{"id":17597,"date":"2022-02-09T18:05:22","date_gmt":"2022-02-09T12:35:22","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=17597"},"modified":"2022-02-09T18:05:24","modified_gmt":"2022-02-09T12:35:24","slug":"tata-group-starts-overhaul-of-air-india-after-pm-hand-over-state-carrier","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2022\/02\/09\/tata-group-starts-overhaul-of-air-india-after-pm-hand-over-state-carrier\/","title":{"rendered":"Tata group starts overhaul of Air India after PM hand over state carrier"},"content":{"rendered":"\n<p class=\"has-drop-cap\"><strong>Indian conglomerate resolved to defy critics of the agreement and turn the round struggling airline After eight years of late salary payments and months of coronavirus pandemic salary cuts, Air India pilot Ritesh is daring to expect that he will finally be paid on time once India\u2019s powerful conglomerate Tata Sons takes control of the airline.<\/strong><\/p>\n\n\n\n<p><em> \u201cIt\u2019s been years since we have seen timely payment,\u201d told Ritesh, a second-generation Air India pilot who requested to operate a pseudonym. <\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ratan-tata-and-india-s-prime-minister-narendra-modi\">Ratan Tata and India\u2019s Prime Minister Narendra Modi <\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-1024x576.jpg\" alt=\"\" class=\"wp-image-17600\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-1024x576.jpg 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-600x338.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-300x169.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-768x432.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-1536x864.jpg 1536w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-2048x1152.jpg 2048w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-750x422.jpg 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/0a92fcd3-a1a5-46e5-ac6f-1733bebeb401-1140x641.jpg 1140w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>Air India |aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n<p>\u201cWe are hoping that when the Tatas take over, things will be streamlined.\u201d Ritesh is one of Air India\u2019s 13,500 workers currently employed by Tata Sons after New Delhi gave over the airline in January. <\/p>\n\n\n\n<p>The agreement fulfilled longtime dreams of both Tata chair emeritus Ratan Tata and India\u2019s <a href=\"https:\/\/www.narendramodi.in\/\" rel=\"noreferrer noopener sponsored nofollow\" target=\"_blank\">Prime Minister Narendra Modi.<\/a> India had tried and failed to privatize Air India for two decades, while Tata wanted to reclaim the airline his ancestor J R D Tata established in 1932 before the Nehru government nationalized it in 1953. <\/p>\n\n\n\n<p>Now, the hard work to reform an airline bleeding $2.4mn a day begins. Air India is operating on a fleet of aging Airbus and Boeing aircraft, the company culture is criticized as bureaucratic and it has been extracted into legal battles near the world.<\/p>\n\n\n\n<p> \u201cAir India seems a bit like a black hole, an endless drain on resources,\u201d told Coomi Kapoor, author of The Tatas, Freddie Mercury &amp; Other Bawas: An Intimate History of the Parsees.<\/p>\n\n\n\n<p>The Tatas have conceded that turning around the carrier will be challenging. \u201cAdmittedly it will take considerable action to rebuild Air India,\u201d Ratan Tata wrote on Twitter after the conglomerate\u2019s bid was taken in October. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Shri N Chandrasekaran, the Chairman of Tata Sons called on PM <a href=\"https:\/\/twitter.com\/narendramodi?ref_src=twsrc%5Etfw\">@narendramodi<\/a>. <a href=\"https:\/\/twitter.com\/TataCompanies?ref_src=twsrc%5Etfw\">@TataCompanies<\/a> <a href=\"https:\/\/t.co\/7yP8is5ehw\">pic.twitter.com\/7yP8is5ehw<\/a><\/p>&mdash; PMO India (@PMOIndia) <a href=\"https:\/\/twitter.com\/PMOIndia\/status\/1486628437590568962?ref_src=twsrc%5Etfw\">January 27, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><figcaption><strong>Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>From the spectacular collapse of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Kingfisher_Airlines\" rel=\"noreferrer noopener sponsored nofollow\" target=\"_blank\">Kingfisher Airlines <\/a>10 years ago to the grounding of <a href=\"https:\/\/www.jetairways.com\/\" rel=\"noreferrer noopener sponsored nofollow\" target=\"_blank\">Jet Airways<\/a> in 2019, India\u2019s fast-growing aviation sector has been defined by booms and busts. But for all its issues, taking over Air India creates strategic sense for the conglomerate, told,, analysts. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tata-approximately-23-percent-of\">Tata approximately 23 percent of  <\/h2>\n\n\n\n<p>The deal is set to give Tata approximately 23 percent of the market share in India, consolidating its presence in a fiercely competitive field with rock-bottom fares. \u201cTata-owned Air India will require three to five years for a structural turnaround,\u201d told Kapil Kaul, chief executive of Capa India, an aviation advisory and research group. <\/p>\n\n\n\n<p>\u201cThe first 12 to 18 months are critical to stabilize <a href=\"http:\/\/www.airindia.in\/\" rel=\"noreferrer noopener sponsored nofollow\" target=\"_blank\">Air India<\/a> and institutionalize strategic changes.\u201d The conglomerate is taking on less risk than it appears. Tata\u2019s bid put debt-laden <a href=\"http:\/\/www.airindia.in\/\" rel=\"noreferrer noopener sponsored nofollow\" target=\"_blank\">Air India<\/a> at an enterprise value of $2.4bn. A government holding company retained almost $2bn worth of <a href=\"http:\/\/www.airindia.in\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Air India<\/a>\u2019s land and buildings, as well as three-quarters of its enormous $8.2bn debt pile, according to local press information. <\/p>\n\n\n\n<p>That clears Tata of spending most of the interest on Air India\u2019s debt. Tata only had to front $375mn in cash, told Neha Singh, a lawyer specializing in aviation who advised on the Air India government disinvestment. The conglomerate also had the advantage of taking out low-interest loans from the state-owned banks backing Air India.<\/p>\n\n\n\n<p>Tata was able to secure loans easily, told Singh, adding: \u201cIt seems they have lender confidence and should be able to borrow at a extremely competitive rate from state-owned banks.