Transfer of Air India

The Union government transferred 100% shares in Air India to Tata’s wholly owned subsidiary Talace Pvt Ltd along with management control.

Concerns for Tata group

• Air India is a money-losing carrier
• High operational costs of Air India
• Integration of Air India’s fragmented operating network
• Air India has a bloated workforce and dwindling market share
• Augment network and routes and close down loss-making ones

Significance

• It will soon emerge as world-class airline
• It will help in making the aviation sector affordable