Skip to content
Search

Latest Stories

Air India sold to Tata after 69 years in government hands

Air India sold to Tata after 69 years in government hands

INDIA'S beleaguered national carrier landed back in the hands of its founders on Thursday (27), decades after it was nationalised and following years as a monumental burden on the public purse.

Tata, a sprawling family-owned conglomerate with interests ranging from tea to software, is back in charge of Air India after concluding a Rs 180 billion (£1.79 bn) deal.

Thursday's handover marked the end of a long search for a buyer by India's government, which has spent nearly $15 bn (£11.21 bn) propping up the airline since 2009.

"We are totally delighted that this process is complete and very happy to have Air India back," Tata Sons chairman N Chandrasekaran told reporters after meeting with prime minister Narendra Modi.

"We look forward to working with everyone to create a world-class airline."

Air India was founded in 1932 and its maiden flight was piloted by JRD Tata, then-chairman of the eponymous firm.

The airline offered a slice of the high life, showcasing Bollywood actresses in its advertisements and even commissioning Spanish surrealist Salvador Dali to design its ashtrays.

India's newly independent government bought a majority stake in 1953 but by the end of the century the venture was struggling to compete with Gulf carriers and no-frills airlines.

Successive Indian governments tried to privatise the company but its huge debts and New Delhi's insistence on retaining a stake - since abandoned - put off would-be buyers.

Tata will take on around a quarter of Air India's Rs 615 bn (£6.11 bn) debt, while the remainder will be transferred to a special-purpose vehicle.

In return, it gets a fleet of around 120 aircraft, 6,200 airport gate slots in India and a further 900 overseas for a carrier that operates half of all international flights from India.

Analysts believe the deal will give the struggling airline a much-needed lift.

"Air India is one of the most neglected government organisations ever. Now that freshness will come back," aviation sector analyst Mark Martin said.

"We'll see an Air India which is more bright, more chirpier, more customer-friendly, more people-oriented."

Tata Group is one of India's biggest and oldest companies with a workforce of more than 800,000 people across steelmaking, automobiles and tech.

It already owns a 51 per cent stake in rival airline Vistara alongside minority partner Singapore Airlines and a majority stake in AirAsia's India operations.

While the Air India purchase will consolidate Tata's grip on the market, aviation expert Dhiraj Mathur said the conglomerate still faced a challenging battle to turn around the airline's fortunes.

"It's going to be a long and difficult road. There will be issues about the age of the aircraft, their maintenance," he said.

"There will be issues around... what they are going to do with the staff and so on. There are many challenges."

India's government is planning to sell off a suite of other public assets including oil and gas corporation Bharat Petroleum and insurance agency LIC.

(AFP)

More For You

Jio Platforms

Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. (Photo: Reuters)

Reuters

Jio IPO planned for mid-2026, AI unit announced with Meta and Google

RELIANCE Industries plans to take its telecom and digital arm, Jio Platforms, public by mid-2026, chairman Mukesh Ambani said on Friday. The announcement sets a new timeline for the long-awaited IPO of a business analysts value at over $100 billion.

At its annual general meeting (AGM), Reliance also announced the launch of an artificial intelligence unit in partnership with Google and Meta.

Keep ReadingShow less
Asda tech overhaul

Asda sales fell 0.2 per cent in the three months to June 30, 2025 (AFP via Getty Images)

AFP via Getty Images

Asda boss hails tech overhaul as key to revival despite sales slump

THE chairman of Asda has admitted the supermarket chain still faces challenges after sales slipped again over the summer, but said the completion of a major IT overhaul was crucial for its recovery.

Allan Leighton told the Times that the long-delayed technology project, called Project Future, had finally been finished after years of setbacks and costs exceeding £1 billion. The work involved separating more than 2,500 systems inherited from former owner Walmart, following Asda’s 2021 takeover by TDR Capital.

Keep ReadingShow less
JLR-Getty

A logo is pictured outside a Jaguar Land Rover new car show room in Tonbridge, south east England. (Photo: Getty Images)

Getty Images

UK car exports to US rebound after trade deal

UK VEHICLE exports to the United States rose in July after a new trade deal between London and Washington reduced tariffs, industry data showed on Thursday.

According to the Society of Motor Manufacturers and Traders (SMMT), exports increased 6.8 per cent in July to nearly 10,000 units, following three consecutive months of decline.

Keep ReadingShow less
Relatives of jailed Briton appeal to UK minister in AgustaWestland row

Christian Michel

Relatives of jailed Briton appeal to UK minister in AgustaWestland row

THE family of Christian Michel, the British businessman accused of acting as a middleman in the AgustaWestland VVIP helicopter deal, has appealed to the UK government to push for his release from Delhi’s Tihar Jail.

Michel’s relatives met Foreign Office minister Catherine West in London on Tuesday (26). The Foreign, Commonwealth and Development Office (FCDO) said the minister listened to their concerns and updated them on ongoing steps being taken.

Keep ReadingShow less
Blackburn loses Issa empire as brothers move EG Group to US

Zuber and Mohsin Issa (Photo: LDRS)

Blackburn loses Issa empire as brothers move EG Group to US

ASIAN entrepreneurs Mohsin and Zuber Issa are moving the headquarters of their global forecourt company, EG Group, from Blackburn to the US in preparation for a major stock market listing in New York.

The firm confirmed that its main office will relocate to Charlotte, North Carolina, while a new base in Bolton, Greater Manchester, will handle its remaining UK operations, the Telegraph reported. The change brings an end to almost 25 years of the company being run from Blackburn.

Keep ReadingShow less