In January 2022, the Tata Group reacquired Air India, aiming to revitalize the struggling national carrier. Despite efforts, recent incidents have highlighted ongoing challenges in service quality and maintenance.
Recent Service Concerns
On February 22, 2025, Union Agriculture Minister Shivraj Singh Chouhan criticized Air India after being assigned a broken seat on a Bhopal-Delhi flight. He expressed disappointment, noting that he expected improved services under Tata’s management. Air India issued an apology and initiated an investigation into the matter.
Similarly, BJP spokesperson Jaiveer Shergill labelled Air India as the “worst airline,” citing issues like broken seats and poor customer service. These high-profile complaints underscore persistent operational deficiencies.
Operational Challenges
At the time of acquisition, Air India was burdened with a debt of ₹61,562 crore (approximately $8.2 billion). The Tata Group assumed ₹15,300 crore of this debt, with the remaining ₹46,262 crore transferred to Air India Asset Holding Limited (AIAHL).
Post-acquisition, Tata faced challenges, notably the suboptimal condition of Air India’s fleet. Reports indicated that a significant portion of the aircraft had not undergone proper maintenance before being reinstated into service, leading to operational disruptions. Additionally, approximately 95% of previously unused aircraft were reintroduced without comprehensive interior refurbishments, affecting the passenger experience.
Strategic Initiatives
To address these issues, Tata has implemented several measures:
- Fleet Modernization: Air India has placed substantial orders for new aircraft, including 470 jets from Boeing and Airbus, aiming to replace ageing planes and enhance service quality.
- Mergers and Consolidation: Plans are underway to merge Air India with Vistara, another Tata-owned airline known for its superior service standards. This merger aims to consolidate resources, streamline operations, and create a more competitive entity in both domestic and international markets.
Public Accountability and Regulatory Measures
Enhancing transparency and accountability has been a focal point. Tata has committed to regular public disclosures regarding Air India’s performance metrics and improvement plans. Collaborations with aviation regulatory bodies ensure that maintenance protocols and safety standards are rigorously upheld, fostering public trust.
Impact on Tata’s Reputation
The acquisition has been a double-edged sword for Tata’s reputation:
- Positive Perception: The move was initially lauded as a patriotic endeavour, reflecting Tata’s commitment to national interests and its capability to manage large-scale turnarounds.
- Operational Criticisms: Persistent issues such as flight delays, maintenance shortcomings, and service quality have attracted negative attention. These challenges have raised questions about Tata’s ability to swiftly and effectively revamp the airline.
Conclusion
Reviving Air India is a monumental task that tests Tata’s strategic acumen and operational expertise. While significant strides have been made in addressing financial and structural challenges, ongoing operational issues highlight the complexity of transforming a legacy carrier. The success of this venture will significantly influence Tata’s legacy and set a precedent for large-scale corporate turnarounds in India’s aviation sector.