Tata Sons Regain Control Of Air India

Tata Sons will pay $2.4 billion to take control of the troubled state airline, Air India. Previously, the airline was costing the Indian government around $3 million a day for the last 10 years. The sale marks one of the first moves made by the Indian government to bolster the treasury by selling off government entities. Talace Pvt Ltd—which serves as the holding company for Tata Motors—will acquire 100% of Air India as part of the deal. Interestingly, the deal puts the airline back in the hands of the company that founded it in 1932. Tata operates two other airlines: Vistara (with Singapore Airlines) and AirAsia India. In early trading, Singapore Airlines was down over 2% and Tata Motors rose over 15%.