How Tata Group plans to fly Air India out of losses
The Tata Group, through its special purpose vehicle, Talace Private Limited, has won the bid to buy Air India at a cost of Rs 18,000 crore. The deal is expected to be finalised by the end of the year, thus again making Tatas the owners of the airline after 68 years. For the Tatas, however, the deal is not just an emotional one to buy the airline that JRD Tata had founded. According to sources, the group has worked out the synergy between Air India and other group companies that will allow cost-cutting and make the airline competitive. The key to reviving the fortunes of the airline could be the synergy between various Tata group firms like TCS, Taj Sats and Tata Advanced Systems that have deep experience in servicing the airline businesses worldwide.