Lately, the aviation industry of India has seen a major shift. Government-owned airlines Air India has become private airlines with effect from 27 January 2022. Tata Sons has officially taken over Air India. After this Tata has become the second-largest airline in the country. Air India’s 100% stake was bought for 18 thousand crores. Under this agreement, Tata will also have to repay Air India’s debt of more than 23 thousand crores.
Round trip of ownership:
Air India was started in April 1932. It was founded by industrialist JRD Tata. At that time its name was Tata Airlines. JRD Tata used to fly 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. This passion leads him to start his own airlines.
The Tata airline’s first commercial flight took off on 15 October 1932 from Mumbai. However, on this flight, there was no passenger, but there were 25 kg letters. A year later, in 1933, Tata Airlines took the first flight with passengers. The company was set up by Tata at a cost of two lakh rupees.
After the Second World War, it was named Air India. 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.
What is expected from Tata?
Recorded audio has been released by Ratan Tata. It said that he passengers would be welcomed as a guest. With this, the Tata Group will work to revamp the condition of currently infirm airline. Although, Air India will not fly under the Tata Group banner as of now, some of the changes will be apparent very soon.
- Inflight announcement will be changed.
- The cabin crew will now be seen in smart dress.
- Company’s priority is work on flight delays. Now the flight gate will be closed 10 minutes before the departure.
- The cabin will be upgraded.
- Tata Group has said that initially it will provide free food on 5 flights. Tata Group said that later the free meal will be increased in a phased manner.
In the first phase, the Tata Group will work on a plan to bring this company from loss to profit. After that, Tata will work to get rid of debt and there is a possibility that the company get listed. 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.