Tata Airlines (now Air India) was founded in 1929 by JRD Tata, initially delivering mail by air. It became India's first international airline in 1948. After nationalization in 1953, Air India struggled with losses due to high costs, corruption, and new competition. In 2021, Tata Sons acquired Air India through its subsidiary Talace Pvt Ltd for $2.4 billion. To make Air India profitable again, in 2023 Tata signed the biggest aviation deal ever worth $82 billion to purchase 470 new Airbus and Boeing planes over 10 years.
Tata Airlines (now Air India) was founded in 1929 by JRD Tata, initially delivering mail by air. It became India's first international airline in 1948. After nationalization in 1953, Air India struggled with losses due to high costs, corruption, and new competition. In 2021, Tata Sons acquired Air India through its subsidiary Talace Pvt Ltd for $2.4 billion. To make Air India profitable again, in 2023 Tata signed the biggest aviation deal ever worth $82 billion to purchase 470 new Airbus and Boeing planes over 10 years.
Tata Airlines (now Air India) was founded in 1929 by JRD Tata, initially delivering mail by air. It became India's first international airline in 1948. After nationalization in 1953, Air India struggled with losses due to high costs, corruption, and new competition. In 2021, Tata Sons acquired Air India through its subsidiary Talace Pvt Ltd for $2.4 billion. To make Air India profitable again, in 2023 Tata signed the biggest aviation deal ever worth $82 billion to purchase 470 new Airbus and Boeing planes over 10 years.
Tata Airlines (now Air India) was founded in 1929 by JRD Tata, initially delivering mail by air. It became India's first international airline in 1948. After nationalization in 1953, Air India struggled with losses due to high costs, corruption, and new competition. In 2021, Tata Sons acquired Air India through its subsidiary Talace Pvt Ltd for $2.4 billion. To make Air India profitable again, in 2023 Tata signed the biggest aviation deal ever worth $82 billion to purchase 470 new Airbus and Boeing planes over 10 years.
▪ 1929 – JRD Tata – First Airlines Service in India ▪ Initially they Only deliver Mail ▪ Tata flew a consignment of mail from Karachi to Juhu Airport ▪ But JRD Tata not want to their Airlines only deliver letters ▪ 1948 – International flight – Mumbai to London ▪ JRD Tata himself used to fly airplanes himself or even go as a passenger so that he could know the quality of his airline. ▪ Luxury Travel, World class food – “Palace in the sky” ▪ Due to which Singapore Airline was inspired from TATA Airlines
🔹 Nationalization ▪ 1953 – Jawaharlal Nehru – Nationalization ▪ For Consideration Of 2.5 cr ▪ Name Change – Tata Airlines to Air India ▪ 1978 - A plane crashed near the ocean 213 passengers and all crew die ▪ Because of this, Morarji Desai removed JRD Tata from his post as chairman ▪ The absence of JBR Tata has replaced technical experience & Business Acumen with a political equation.
🔹 Profit making ⏩⏩ loss making
▪ 1992 – Air India had a monopoly type market due to which its 🔹 profit➡️333 cr. 🔹 Reserve ➡️2000 cr. ▪ But After 1992 all the other airline companies started coming and the competition started increasing ▪ 2000 – Atal Bihari Vahpayee predicted that these airlines were going to lose and they wanted to privatize them, But the Aviation Minister Sharad Yadav did not agree for that. ▪ 2006 - Atal Bihari Vajpayee's predictions came true and Air India went into losses 🔹 Reason for losses ⏬ #1. Burden of employees #2. Free ticket for their employee #3. Purchasing and maintenance at very high price- corruption #4. Engine - not overhaul #5. Competition after 2000s #6. Not buying a new plane after 2006
🔹 Acquisition by Tata ▪ 8th Oct.2021 – TATA Sons Acquired Air India through its subsidiary Talace pvt.Ltd. ▪ With consideration of 18000 cr. & The government will pay a liability of three rupees 33000 cr.
But why Tata acquire this lost making airline
▪ Family heritage ▪ Number of plane⬆️-------market share⬆️-------profit ⬆️ ▪ Tata’s airline partner Singapore airline (expertise and experience)
🔹 Loss making ⏩⏩ profit making - step taken by Tata
▪ To make it profitable TATA’s Deal ▪ 14th February 2023 - Tata deal with Airbus and Boeing ▪ It was a deal of 470 new planes + 370 planes purchasing right for 10 year with consideration of 82 billion dollar ▪ This is a biggest deal in aviation sector till now
Why Airbus and Boeing accept that deal of loss making airline
▪ Reliance on Tata ▪ He knew that Tata's internal control was the best ▪ Tata’s other airline is one of the best airlines
