Top Recommended Stories

After Taking Over Air India, Tata Group May Change Seating Arrangements And Dress Code Of Cabin Crew

The Tata Group, which is set to be officially handed over Air India, is likely to make several changes for the airline including changing seating arrangements and dress code of cabin crew.

Updated: January 27, 2022 4:10 PM IST

By News Desk | Edited by Snigdha Choudhury

After Taking Over Air India, Tata Group May Change Seating Arrangements And Dress Code Of Cabin Crew
The Tata Group on Thursday took full control of the airline, it founded in 1932. (Photo: Twitter/@hvgoenka)

New Delhi: The Tata Group, which officially took over Air India on Thursday, is likely to focus on improving the airlines’ On-Time-Performance, sources said. Several changes for Air India are also likely to be made including changing seating arrangements and the dress code of cabin crew, according to sources. Last year, the government sold Air India to Talace Private Limited – a subsidiary of the Tata Group’s holding company – for Rs 18,000 crore in a competitive bidding process.

Also Read:

“Tata will make big changes after the formal handover of Air India. The maximum emphasis will be given to ensure that all Air India aircraft fly on time,”  sources were quoted as saying by news agency ANI.

You may like to read

“Tata Group has also planned several other changes. There will be changes in seating arrangements and also the dress of the cabin crew. Tata is a leading player in the hotel business and it will give top priority to improve the quality of food in the airline,” sources said.

Ahead of the official handover of Air India to the Tata Group, Tata Sons chairman N Chandrasekaran called on Prime Minister Narendra Modi on Thursday. Later, Chandrasekaran also visited the Air India headquarters.

“Shri N Chandrasekaran, the Chairman of Tata Sons called on PM @narendramodi,” the Prime Minister’s Office tweeted, along with a photograph of the meeting.

The Tata Group took full control of the airline, it founded in 1932, today (January 27). The cash component of the deal would come once the handover process is completed.

The Tata Group would pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline’s debt. The deal also includes the sale of Air India Express and ground handling arm AISATS.

The transaction was to be completed by December 2021, but the deadline was later extended till January 2022, owing to longer-than-expected time taken to complete procedural work.

This will mark the return of Air India to the Tata fold after 67 years. The Tata Group had founded Air India as Tata Airlines in October 1932. The government nationalised the airline in 1953.

As a precursor to the handover process, the Department of Investment and Public Asset Management (DIPAM) on January 24, notified the framework agreement entered into by and between Air India Ltd and AI Assets Holding Ltd (AIAHL) for transfer of assets of the national carrier post it ceasing to be a public sector company.

AIAHL was set up in 2019, by the government for holding debt and non-core assets of the Air India group.

Four Air India subsidiaries — Air India Air Transport Services Ltd (AIATSL), Airline Allied Services Ltd (AASL), Air India Engineering Services Ltd (AIESL) and Hotel Corporation of India Ltd (HCI) — along with non-core assets, painting and artefacts, and other non-operational assets, was transferred to the SPV.

In October last year, Tatas beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier.

As on August 31, 2021, Air India had a total debt of Rs 61,562 crore. Around 75 per cent of this debt or Rs 46,262 crore will be transferred to the special purpose vehicle, AIAHL, before handing over the loss-making airline to the Tata Group.

Besides, non-core assets of Air India, including land and building, valued at Rs 14,718 crore are also being transferred to AIAHL.

Tatas would not get to retain non-core assets such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi.

Of the 141 Air India aircraft that Tatas would get, 42 are leased planes while the remaining 99 are owned.

While this will be the first privatisation since 2003-04, Air India will be the third airline brand in the Tatas’ stable – it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.

Air India will give it access to a fleet of 117 wide-body and narrow-body aircraft and Air India Express Ltd another 24 narrow-body aircraft besides control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas such as London’s Heathrow.

For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest India News on

Published Date: January 27, 2022 3:56 PM IST

Updated Date: January 27, 2022 4:10 PM IST