Tata took over Air India: Air India's homecoming after 69 years, Chairman Chandrasekaran met PM Modi before the official takeover


Posted on 27th Jan 2022 04:06 pm by rohit kumar

There has been a big change this year for the country's aviation industry of Rs 1.2 lakh crore. Government company Air India has become private with effect from 27 January 2022. Tata Sons have officially taken over Air India. After this Tata has become the second-largest airline in the country. Tata Sons Chairman meets PM Narendra Modi ahead of the Air India handover.

 

information on social media

 

The Secretary of the Department of Disinvestment gave this information on social media. In this, he said that the entire process of taking over Air India has been completed today and this deal has now been closed. Its entire share has been transferred to Tales. After this Chandrasekhar said that we are very happy with this deal that Air India has come to the Tata Group. We will now work to make a world-class airline.

 

Chandrasekaran reached the Air India office

 

Earlier, after meeting the Prime Minister, Chandrasekaran directly reached the Air India office in New Delhi. On the other hand, the country's largest bank State Bank said that it is ready to deal with any kind of loan requirement with the group of banks. State Bank said that it will give loans to Air India for working capital and others as and when required.

 

Air India has many important flights on domestic and international routes. In such a situation, it can be said that with the new management, travelers doing domestic and international travel can get better facilities.

 

Tata Group has said that initially, it will provide free food on 5 flights. However, Air India will not fly under the Tata Group banner as of now. The flights in which free food will be available include two Mumbai-Delhi flights AI864 and AI687, AI945 Mumbai to Abu Dhabi, and AI639 Mumbai to Bangalore. Apart from this, free food will also be available on flights operating on the Mumbai-New York route. Tata Group said that later the free meal will be increased in a phased manner.

 

Let us know how Air India started, how it came from Tata to Government and from Government to Tata again. How the entire aviation industry is going to change and how will it benefit the passengers.

 

Air India was started in 1932

Talking about the history of Air India, it started in April 1932. It was founded by industrialist JRD Tata. At that time the name was Tata Airlines. JRD Tata first flew an airplane as a hobby in the year 1919 at the age of just 15, but the hobby became a passion and JRD Tata took his pilot's license.

 

First flight on 15 October 1932

The airline's first commercial flight took off on 15 October 1932. Then there was the only single-engined 'Heavyland Puss Moth' airplane, which went to Mumbai via Ahmedabad-Karachi. There was not a single passenger in the plane at that time, but there were 25 kg letters. The letters were brought from London by Imperial Airways to Karachi. This airway was the royal aircraft of Britain. After this, in the year 1933, Tata Airlines took the first flight with passengers. The company was set up by Tata for two lakh rupees.

 

Air India got its name after the second world war

After the Second World War, normal flights were started from India, and then it was named Air India. It was made a public sector company. After independence in the year 1947, there was a need for a national airline. The Government of India took a 49% stake in it. After this, in 1953, the Government of India passed the Air Corporation Act and bought a majority stake in the company from the Tata group. In this way, it became completely a government company.

 

start of loss

After it was nationalized in 1954, the government formed two companies. Indian Airlines was fixed for domestic service and Air India for the overseas route. The company remained profitable till the year 2000. For the first time in 2001, it had a loss of Rs 57 crore. Then the Ministry of Aviation, blaming the then MD Michael Mascarenhas, was removed from the post.

 

Indian Airlines merged in 2007

Air India was merged with Indian Airlines in the year 2007. At that time the loss of both was Rs 771 crore. Before getting it, Indian Air Lines was at a loss of 230 crores. Whereas Air India was in loss of 541 crores. Since then the losses kept on increasing and the company kept taking a loan on loan.

 

Losses crossed 12 thousand crores

In the year 2009-10, its loss increased to more than 12 thousand crores. One reason for the loss was also given that the decision to purchase 111 aircraft in 2005 became a crisis for Air India. 70 thousand crores were spent on this deal. The second reason was also that during this time the new airline companies adopted the strategy of low fares from customer service. In this too, Air India lagged. Often this company is known for latency.

 

Private airlines used to fly at least 14 hours a day, while Air India's planes used to fly for 10 hours. On the other hand, on the route where private companies were reluctant to provide service, Air India was run on the route, which used to be a loss-making route.

 

Features of Air India

The biggest feature of Air India is that it still orders food from the five-star hotel Taj. This Taj's catering service orders it from Taj Sats to deliver food on the plane. Now that all airlines provide free water only, Air India still provides free food and snacks.

 

look more youthful

It got a makeover in 2015 and it was shown to be more youthful. Dhoti started wearing a turban as well as jeans and a suit. Air hostess branded in a traditional Indian saree. This image of Air India continues unabated.

