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

Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less
Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less