Air India’s Three Years Under the Tatas: The Rise and Fall of the Maharajas

Air India is now a company of the Tata Group and completed its three-year handover to the Tata Group on January 27, 2025. The Tata Group won the bid for Air India in October 2021 and officially took over the airline in January 2022. While privatization brings hope of a renaissance for the troubled airline, the journey so far has been one of success and challenges. Here, we explore Air India’s rocky experience since returning to its original owners, the Tata family.

Aircraft orders

The airline has orders for 470 aircraft from Airbus and Boeing in 2023, and an additional 100 aircraft from Airbus last year. The order made clear the intent of expansion and its global ambitions. The airline has also started investing in the ecosystem, setting up a training academy in Gurgaon, followed by ordering trainer aircraft and setting up a training academy in Amravati, Maharashtra, which is expected to be launched later this year Put into operation.

merger

The group initially owned four airlines, one of which was founded in partnership with AirAsia Ltd. and Singapore Airlines, and the other two were its acquisitions of Air India and Air India Express. Last year, it merged the companies into two, merging the rebranded AIX Connect into Air India Express and Vistara into Air India. Singapore Airlines also acquired a 25.1% stake in Air India, a wholly-owned subsidiary of Air India Express.

The merger makes the group stronger and more focused than ever. Singapore Airlines’ experience of operating two different brands will help drive the growth of Air India and Air India Express and build collaboration between the two over time.

Network reorganization and expansion

Last year, we took a multi-pronged approach and suddenly pivoted. This includes shifting certain destinations and flights to Air India Express, starting A350 deployments and most importantly rejigging the network after the merger with Vistara.

The network reorganization will create two sets of flights on back-to-back routes between Air India and Vistara, while flights to Australia will also become the fastest option to Frankfurt from Sydney and Melbourne. The changes will also help to better connect London in many ways. Also, the focus remains on Delhi and establishing Delhi as a hub as it will divert some flights from Mumbai to Delhi.

technology

The airline has been investing in technology and this is a multi-pronged approach. Helping customers with technologies like new mobile apps, websites and in-flight steam and Wi-Fi; and on the engineering and maintenance side, new automated warehouses powered by cloud computing. The airline has also now installed an AI bot on its website to answer queries.

Aircraft transformation – a long way to go

If there is one area where Indian aviation is lacking, it is aircraft modification and introduction. The airline that brought in the former Delta and Etihad aircraft had announced the introduction of three Singapore Airlines B777s, but this never happened. Its first narrow-body aircraft modification will begin in September 2024 and is expected to be returned to service in December, but commercial operations have not yet begun. The much-publicized Dreamliner and B777 retrofit program has yet to take off despite multiple announcements, with the airline citing supply chain constraints as the reason. While the airline has at one point talked about repairing all of its premium seats, complaints about premium cabin issues crop up regularly on social media.

As a stopgap measure, the airline will invest in recarpeting some of its wide-body aircraft this year while retrofit work begins.

endnote

This huge investment not only makes Air India a major player in the global aviation market but also signals its intention to regain its lost glory. However, shiny new planes don’t solve all problems. Extremely service oriented

Under Tata’s stewardship, Air India has made great strides in enhancing customer experience. From an improved in-flight menu featuring gourmet cuisine to revamped aircraft interiors, the airline has been working towards aligning its service standards with global benchmarks. The reintroduction of premium economy class on select routes has also broadened its appeal to a diverse passenger base.

What does the future hold?

A growing premium airline is only as good as the choices it makes. The airline will need to significantly increase in-flight service and training to match the shiny hardware and promises made by the airline. It’s too early to discuss financials, but the airline is certainly tracking its unit costs, revenue and transit passengers. One difference between Air India and IndiGo is that Air India is investing heavily in the ecosystem and has a training academy, which is the first of its kind in India and not even an airline like IndiGo has.

As Air India prepares to celebrate its centenary in 2032, the stakes are high. The airline’s journey since privatization has been a mixture of promising growth and continued struggle. Whether it soars to new heights or is stifled by challenges will be a story to watch in the coming years.