Air India Returns to TATA


Adding 12% market share to TATA’s Aviation portfolio

Jehangir Ratanji Dadabhoy Tata founded Air India in 1932 and saw tremendous growth until the airline was nationalized in 1953. The Nehru government paid the company a sum of 2.8 cr to take over the operations of a successful business. The aviation industry has seen so many players come and go, but Air India managed to stay afloat for the longest time. The TATA group has paid over 18,00cr to bring the airline back to its founding home. 

The TATA group has two more airlines in their aviation business portfolio. Vistara is a joint venture with Singapore Airlines and a budget airline AirAsia India. After 70 years, the Maharaja is returning to the founders, who will now have complete control over Air India and 50% of AISATS, a ground handling company. Land and building assets will be transferred to Air Asset Holding Limited, owned by the Indian Government. 

‘Currently, India enjoys the status of being the third-largest domestic aviation market in the world’ 

Air India has a total of 12085 employees who will continue to be employed by the company for a minimum of one year. The aviation industry in India is fast growing and will emerge as the largest market for domestic air travel within the next few years. With travel restrictions being lifted and vaccination drives in full force, we can expect people to start traveling once again. 

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