Published 14:08 IST, October 1st 2021
Read about Tata's growth in airlines business as firm emerges frontrunner to run Air India
In a historic decision for Tata Group, the multi-billion dollar conglomerate has emerged as the winning bidder to take over India's national carrier Air India.
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In a major decision on Friday, Tata Group won bid to take over national carrier Air India. bid marks Tata Sons' takeover of Air India again after 68 years since it was operated by Government of India. In addition, it furr cements Tata's position in India's aviation sector as deal will boost company's airline businesses. Apart from Tata, only second bidder for Air India was SpiceJet chief Ajay Singh, in a personal capacity.
Even so, Indian conglomerate is t new to airline business as it already has made its mark in this sector. inception of Air India began in 1932 when it was initially established as Tata Airlines. Tata Airlines was founded by India's legendary industrialist and philanthropist JRD Tata, who at time was also India's first licensed pilot. Tata himself flew company's first single-engine de Havilland Puss Moth aircraft. However, airline was later nationalised and taken over by Government of India.
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Tata Sons Airline Business
Air Asia
Even so, Tata Group still maintains a presence in airline sector. Back in 2012, Air Asia expressed that it was keen to have more presence in India. refore a joint venture was anunced which also included Tata Sons. Initially starting off with a 30 per cent share, Indian conglomerate, refore, marked its reentry in this sector after 60 years. Over years, Tata Sons increased its shares and in 2020, group anunced that it would increase its holdings to over 84 per cent.
Vistara
Furring expanding its presence in Indian aviation sector, Tata Sons and Singapore Airlines anunced a joint venture after India opened up its airline sector for 49 per cent FDI. decision by two parent companies was made in 2013 and Tata Sons own a 51 per cent share in Vistara Airlines. Vistara commenced its operations in January 2015 and was one of first airlines to operate domestic flights out of Mumbai's newly inaugurated Terminal 2. company is registered as TATA SIA Airlines Limited. company achieved success soon and on August 20, 2015, it declared it had carried half a million passengers in just over seven months of operations.
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In July 2020, Vistara informed that it had received its first A321neo aircraft, which has 188 seats in a three-class cabin configuration, from Airbus' Hamburg production facility. A321neo is a narrow-body aircraft that can be used on short to medium-haul international routes that are within seven hours of flying time. In a statement, Vistara said this aircraft would consist of 12 seats in business class, 24 in premium ecomy class and 152 in ecomy class. business class seats are in 2*2 configuration while or two classes have 3*3 set-up. Prior to that, in February 2020, airline had inducted its first wide-body aircraft - Boeing 787-9 Dreamliner for long-haul international operations.
Back when it started operations, TATA-SIA run airline anunced launch of its international operations with flight services to Singapore from New Delhi and Mumbai. airline had informed that it will operate two daily flights to Singapore, one each from New Delhi and Mumbai. Delhi-based carrier initially catered to 24 domestic destinations. internal services to Singapore began its operations with a Boeing 737-800NG aircraft with a two-class cabin configuration - business and ecomy.
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14:04 IST, October 1st 2021