Air India is in negotiations to lease about 400,000 square foot. of office space at Vatika’s office complex in Gurugram, Haryana. The airline has already signed a letter of intent (LoI) for an approximate 2 lakh sq. ft. area with the option of increasing the space in the future.
Air India is apparently planning to shift all offices to this building. Other airline companies like Tata Airlines, Vistara, and AirAsia – may also shift to the same complex later.
One on One, a Vatika project on National Highway 8, is being created in two phases over a 2.2 million square foot area for a cost of Rs 1,200 crore, according to the statement.
What Next After The Deal?
Business Today said that Air India Executive Director Harpreet De Singh has been charged with completing the handover. According to the statement, Singh would have support from a group of Tata Realty experts as well as consultants from Ernst & Young.
After winning the bid for the airline on October 8 of last year, the Tata group assumed management of the airline on January 27.
There are 12,085 employees overall at Air India, of which 8,084 work on a permanent basis and 4,001 on a contract basis. It’s budget international airline, Air India Express, has 1,434 employees.
How Is Tata Group Planning To Expand The Aviation Business
Tata Group is attempting to integrate all of its aviation businesses, including AirAsia India, Vistara, Air India Express, and Air India SATS, the ground handling provider, following the acquisition of Air India in January of this year.
The business stated that it is planning to move all the organisations together into a Gurugram complex in a staged manner. So that was an internal email that was sent to the CEOs of Vistara, AirAsia, Air India Express, Air India SATS, and the department heads of Air India.
How Tata Sons Acquired Air India
In a joint venture called Vistara, the Tata Group owns 51% of the stock while Singapore Airlines Limited (SIA) retains the remaining 49%. AirAsia India retains the majority of AirAsia India, holding 83.67% of the company, and Air Asia Investment Limited (Malaysia), which owns 16.33%.
Among the group of companies that Tata Sons acquired from the government earlier this year were Air India, Air India Express, and Air India SATS. The government owns a 50% share in the joint venture between Singapore Airport Terminal Services and AI SATS.
Source- ET
