Air India, India`s flag carrier founded by the Tata group in 1932 and taken over by the Indian government, had been struggling over the years.
The Indian Government tried to sell the carrier on several occasions but could never reach an agreement. The airline had been piling losses every flight. However, after a long time with the Indian Government, the airline has once again been sold to the Tata group.
The airline was sold at around $2.4 billion. Under the government, the airline was suffering significant losses amounting to about $9.5billion. Now under Tata, a bright future can be expected for the airline.
This agreement is the start of a new chapter for air India. The airline is amongst the largest in India alongside Indigo, Spicejet and more. The airline has thousands of skilled pilots and crew who would have been in trouble if the airline were to cease operations.
With a fleet of 123 aircraft, the airline flies to various domestic and international destinations. The airline flies to countries like The UK, The USA, Australia, Canada and many more.
TATA Group isn’t a new player in the aviation Industry. The company owns two airlines; Vistara, a full-service carrier formed in partnership with Singapore Airlines and AirAsia India, a low budget carrier created in collaboration with AirAsia, Malaysia. The road ahead isn’t easy for Air India. India`s aviation market is one of the most competitive. Carriers like Jet Airways and Kingfisher couldn’t compete here, considering the rise of low-cost airlines.
Flying alongside them will be a significant challenge for Maharaja. Pulling the airline out of loss and making it a profitable company will be a challenging ride. The airline has slots in major airports worldwide and has significant real estate and assets that will prove to be very beneficial.
