Air India renaissance under the Tata Group

When the Tata Group reclaimed Air India in October 2021, paying $2.4 billion (₹18,000 crore) to reacquire the airline it had founded in 1932, it inherited a carrier that was under tremendous burden. Once celebrated for its Maharaja mascot and luxurious service, Air India has accrued losses of over $12 billion (₹998.4 billion) since 2007 and ranked among the world's most bailed-out airlines. Yet, under Tata's stewardship, Air India has embarked on one of aviation's most ambitious turnarounds, blending nostalgia with cutting-edge strategy to reclaim its position as a global aviation powerhouse.

- NIDHI SHARMA reports

What takes five to eight years in other countries was done in just over two years in India.

When the Tata Group conglomerate reclaimed Air India in January 2022 after a 69-year hiatus, it marked not just a corporate homecoming but the beginning of one of the most audacious turnarounds in global aviation history. The acquisition, finalised at $2.4 billion (₹18,000 crore), was steeped in symbolism. The Tatas, who founded Air India in 1932 as Tata Airlines before nationalisation in 1953, were now tasked with resurrecting an airline which at the time of the takeover was a shadow of its former self.

Picture this! A bloated entity drowning in $8.2 billion (₹61,562 crores) of debt, operating creaking aircraft with an average age of 14 years and haemorrhaging $2.7 million (₹20 crores) daily. Its on-time performance (OTP) languished at 58 per cent, cancellations plagued four per cent of flights and passenger grievances had soared to 32 complaints per 10,000 travellers, the worst among Indian carriers. The airline's workforce, at 12,000 employees (including 1,600 pilots), was riddled with union disputes and productivity metrics 40 per cent below industry standards.

To grasp the scale of Tata's challenge, one must first understand the abyss Air India had fallen into. Between 2009 and 2021, the airline accumulated losses of $15.6 billion (₹1.17 lakh crore), surviving only on taxpayer bailouts. A disastrous 2005 merger with Indian Airlines—forced by the government—created a Frankenstein entity with duplicated routes, clashing cultures, and a fleet mix of 128 aircraft spanning Airbus A320s, Boeing 777s, and antiquated 747 jumbos.