 

10.5 crore people travel

In 2021, a total of 10.5 crore people traveled on domestic routes. India is the third-largest aviation market in the world. It is an industry of Rs 1.20 lakh crore. The International Air Transport Association (IATA) estimates that by 2030, India can overtake China and the US in this matter.

 

Expected investment of 35 thousand crores in 4 years

It is estimated that in the next 4 years, an investment of Rs 35,000 crore will come into this industry. The Government of India has planned an investment of Rs 14,000 crore by 2026, which will be spent on the development of airport infrastructure.

 

Air India's future and challenges

In fact, in the first phase, the Tata Group will work on a plan to bring this company from loss to profit. After this, it will be rid of debt and it may be possible to get it listed in the market by bringing its IPO. However, this will happen only when the company can recover from the loss. Because its valuation will be after that. Tata Group may shut it down on a loss-making route. This will also help in reducing debt. Air India currently has 114 aircraft. Of this, 42 are on lease and 99 are owned by him.

 

Experts say that the way the Tata Group works will take this company to a new height. Because he has a deep attachment to it and Ratan Tata himself had also said about buying Air India many times. They were also about to start airlines in 1990, but could not succeed.

 

The board meeting was on Friday

The company had a board meeting last Friday. In that Vikram Dev was made the new chairman. This way those who are currently board members will resign and at the end of the month, Tata will have its new board. The Tata Group will become the second-largest airline player in the aviation market with a market share of 25-30%.

 

Air India will be run by Tales

In October last year, Tata Group's Tales Pvt Ltd had won the tender to buy Air India. Tales will run Tata's airline business. A bid of Rs 18,000 crore was made for this. Along with Air India Express, the Tata Group also holds a 50% stake in SATS. Air India Sats does the work of ground handling.

 

NOC to Akasa in October itself

Incidentally, in October, the Tata group won the Air India bid and in the same month, ace investor Rakesh Jhunjhunwala's Akasa also got a no-objection certificate (NOC) from the government. It is believed that Akasa will start flying by May. In September 2021, a company named Jet Set Go also announced plans to launch its flights by 2024.

 

72 Boeing ordered

Akasa Air, the ultra low-cost airline of stock market big bull Rakesh Jhunjhunwala, has placed an order for 72 Boeing 737 MAX jets. This order was given in the air show being held in Dubai. The total cost of these planes is $ 9 billion. The delivery of the aircraft will start from this year itself. Vinay Dubey, CEO of the company said, “We believe that the new 737 MAX aircraft will support our goal of not only running an affordable airline but also making Akasa an environment-friendly company.

 

there will be 18 aircraft

They say we will have 18 aircraft in 2022-23. There will be 14-16 aircraft in the next year. The total cost of these planes is $ 9 billion. 72 aircraft are planned in five years. They say we will run a budget carrier. Our main plan is to provide good service to the customers which will also be affordable. The company expects to get the first aircraft in the second fortnight of April. The first commercial flight can start in June.

 

Initially focus on metros

The company will initially provide services on the routes of Mumbai, Delhi, Bangalore. The company will first run flights on the international route to neighboring countries. Then it will expand to South Asia and Middle East countries.

 

Jet's fleet will include 50 aircraft in 3 years

The new promoters of Jet Airways 2.0 expect to induct 50 aircraft in the next three years. Jet Airways was grounded in April 2019 due to being in debt. Earlier, the airline had the status of the largest private airline in the South Asian nation. The arrival of Akasa could create the same kind of scarcity as it did after the launch of Kingfisher Airways in 2005-06.

 

Jet Airways preparation

Jet Airways is preparing to fly again. It has been taken by Jalan Kalrock's group. There is a preparation to induct 100 aircraft in 5 years. It will be started by May of this year with 1 thousand employees. However, landing and parking slots will face difficulties in taking it.

 

The government is also working

The government is also working on giving benefits in this industry. In 2017, he started Ude Aam Aadmi ie ​​Udaan. This means connecting small airports and starting the flight there. This work has been done on more than 370 routes. So far Rs 3,550 crore has been spent on this.

 

There may be a drop in the rent

Experts believe that with the arrival of these airlines, there may be a drop in airfares immediately. Passengers will be directly benefited by this. However, it may take 2-3 years when both these airlines to scale up their scales.

 

indigo is the leader

The leader in the aviation market is IndiGo, with a fleet of about 278 aircraft. Its market share was around 50% as of October 2021. Now in the coming days, it can compete with Akasa and Jet Airways 2.0 as well as Air India.

 

Difficult to get a prime slot on a busy air route

It is also worth noting here that both Akasa and Jet Airways 2.0 will find it difficult to get prime slots on busy air routes like Mumbai soon after their launch. Due to this, they may face some trouble. Air India has a fleet of 117 aircraft. There are 4400 domestic and 1800 international landing and parking slots. However, it will have to first repay the loan of Rs 23 thousand crores. Then it has to come in profit and after that, it has to make its position in the market.

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