Why Would Anyone Buy a Sinking Airline?
What Tata’s Acquisition of Air India Taught Me About M&A
By Maitri Save | Investment Banking Student
From LinkedIn Captions to Balance Sheets
Six months ago, I was designing LinkedIn posts for brands. Today, I’m studying balance sheets and M&A deals. Life moves fast — and honestly, I’m still catching up.
I’m currently pursuing Investment Banking, and one deal completely changed how I think about finance. Tata’s acquisition of Air India in 2022.
My first reaction when I heard about it? “It’s Tata. They must have a plan.”
Turns out, that instinct was right. But the plan was smarter than I expected
The Deal That Made No Sense — Until It Did
Here’s what looked crazy on paper.
Air India had ₹61,000 crore in debt. It was losing ₹20 crore every single day. The seats were old, the brand felt tired, and nobody wanted to touch it.
And yet, Tata paid ₹18,000 crore to bring it home.
As a beginner, my first thought was — why?
You’re Not Buying the Losses. You’re Buying What’s Around Them.
This is the biggest shift in how I now think about M&A.
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When Tata acquired Air India, they weren’t just buying a broken airline. They were buying:
- 141 aircraft — ready to fly, already maintained
- 900+ international airport slots, including prime spots at London Heathrow — slots you simply cannot buy on the open market
- 90 years of brand recognition, globally
- 13,500 trained pilots and crew members — talent that takes years to build
In M&A, these are called strategic assets — things you cannot build overnight, no matter how much money you have.
Suddenly, ₹18,000 crore didn’t sound crazy anymore.
The Part They Don’t Teach You in Finance Class
Air India was founded by JRD Tata in 1932. Nationalized by the government in 1953. Gone for 69 years.
When Tata won the bid in 2022, Ratan Tata tweeted just two words:
“Welcome home.”
I didn’t expect to feel something reading about an M&A deal. But I did.
Because behind every financial model, there’s a human story.
What This Deal Taught Me as a Beginner
M&A isn’t about who’s profitable today — it’s about who sees value where others see risk.
Tata looked at a debt-ridden, loss-making airline and saw routes, slots, brand, fleet, and the future of Indian aviation — a market growing at 20% per year.
That’s not recklessness. That’s vision backed by analysis.
I’m still learning. Some days the concepts feel overwhelming. But then I come across a deal like this, and everything clicks a little more.
What do you think — masterstroke or massive gamble?
