAFN27012022000231011071ID1103602470


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.