Air India Divestment: The central government has clarified that Tata Sons, the successful bidder for Air India, will have to retain all employees of the airline for one year. For retrenchment of employees after this period, the company has to offer them VRS (Voluntary Retirement Scheme).
Civil Aviation Secretary Rajiv Bansal on Friday said that the winning Tata Sons will retain all employees, which means they will not lay off any employees for a period of one year. Thereafter, VRS will be offered to an employee if he is laid off or fired during the second year.
Air India Disinvestment Live Updates: Tata Sons wins Air India auction
Bansal further informed that as on date Air India has 12,085 employees out of which 8,084 are permanent employees and 4,001 employees are on contract. Apart from this, there are 1434 employees in Air India Express. If they are trimmed for one more year, then they will have to pay VRS.
Tata gets the command of Air India
Tata Sons has won the bid to acquire the heavily debt-ridden state-run Air India. Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), which is responsible for the privatization of state-run companies, said that a Special Unit (SPV) of Tata Sons, the holding company of the Tata Group, has emerged as the successful bidder. .
DIPAM’s secretary said Tata’s bid of Rs 18,000 crore includes taking a loan of Rs 15,300 crore and paying the rest in cash. Now Tata will repay Air India’s debt of Rs 15,300 crore. Air India had a debt of Rs 61,560 crore as of August 31. In this, Tata Sons will pay Rs 15,300 crore while the remaining Rs 46,262 crore will be paid by AIAHL (Air India asset holding company).
Jahangir Ratanji Dadabhai (JRD) Tata founded the airline in 1932. Then it was called Tata Airlines. In 1946 the aviation division of Tata Sons was listed as Air India and in 1948 Air India International was started with flights to Europe. The international service was one of the first public-private partnerships in India, with the government holding 49 percent, the Tatas 25 percent and the public holding the remainder.
Air India was nationalized in 1953. The government is selling its 100 per cent stake in the state-owned airline, which includes Air India’s 100 per cent stake in AI Express Ltd and 50 per cent stake in Air India SATS Airport Services Pvt Ltd.
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