Chandra’s top priority is to get a professional CEO for the airline, who can then put a team of proven aviation personnel for turning around the fortunes of Air India — seen as one of the most challenging turnarounds in contemporary aviation
Tata Sons Chief, N Chandrasekaran, will be the Chairman of Air India. His appointment was approved at a board meeting in Delhi on Monday March 14, according to knowledgeable sources quoted by ET.
General Insurance Corporation former CMD Alice GeeVarghese Vaidyan will be inducted on the airline board as an independent Director.
It may be pointed out that Air India’s founder J R D Tata was the airline’s chief for decades after its nationalisation. He was moved from the post in February 1978 by the Morarji Desai government. In 1982, the Indira Gandhi government reappointed JRD to the board of AirIndia (as it was written then with the hyphen). His successor, Ratan Tata, was AI Chairman from 1986-87 till early 1990.
After 32 years, the head of the Tata Group is back again at the helm of AI. Chandra’s top priority is to get a professional CEO for the airline, who can then put a team of proven aviation personnel for turning around the fortunes of Air India — seen as one of the most challenging turnarounds in contemporary aviation. Industry insiders caution the Tatas should not make the same mistake that the government did when the latter ran AI.
“Under government control, clueless bureaucrats who had little or no knowledge of aviation — with a few honourable exceptions — ran the airline. The lack of professionals running AI led to its ruin. We get nostalgic about JRD era of AI but that was then. The Tata’s second stint in aviation, that started with JVs AirAsia India taking off in 2014 and then Vistara a year later, has not been profitable so far. The people at the top of Tata JVs are not dyed-in-the-wool aviation professionals and the effect is showing,” ET quoted an Air India old-timer who did not wish to be named.
The pandemic figures from aviation regulator Directorate General of Civil Aviation for July-September 2021, show Indian carriers’ share rising to 48.1 per cent and foreign carriers’ falling to 51.9 per cent. AI (14.5 per cent) and AI Express’ (11.8 per cent) combined share in this period rose by 40 per cent to 26.3 per cent. And on a standalone basis, AI had the highest international market share
A new CEO, with a proven track record in aviation, is expected to put in place a team of professionals. The Chairman has been taking personal interest in the airline. He has been taking detailed presentations from all board members since last week, according to officials.
Outlining Tata’s vision for the airline they founded, Chandra had recently promised to make “AI the world class airline it deserves to be” and “absolutely best in class” in customer service, technology, fleet, network and “best possible hospitality both in flight and off flight.” All these will require a team of experts. AI, then, has to become a more attractive option to leverage its main strength of medium/long and ultra-long haul international direct connectivity in terms of cabin comfort.
With regular international flights starting from March 27, people will again have the option of taking one-stops via nearby hubs to fly between India and rest of the world. The bubble system in place, from March 23, 2020 will end on March 26, 2022, meant less flights by foreign airlines.
DGCA data shows that in the last pre-pandemic quarter, October-December 2019, Indian carriers accounted for 39.2 per cent of international travel to and from India while foreign carriers’ share was 60.8 per cent. AI (11.5 per cent) and AI Express (7.3 per cent) share was 18.8 per cent. On a standalone basis, IndiGo had the highest international market share.
The pandemic figures from aviation regulator Directorate General of Civil Aviation for July-September 2021, show Indian carriers’ share rising to 48.1 per cent and foreign carriers’ falling to 51.9 per cent. AI (14.5 per cent) and AI Express’ (11.8 per cent) combined share in this period rose by 40 per cent to 26.3 per cent. And on a standalone basis, AI had the highest international market share.
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