Challenges Abound As Tata Draws Up A Flight Plan For Air India
NDTV
Tata Sons' $2.4 billion purchase of debt-ridden, government-owned Air India will give the conglomerate immediate access to valuable flying rights and landing slots that will help it claw back market share from foreign rivals.
New Delhi: Tata Sons' $2.4 billion purchase of debt-ridden, government-owned Air India will give the conglomerate immediate access to valuable flying rights and landing slots that will help it claw back market share from foreign rivals.
But industry executives warn any success will be a long and complicated process that could cost it more than $1 billion and require fixing myriad problems, including its worn-out fleet, poor service and the lack of a charismatic leader.
Air India, with its maharajah mascot, was once renowned for its lavishly decorated planes and stellar service championed by the airline's founder, JRD Tata, India's first commercial pilot. But the mid-2000s, its reputation has fallen as financial troubles mounted.
It flew widebody planes with business class seats in poor repair and grounded some of its new Boeing Co 787 Dreamliners to use for spare parts.
