Real Asset returned back to Tata Hands - Air India - Wonderful Moment for Ratan Tata - SJ Informative

Welcome Back! Air India - Ratan Tata - The Indian Industrialist

    It is an wonderful moment for all Indians not only for Tata. Ratan Tata got his ownership for Air India after 68 years, the majestic moment. As per Indian's formula, Grandfather's asset is owned by Grandson. Coming to the point, Ratan Tata have bought Air India from Indian Government through auction. The reason for selling Air India by Government is huge loss. Yes, Indian Government cannot maintain Air India like private airlines at the same time they have faced huge losses so Indian Government have decided to sell major part of shares of Air India, total 76 percent of shares with conditions. 

    Jehangir Ratanji Dadaboy Tata (JRD Tata), grandfather of Ratan Tata had started his 1st airlines in October 15, 1932, integrated with Imperial Airways, owned by British. The purpose of this usage was to transfer goods. JRD Tata bought this aircraft for Rs. 20000 and the name was a De Havilland Puss Moth. The first flight was from Karachi to Mumbai. JRD Tata was the first person in India to got license for Airlines, but there was no pilot to operate, then pilot from British operated this aircraft. This was the 1st point where JRD Tata started his Airlines.

    After some months JRD Tata started aircraft for passengers with the name Tata Air Service from Mumbai to Thiruvananthapuram. In 1938, name changed to Tata Airlines, after that passenger flight started from Sri Lanka to Burma. In 1939, Second World War was started, Tata Airlines brought huge refugees from Burma at that time. In July 29, 1946 Tata Airlines was changed from private to public limited company so any other private companies can buy the shares. In 1948, Indian Government bought half shares of Tata Airlines and then passenger service started from Mumbai to London. In 1953, as per Air Corporations Act, Central Government bought total shares of Tata Airlines. 

    Then Tata Airlines divided into two groups Air India and Indian Airlines. Air India for international purposes and Indian Airlines for domestic purposes. Though Government taken over Airlines but Tata was the head of administration up to 1977. It was the only Airlines successfully ran up to 1994. After that Government gave permission for private Airlines to start, that was the starting point of regression for Air India. Due to many reasons government can't return to its original position so they have decided to sell the shares of Air India in February 2021. 

    Government have announced the report to sell 76 percent of shares with conditions, but no one private companies have not come front to buy this Airlines because of remaining 24 percent shares and also Government told that Air India will be lead by one Government officer only after the auction. This news have created private airlines to think, because they can't take their own decision if government officer in administration. After that Government have decided to sell total shares. Then Ratan Tata have stepped into it.

    Indian Government started auction with starting prize of Rs. 12906 crores, many private airlines shown their interest to acquire Air India including Spice Jet. Then Tata Sons have bought Air India for 18000 crore and won this auction. The main reason to buy this airlines for 6000 crore more is that, this is like Tata's family asset and this moment is honour and prestige for them. Then seeing the result, Government exemption from Airlines cost and because of selling huge shares there is huge loss for Central Government but Tata Sons meet profit after getting huge amount of shares from Government.

    But now there is no more Airlines under the control of Government. We all know that Air India was the only Airlines to save people from other countries to India in Covid situation, but now no more. We believe that Ratan Tata will prepare many ways to develop Air India for passengers in any kind of situation.

Thanks,

S.J.