<p class="title">The sale of Air India to the Tatas marks the most difficult disinvestment event ever in the country. It is important for many reasons. The government gets only Rs 2,700 crore from the sale but the gains are much bigger because a part of the load of accumulated debt and continuing losses are off its back now. It is the first sale of a PSU in two decades, and so breaks a jinx. Selling Air India was complex and difficult. Huge debt and losses that kept soaring, the influence that its employee unions wielded in decision-making and, for the present, the poor state of the airline industry presented difficulties. But even when the industry was growing, Air India was ailing. Repeated attempts to turn it around and infusions of money failed to work. But finally, the deal has now been done. </p>.<p class="title"><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/govt-issues-letter-of-interest-to-tatas-for-sale-of-air-india-1039705.html" target="_blank">Govt issues Letter of Interest to Tatas for sale of Air India</a></strong></p>.<p class="bodytext">Because of the historical and operational difficulties involved, the deal needed proper planning and problem-solving acumen. The efforts had collapsed more than once. The bid value was arrived at through enterprise valuation, as in mergers and acquisitions. As much as Rs 46,262 crore of debt had to be parked in a State-owned holding company. The airline was sold without its valuable real estate in major cities, as selling those assets would have been controversial. But the government can now breathe easy and the civil aviation ministry can turn its attention to the issues that plague the sector. The long-suffering industry has nose-dived during the pandemic time and recovery will be a long process. The government can think of policies and decisions that will help the sector to look up. </p>.<p class="bodytext">The Tatas seem happy that the airline has come back to them. Tata Airlines, later Air India, pioneered aviation in India under JRD Tata and so there are sentiments attached to its return to the family. The group already has a presence in the sector with Vistara and Air Asia, and Air India will add to it. The airline will need a lot of investment and hard work to make it competitive. But Air India also has strengths that will stand it in good stead. It has landing slots in all the major airports of the world and flying rights on some very important routes. It has valuable infrastructure and technical and human resources. It should be noted that the unions have not objected to the deal. This may be because they have realised that there is no other option. The goodwill that the Tatas evoke may also be a factor. </p>.<p><strong>Check out latest DH videos here</strong></p>
<p class="title">The sale of Air India to the Tatas marks the most difficult disinvestment event ever in the country. It is important for many reasons. The government gets only Rs 2,700 crore from the sale but the gains are much bigger because a part of the load of accumulated debt and continuing losses are off its back now. It is the first sale of a PSU in two decades, and so breaks a jinx. Selling Air India was complex and difficult. Huge debt and losses that kept soaring, the influence that its employee unions wielded in decision-making and, for the present, the poor state of the airline industry presented difficulties. But even when the industry was growing, Air India was ailing. Repeated attempts to turn it around and infusions of money failed to work. But finally, the deal has now been done. </p>.<p class="title"><strong>Also read: <a href="https://www.deccanherald.com/business/business-news/govt-issues-letter-of-interest-to-tatas-for-sale-of-air-india-1039705.html" target="_blank">Govt issues Letter of Interest to Tatas for sale of Air India</a></strong></p>.<p class="bodytext">Because of the historical and operational difficulties involved, the deal needed proper planning and problem-solving acumen. The efforts had collapsed more than once. The bid value was arrived at through enterprise valuation, as in mergers and acquisitions. As much as Rs 46,262 crore of debt had to be parked in a State-owned holding company. The airline was sold without its valuable real estate in major cities, as selling those assets would have been controversial. But the government can now breathe easy and the civil aviation ministry can turn its attention to the issues that plague the sector. The long-suffering industry has nose-dived during the pandemic time and recovery will be a long process. The government can think of policies and decisions that will help the sector to look up. </p>.<p class="bodytext">The Tatas seem happy that the airline has come back to them. Tata Airlines, later Air India, pioneered aviation in India under JRD Tata and so there are sentiments attached to its return to the family. The group already has a presence in the sector with Vistara and Air Asia, and Air India will add to it. The airline will need a lot of investment and hard work to make it competitive. But Air India also has strengths that will stand it in good stead. It has landing slots in all the major airports of the world and flying rights on some very important routes. It has valuable infrastructure and technical and human resources. It should be noted that the unions have not objected to the deal. This may be because they have realised that there is no other option. The goodwill that the Tatas evoke may also be a factor. </p>.<p><strong>Check out latest DH videos here</strong></p>
