It’s more or less certain that the Tatas will take over Air India from the Indian government. The transaction will see the Tata group taking over Air India’s debt worth Rs 40,000 crore and paying equity value worth Rs 12,000 crore — thus taking the total valuation to around Rs 52,000 crore. By comparison, Rs 77,000 crore is the market value of Indigo — which does not fly to foreign destinations. However, the deal is certain to raise the hackles of the Opposition parties whenever it is formalised.

Though Air India has lost a lot of money in the past, it was always bailed out by the Indian government with taxpayers’ money. The airline was making a lot of profits but fell into bad times due to the lack of proper management and interference by powerful bureaucrats and politicians. With the Tatas back at the helm of the airline they founded, the taxpayers’ money will be hopefully saved.