So, Air India is finally retuning to the Tatas after Indira Gandhi essentially stole it from them. What will be the implications of this?
Better service? More planes and routes? More global tie-ups? End of VIP culture where ministers, bureaucrats and their families get free tickets and free upgrades? Better behaved and better looking air hostesses? Better food? Better prices?
Better service - Most probably More planes and routes - That's not needed in the first place. However, the private player might retire old B777s to focus on more fuel efficient aircrafts. However, the interiors of the aircraft will surely change. Global Tie-ups - Not needed. Already a member of Star Alliance End of VIP Culture - A full stop to that Better Behaved Air Hostesses - Yes, most probably. Better Food - Air India already offers good food from Taj - SATS Better Prices - Air India tickets are priced quite competitively in my opinion
Air India MUST go to the Tata's cause I can think of NO ONE else who will be able to do justice to and truly appreciate that art collection. Hopefully they will allow the public to freely see it.
Both the Airlines which are currently owned by Tata (Air Asia and Vistra) are loss making and Tatas have to infuse cash in them each year.
I know people love Tatas for their philanthropy but they have made some serious business mistakes. Tata group is completely dependent on TCS. Despite having so many businesses TCS alonee contributes 95% of the Tata group profits.
Just look at the Corus acqusition by Tata Steel. It was acquired at $13B in 2006 and today Tata Steel along with its WOS Corus is valued at $20B.
Their CV market share has come down significantly in last few years. PV is profitable only if you are in top 2. Which is why Ford left India. India automobile market is good only if you are in top 2 in terms of market share. Rest all are just registering loss year after year.
Er... because 99% of men are attracted by air hostesses even if it's antifeminist and not politically correct to admit that? So you have articles like these:
I know the daughter of an IAS officer (NLU student) who buys economy Air India tickets but gets upgraded to business class each time because of her dad's clout. This nonsense will hopefully end now.
You know the business sucks when there are just 2 bidders. Tatas have literally onboarded another liability after Corus and JLR. Also who can forget the Nano disaster. They kept manufacturing the failed vehicle until March 2020. The reason they stopped manufacturing it from April 2020 is not because they realized it doesnt sell but because it was not compliant of BS6 norms which were effective from April 2020. They kept unloading the Nano on their inhouse distributor Concorde until it was bankrupt and then closed the business.
Things will definitely improve in most of these areas as mentioned by the OP.
The biggest cause of concern for me would be that the less popular routes which now for a corporate airline won't make sense will be scrapped or have their capacity reduced.
Let's hope that the UDDAN scheme of the govt help alleviate my concerns.
If they get Air India, they'll have significant stakes in 3 airlines along so many other random related ventures (Taj SATS etc). I don't understand Tata's long terms strategy. What exactly does Air India offer them that can't be achieved by equivalent cash infusion in Vistara?
AI, as we know it today, is the merged entity consisting of the old Air India and Indian Airlines (IC). AI was a front-runner at the time of its inception, and much after, to the point where Cathay Pacific and SIA were modelled after it. AI also made profits well into the 2000s.
IC, on the other hand, was set up as a sarkari unit, and absorbed private airlines in the 50s. It was as much of a joke in terms of customer experience and service as any other Licence Raj enterprise.
The profitable AI and the largely incompetent IC were forced to merge, and take multiple disastrous decisions - purchases, giving up precious landing slots, flying rights - by a former aviation minister and his friend, the king (lol) of good times. This effectively ran the company into the ground and made AI a byword for incompetence.
In his haste to reclaim JRD's beloved, Ratan Tata seems to have taken on the burden of a mismanaged domestic carrier. I won't be surprised if the sales clauses include them forced to fly unprofitable routes to serve the needs of the country - something that only a PSU would ordinarily do. Added to that, I am certain that the IC lot will take it upon themselves, as a point of pride, to throw as many spanners as they can find into the works.
All this, of course, assumes that the Tatas do get AI.
Better service?
More planes and routes?
More global tie-ups?
End of VIP culture where ministers, bureaucrats and their families get free tickets and free upgrades?
Better behaved and better looking air hostesses?
Better food?
Better prices?
Better service - Most probably
More planes and routes - That's not needed in the first place. However, the private player might retire old B777s to focus on more fuel efficient aircrafts. However, the interiors of the aircraft will surely change.
Global Tie-ups - Not needed. Already a member of Star Alliance
End of VIP Culture - A full stop to that
Better Behaved Air Hostesses - Yes, most probably.
Better Food - Air India already offers good food from Taj - SATS
Better Prices - Air India tickets are priced quite competitively in my opinion
I know people love Tatas for their philanthropy but they have made some serious business mistakes.
Tata group is completely dependent on TCS. Despite having so many businesses TCS alonee contributes 95% of the Tata group profits.
Just look at the Corus acqusition by Tata Steel. It was acquired at $13B in 2006 and today Tata Steel along with its WOS Corus is valued at $20B.
I can understand the better behavior part. But what's that with 'better looking air hostesses'?
https://www.wonderslist.com/10-attractive-airlines-stewardess/
Tatas have literally onboarded another liability after Corus and JLR.
Also who can forget the Nano disaster. They kept manufacturing the failed vehicle until March 2020. The reason they stopped manufacturing it from April 2020 is not because they realized it doesnt sell but because it was not compliant of BS6 norms which were effective from April 2020. They kept unloading the Nano on their inhouse distributor Concorde until it was bankrupt and then closed the business.
The biggest cause of concern for me would be that the less popular routes which now for a corporate airline won't make sense will be scrapped or have their capacity reduced.
Let's hope that the UDDAN scheme of the govt help alleviate my concerns.
If they go into this trap (acquiring Air India)
Some ** corporate lawyers (Insolvency Vultures) will make even more money.
routes
alliance
govt qpq
AI, as we know it today, is the merged entity consisting of the old Air India and Indian Airlines (IC). AI was a front-runner at the time of its inception, and much after, to the point where Cathay Pacific and SIA were modelled after it. AI also made profits well into the 2000s.
IC, on the other hand, was set up as a sarkari unit, and absorbed private airlines in the 50s. It was as much of a joke in terms of customer experience and service as any other Licence Raj enterprise.
The profitable AI and the largely incompetent IC were forced to merge, and take multiple disastrous decisions - purchases, giving up precious landing slots, flying rights - by a former aviation minister and his friend, the king (lol) of good times. This effectively ran the company into the ground and made AI a byword for incompetence.
In his haste to reclaim JRD's beloved, Ratan Tata seems to have taken on the burden of a mismanaged domestic carrier. I won't be surprised if the sales clauses include them forced to fly unprofitable routes to serve the needs of the country - something that only a PSU would ordinarily do. Added to that, I am certain that the IC lot will take it upon themselves, as a point of pride, to throw as many spanners as they can find into the works.
All this, of course, assumes that the Tatas do get AI.