Ratan Tata, the chairperson of Tata Trusts, has given the credits to bid for Air India to N Chandrasekaran, the chairman of the group. Ratan Tata said that the decision by Tata Sons was completely based on the research undertaken and completed by the ones under the leadership of N Chandrasekaran.
The holding company of the group, called Tata Sons, is known to have asked the counsel of Tata and its chairman during the time of putting up the successful bid. As such, Air India happens to be the biggest acquisitions at present under the leadership of the present management.
Ratan Tata has always been a major aviation buff and he even has pilot licenses for both helicopters and fixed-wing aircraft. He is known to take a keen interest in the ongoing global trends and changes in the aviation sector. Speaking on this topic, Tata agreed to his passion for aviation and stressed on how much he has enjoyed his time as a pilot on a wide variety of air crafts. However, he added that his involvement in the decision to forward a bid for Air India was purely emotional as he wanted to try and reestablish the brand to the kind of prominence and prestige it had earlier.
Air India: The brainchild of Jehangir Ratanji Dadabhoy Tata
Jehangir Ratanji Dadabhoy Tata had founded Air India back in 1932 and called it Tata Airlines. Fourteen years later, the aviation wing of Tata Sons got incorporated as Air India Eiretrip.com It took two more years for Air India International to launch its Europe flights.
This international service was particularly significant because it is one of the first PPPs in the country. The government held 49 percent, the Tatas kept 25 percent, and the rest was owned by the public. Air India was nationalized in 1953.
The challenge ahead for the new leadership
The experts believe that the challenge for the present leadership is to ensure a major improvement in the user experience to uplift the brand that has immense emotional attachment and visible connection with the consumers.
The earlier management team of the brand showed an uncaring and indifferent response to its consumers. Tatas will have to build the interpersonal skills of the aircraft crew. The transfer of ownership will only be successful if the consumer can see the brand in a new light under Tatas.
Another major challenge that Tatas will need to deal with is making sure that the airline brand has operational viability financially. There is no denying that the group now holds a prestigious brand with several challenges. The leadership will have to take special care in executing future policies.
The government has already issued the letter of intent to confirm the sale of 100% stake in the airline brand to Tata Group for INR 18,000 crore. Ratan Tata welcomed Air India back as Tata Sons won the bid to buy Air India. It is time now to wait and see what plans Tata Group has for the airline.
