In October 2021, Government of India signed a share purchase agreement with Tata Sons for sale of which of the following airlines for Rs 18,000 crores?
Last updated May 13, 2026
Correct Answer:
Option D —
Air India
Key Financial Details
The deal was valued at ₹18,000 crores, structured as follows:
Cash Payment: Tata Sons paid ₹2,700 crores in cash to the government.
Debt Assumption: The group took over ₹15,300 crores of the airline's accumulated debt.
Included Assets: The sale included 100% stake in Air India, 100% stake in its low-cost subsidiary Air India Express, and a 50% stake in the ground-handling joint venture AISATS.
Historical Significance
This was a historic "homecoming" for the airline. Air India was originally founded by J.R.D. Tata as Tata Airlines in 1932 before being nationalized by the Indian government in 1953. After nearly 69 years, the airline returned to the Tata Group's control on January 27, 2022, when the handover process was officially completed.
Why the other options are incorrect:
IndiGo: Operated by InterGlobe Aviation, it is a private airline and was never owned by the government.
SpiceJet: A private low-cost carrier; interestingly, its promoter Ajay Singh led a rival consortium that bid ₹15,100 crores for Air India but lost to the Tatas.
Go First: Owned by the Wadia Group, it remained a private entity until it filed for bankruptcy in 2023.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
