The Tata Group is all set to operate Air India officially from Thursday, January 27 as the divestment process was successful, according to repots. The national carrier got officially handed over to the Tata Group on the day, hours after the company’s chairman N. Chandrasekaran met Prime Minister Narendra Modi.
“We are very happy to have Air India back in the #TataGroup. We look forward to working with everyone in creating a world class airline,” said Chandrasekaran after the official handover, according to CNBC TV18.
The divestment process comes months after the Tata Group acquired Air India by placing a bid of Rs 18,000 crore after the government sought to sell 100 per cent stake of the erstwhile national carrier. The bidding process was done last year and following the win, the Tata Group came into full swing to take charge at Air India.
From chalking out dates to take over Air India completely, to appointing officers — the Ratan Tata-owned firm has been doing everything to revamp the airline company which had been struggling to keep up with the aviation business for quite some time.
The Tata Group has a host of plans after gaining reins of the national carrier, which JRD Tata had established in 1932.
According to sources at CNBC-TV18, a new board will be constituted on Thursday after Air India is handed over to the Tata Group. The business conglomerate is also in talks with an expat from the global aviation industry who is likely to be appointed at Air India. Reports also suggest that the group is looking to onboard aviation industry veteran Fred Reid as the Chief Executive Officer (CEO) of Air India. However, some Air India senior executives may continue until their replacements are hired.
Apart from the CEO, Tata Sons is also looking for other major officials. The industry conglomerate is considering making Nipun Aggarwal the Chief Financial Officer of Air India, The Hindu BusinessLine said in an earlier report quoting sources.
Sources at CNBC-TV18 also suggested that the Tata Group is planning to merge Air Asia India and Air India Express — both of which are low cost airlines. The Air India Express- Air Asia India merger is likely next week, as per the sources.
The Tata Group, apart from its organisational changes, is also looking to enhance the flyers’ experience. The group is likely to introduce “enhanced meal service” on four flights that will operate from Mumbai, said officials in the know. The service will be provided on four flights including the AI864 (Mumbai-Delhi), AI687 (Mumbai-Delhi), AI945 (Mumbai-Abu Dhabi) and AI639 (Mumbai-Bengaluru) — from Thursday.
According to CNBC, there will also be changes in the grooming SOPs of the cabin crew. As per a News18 report, the Air India in an email said that the “crew has to be smartly dressed, adhering to regulations. Grooming associates will be observing the crew for the above. On-time performance is important. All endeavors to close doors at D (departure time) minus 10 minutes.”
Efforts will also be made to improve on-time performance of Air India, while there will be changes in in-flight announcements too. There is also a possibility of a special recorded message from Tata Sons Chairman Emeritus Ratan Tata on flights.
However, revamping aircraft interiors, fleet will take time, the sources at CNBC-TV18 said.
After the acquisition, Tata Group will have access to a fleet of 117 wide-body and narrow-body aircraft, and 24 narrow-body aircraft of Air India Express. Besides, it will get control of 4,400 domestic and 1,800 international landing, and parking slots at domestic airports.
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