Since 1948, Air India had been the flagship government-owned airline that operated domestic and international flights, cargo, and more. After years of excellent service and gross profits, the company started facing losses due to mismanagement, internal scams, and an overall decline in performance and popularity. Several attempts were made since the 2000s, to recover those losses as the government was proposing partial privatization of Air India. In 2007, when Air India had its merger with Indian Airlines, the combined debt rose from ?7.7 billion to ?72 Billion. Though the airline was invited to join the STAR Alliance in the same year due to its exceptional performance and services, it failed to meet the minimum standards for the membership, and the invitation was suspended by 2011.

 

In 2013, Ajit Singh (Civil Aviation Minister) had suggested the reprivatization of Air India. By 2017, this decision was approved, and several offers had been made in the form of EOIs to implement it, but private buyers were reluctant, and no bids were made. The Government of India, after several attempts at selling the debt-laden Air India, had finally settled on the buyer on 8 October 2021. The Talace Private Ltd., a Tata Sons SPV, won the bid against Spice Jet for INR18000 Cr ($2.4 billion) for Air India, Air India Express, and a 50% stake in AISATS (a terminal management system by Singapore Airlines. While this current deal strengthens the survival, performance, and profits of Air India through Tata Sons, the significance of Tata Group and its connection to aviation and Air India predates back to the pre-independence era.

 

Air India and Tata’s connection go way back into the 20th century, and Air India as we know it today was founded by J.R.D Tata as Tata Airlines back in 1932. Tata won a contract with Imperial Airways, as Jehangir Tata himself flew the de Havilland Puss Moth, a single-engine airplane carrying airmail from Karachi to Bombay. In its first year of operation, it flew over 260000 Km and secured a profit of 60000 Rs. It expanded to domestic passenger airlines after 1939, and had a significant contribution to the Royal Air Force, with troop movements, strategic supply chains, rescue, and maintenance-related objectives.

 

After WW2 ended, Tata Airlines was established as a Public Limited Company, under the name “Air India”, as the GoI purchased a 49% stake after our independence. By 1953, under the Air Corporations Act, GoI took over 51% stake, and commenced international flights under the ‘Air India International Limited’, and continued domestic flights under Indian Airlines. Till 1977, the government held the position of Chairman within the department, as the name was truncated to Air India. By the 1960s, this was the first Asian airline company to have entered the ‘Jet-Age’, with its fleet of Boeing 707-420, and by 1962, it became the “World’s First All Jet Airline”. The Boeing 747-200B, Boeing 747-400, and Airbus A310-300 jet airplanes were added to its fleet, serving domestic and international passengers, and transporting the cargo with it.

 

As a premier airline company with cutting-edge technologies, Air India continues to serve billions of passengers for their domestic and international flights. Tata Sons have made strategic mergers/collaborations with Singapore Airlines, and Malaysia’s AirAsia, along with the recent one with Air India, as the organization will continue to serve, and revolutionize air travel, transport and cargo.

The fast-paced and accurate technologies that these airline companies incorporate for managing processes and sections of air travel, only innovation, and technological advancement can help companies stay afloat in the cut-throat competition. Managing the operational costs and service delays, manpower and business consulting, process planning, development, integration, and assignment becomes critical for every aviation company. RayMach Technologies serves these organizations by offering customized aviation software, systems, and solutions, and helps them improve their efficiency, accuracy, and reliability. RayMach also sends the best wishes to this new joint venture, which commemorates the era of advancement and innovation in the Indian Aviation domain, through Tata sons, Vistara Airlines, and Air India’s merger.