\u201d<\/p>\n\n\n\n<p>Air India adds capacity to Tata\u2019s 51 percent stake in full-service airline Vistara and its 84 percent stake in budget carrier AirAsia. All three are unprofitable. Tata can grow using Air India\u2019s 900 valuable landing slots at airports around the world and 6,200 slots in India, said Jitendra Bhargava, a former Air India executive director. \u201cLet\u2019s say the Tatas had not taken over Air India. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How long will it take for Vistara to grow to such a scale [organically]? <\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-1024x569.jpg\" alt=\"\" class=\"wp-image-15973\" width=\"1035\" height=\"575\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-1024x569.jpg 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-600x334.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-300x167.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-768x427.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-750x417.jpg 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200-1140x634.jpg 1140w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2021\/12\/vistara-1200.jpg 1200w\" sizes=\"(max-width: 1035px) 100vw, 1035px\" \/><figcaption><strong>Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><span class=\"has-inline-color has-vivid-red-color\">To take slots at Heathrow airport is not easy.\u201d Merging Tata\u2019s airlines with Air India is the following step, told experts. \u201cIt appears obvious that they would consider consolidating some of their brands to acquire scale efficiencies,\u201d told Adrian Schofield, an editor for New York-based Aviation Week. <\/span><\/p><\/blockquote>\n\n\n\n<p>\u201cThe most likely way to do that would be to connect the low-cost carriers of Air India Express owned by Air India and AirAsia India.\u201d Along with heavy investments in aircraft upgrades, the turnround will have to start with the airline\u2019s culture, according to Bhargava. \u201cThe government culture is unproductive and inefficient,\u201d told Bhargava. \u201cThe Tatas will have to [first] invest money in re-engineering work practices.\u201d<\/p>\n\n\n\n<p><strong>Also, read <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"https:\/\/aviationa2z.com\/index.php\/2022\/02\/08\/plane-crash-pilot-refuses-the-charge-of-causing-loss-of-rs-85-crore-to-government\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Plane crash: Pilot refuses the charge of causing \u2018loss of Rs 85 crore\u2019 to government<\/a>   <\/strong><\/li><li><strong><a href=\"https:\/\/aviationa2z.com\/index.php\/2022\/02\/08\/delhi-airports-new-terminal-1-for-domestic-arrivals-section-may-start-in-a-week\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">Delhi airport\u2019s new terminal 1  for domestic arrivals, section may start in a week<\/a>   <\/strong><\/li><li><strong><a href=\"https:\/\/aviationa2z.com\/index.php\/2022\/01\/25\/aircar-certified-to-fly-caa-issues-certificate-of-airworthiness\/\" target=\"_blank\" rel=\"noreferrer noopener sponsored nofollow\">AirCar Certified to Fly! \u2013 CAA issues Certificate of Airworthiness<\/a><\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tata-agreed-to-keep-on-all-air-india-staff\">Tata agreed to keep on all Air India staff <\/h2>\n\n\n\n<p><em>Some reforms are underway. As part of the handover, Tata agreed to keep on all Air India staff, but only for a year, which Bhargava said should provide an incentive to employees to perform. Employees who live in Air India accommodation, typical for government workers, have been told to move out. Unions continue to threaten industrial action overpay.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-1024x768.jpg\" alt=\"\" class=\"wp-image-17601\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-1024x768.jpg 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-600x450.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-300x225.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-768x576.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-750x563.jpg 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image-1140x855.jpg 1140w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/02\/image.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>Aviationa2z.com<\/strong><\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Many hope Tata can revive the airline\u2019s lost glamour. One former cabin crew member, who worked at the airline when it was run by J R D Tata, told it was his personal touch that set Air India apart. <\/li><\/ul>\n\n\n\n<p><em>\u201cThe reason the airline was so good was Mr.. Tata. People knew he was very particular about everything, he was the one who set standards,\u201d she told, remembering that he selected the French wine served on board. Ritesh, the pilot, tells he would also welcome the Tata touch to restore the airline to its former glory. Even he admits: \u201cRight now, we\u2019re not very satisfied with the in-flight service.\u201d<\/em><\/p>\n\n\n\n<p><strong>Thank you<\/strong><\/p>\n\n\n\n<p><strong>Stay updated with Aviationa2z.com<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian conglomerate resolved to defy critics of the agreement and turn the round struggling airline After eight years of late salary payments and months of coronavirus pandemic salary cuts, Air India pilot Ritesh is daring to expect that he will finally be paid on time once India\u2019s powerful conglomerate Tata Sons takes control of the airline.<\/p>\n","protected":false},"author":3,"featured_media":17601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6761],"tags":[82,392,79,172,1238,3625,583,976,1594,4362],"class_list":{"0":"post-17597","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-air-india","9":"tag-airlines-news","10":"tag-aviation","11":"tag-minister","12":"tag-narendra-modi","13":"tag-prime-minister-narendra-modi","14":"tag-tata","15":"tag-tata-group","16":"tag-tata-sons","17":"tag-tata-sons-ltd"},"_links":{"self":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/17597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/comments?post=17597"}],"version-history":[{"count":3,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/17597\/revisions"}],"predecessor-version":[{"id":17608,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/17597\/revisions\/17608"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media\/17601"}],"wp:attachment":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media?parent=17597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/categories?post=17597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/tags?post=17597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}