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Air India acquisition by Tata group gets CCI clearance

Competition Commission of India (CCI) has cleared Tata Group's acquisition of Air India, Air India Express and Air India SATS Airport Services
Competition Commission of India (CCI) on Monday cleared Tata Group's acquisition of Air India
Competition Commission of India (CCI) on Monday cleared Tata Group's acquisition of Air India

New Delhi: Putting words into action the govt has moved one more step closer to completing the Air India acquisition. Competition Commission of India (CCI) on Monday approved Tata Group's acquisition of Air India, Air India Express and Air India SATS Airport Services. Union Minister Hardeep Singh Puri had earlier said that the government is making all efforts to complete the Air India disinvestment process to hand over all operations to Tata Group by the end of December.

The government on October 8 had announced that Tatas have won the bid to acquire debt-laden national carrier Air India for Rs 18,000 crore. The amount includes payment of Rs 2,700 crore in cash and takes over Rs 15,300 crore of the carrier's debt.

Along with Air India, Tatas will acquire low-cost carrier Air India Express and Air India's 50% stake in equal joint venture AISATS.

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Besides, non-core assets of Air India, including land and building, valued at Rs 14,718 crore, are also being transferred to AIAHL. Further, liabilities of Rs 15,834 crore towards dues to operational creditors, like those for fuel purchases, as of August 31 would be transferred to AIAHL. In 2019, the Centre had set up a special purpose vehicle, Air India Assets Holding Ltd (AIAHL), for holding debt and non-core assets of the Air India group.

Following the completion of the announcement of the winning bidder, the government had on 11 October issued a letter of intent (LoI) to the Tata group.

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