Tracing Air India

Tracing Air India’s eight-decade-long journey

The article first appeared in Hindustan Times on January 27, 2022.

Air India, a name synonymous with India’s aviation history, has had a storied journey over eight decades. Founded in 1932 by visionary industrialist Jehangir Ratanji Dadabhoy (JRD) Tata, the airline began as Tata Airlines. In its early years, it set the standard for service and reliability, quickly establishing itself as a symbol of pride for the nation. Over the decades, it evolved into India’s flagship international carrier, becoming a key player in connecting the country to the world.

In 1953, the government of India nationalized Air India along with other domestic airlines, creating two separate corporations: Indian Airlines for domestic routes and Air India International for international operations. The latter was rebranded as Air India in 1962. While it continued to be a vital player in global aviation, the airline faced mounting financial and operational challenges over time, partly due to rising competition and mismanagement.

Efforts to privatize the struggling carrier began as early as 2001 under the leadership of then Prime Minister Atal Bihari Vajpayee. The government proposed selling a 40% stake in the airline, and several entities, including Singapore Airlines and the Tata Group, expressed interest. However, the process faced multiple hurdles and failed to materialize. Subsequent attempts to disinvest in later years also fell short.

The disinvestment drive gained renewed momentum in 2017, with the government adopting a more aggressive approach to address the airline’s growing debt and operational inefficiencies. Despite initial setbacks, the process culminated in October 2021, when the government announced that Tata Group’s bid had been accepted. The acquisition marked a historic moment as Air India returned to its founding family after nearly 70 years.

Today, the Tata Group is poised to reinvigorate Air India, leveraging its deep expertise in business and customer service to restore the airline’s former glory. This transition represents a full-circle moment in Indian aviation history, as the legacy of JRD Tata continues to guide the airline’s path forward. The government’s successful handover underscores a significant milestone in India’s economic reforms and privatization efforts, heralding a new era for Air India under the stewardship of its original founders.

Read more: Hindustan Times

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