Air India’s Journey and Disinvestment Timeline

1. Origins: Air India, originally known as Tata Airlines, was founded by Tata Sons
in 1932. It later became Air India and was nationalized by the Indian government.
2. Challenges: Over the years, Air India faced financial losses and operational
difficulties.
3. Disinvestment Decisions:
o 2018: The government decided to disinvest 76% stake in Air India but failed to
attract interested bidders.
o 2020: The decision was revised, and the government aimed to disinvest 100% of its
share in Air India.
o 2021: Tata Sons subsidiary, Talac Pvt Ltd, won the bid for Air India for Rs 18,000
crores

Importance of Air India

 Fleet and Network: Air India has a fleet of over 141 airplanes and access to a
network of 173 destinations, including 55 international destinations.
 Landing Slots: It holds 4,400 domestic and 1,800 international landing and
parking slots at domestic airports, along with 900 slots at overseas airports.
 Revenue: More than two-thirds of Air India’s revenues come from international
operations.
 Real Estate: Air India owns valuable real estate properties.
 Employee Strength: It employs nearly 12,000 people.

Tata Group’s Acquisition

 Historical Connection: The Tata Group founded Air India as Tata Airlines in 1932.
 Ownership: With the acquisition, Tatas now own iconic brands like Air India and the
Maharajah.
 Market Share: Tatas become the second-largest domestic player with a 22.9%
market share (combined with AirAsia and Vistara).
 IndiGo: IndiGo remains the leader with a 55.5% domestic market share

This strategic move aims to revitalize the airline and enhance its efficiency under private
ownership.