A lot will change from this year for the country’s aviation industry of 1.2 lakh crore rupees. Government company Air India will become private from today, i.e. January 27, 2022. After buying Air India, Tata will become the second-largest airline. Before the handover of Air India, the chairman of Tata Sons will meet PM Modi.
At the same time, Air India has many vital flights on domestic and international routes. In such a situation, it can be said that travellers doing domestic and international travel can get better facilities with the new management.
Let us know how Air India started, how it came from Tata to Government and from Government to Tata again. How the entire aviation industry will change, and how will it benefit the passengers.
Air India was started in 1932
Talking about the history of Air India, it started in April 1932. Industrialist JRD Tata founded it. At that time, the name was Tata Airlines. JRD Tata first flew an aeroplane in 1919 at the age of 15, but the hobby became a passion, and JRD Tata took his pilot’s license.
First flight on October 15 1932
The airline’s first commercial flight took off on October 15 1932. Then there was the only single-engined ‘Heavyland Puss Moth’ aeroplane, which went to Mumbai via Ahmedabad-Karachi. There was no single passenger on the plane, but there were 25 kg letters. The letters were brought from London by Imperial Airways to Karachi. This airway was the royal aircraft of Britain. After this, in 1933, Tata Airlines took the first flight with passengers. Tata set up the company at the cost of two lakh rupees.
Air India was named after the Second World War.
After the Second World War, regular flights were started from India and then it was named Air India. It was made a public sector company. After independence in 1947, there was a need for a national airline. The Government of India took a 49% stake in it. After this, in 1953, the Government of India passed the Air Corporation Act and bought a majority stake in the company from the Tata group. In this way, it became a government company utterly.
The deficit started when it was nationalized in 1954; the government formed two companies. Indian Airlines was fixed for domestic service and Air India for the overseas route. The company remained profitable till the year 2000. For the first time in 2001, it lost Rs 57 crore. Then the Ministry of Aviation, blaming the then MD Michael Mascarenhas, was removed from the post.
Indian Airlines amalgamated in 2007 Air India was merged with Indian Airlines in the year 2007. At that time, the loss of both was Rs 771 crore. Before getting it, Indian Air Lines was at a loss of 230 crores. At the same time, Air India was in loss of 541 crores. Since then, the losses continued to increase, and the company continued to take loans on debt.
Loss exceeded 12 thousand crores.
In 2009-10, its loss increased to 12 thousand crores. One reason for the failure was that the decision to purchase 111 aircraft in 2005 became a crisis for Air India. Seventy thousand crores were spent on this deal. The second reason was that the new airline companies adopted the strategy of low fares from customer service during this time. In this too, Air India lagged. Often this company is known for latency.
Aircraft of private companies used to fly at least 14 hours a day, while Air India aircraft used to fly for 10 hours. On the other hand, on the route where private companies were reluctant to provide service, Air India was run on the way, which used to be a loss-making route.
The most prominent feature of Air India is that it still orders food from the five-star hotel Taj. This Taj’s catering service contains Taj Sats to deliver food on the plane. Now that all airlines provide free water only, Air India still offers free food and snacks.
Ashtrays used to give gifts.
In 1967, ashtrays were given as gifts to passengers in Air India. JRD Tata himself chose the initial logo of Air India. It was the sign of Dhanu, who was seen running a bow in a circle of Konark. Its theme has been red and white since its inception. Its logo was changed in 2007. Now it is like a red coloured flying swan, in which Konark Chakra is attached. The mascot of Air India is Maharaja.
The logo was made to look more youthful.
In 2015 it was shown to be more youthful. Along with the dhoti turban, he also started wearing jeans and suits. Air hostess branded in a traditional Indian saree. This image of Air India continues unabated.
10.5 crore people travel
In 2021, a total of 10.5 crore people travelled on domestic routes. India is the third-largest aviation market in the world. It is an industry of Rs 1.20 lakh crore. The International Air Transport Association (IATA) estimates that by 2030, India can overtake China and the US in this matter.
Expected investment of 35 thousand crores in 4 years
It is estimated that an investment of 35 thousand crores will come in this industry in the next four years. The Government of India has planned an investment of Rs 14,000 crore by 2026, which will be spent on developing airport infrastructure.
The future and challenges of Air India
In fact, in the first phase, the Tata Group will plan to turn this company from loss to profit. After this, it will be rid of debt, and it may be possible to get it listed in the market by bringing its IPO. However, this will happen only when the company can recover from the loss because its valuation will be after that. Tata Group may shut it down on a loss-making route. This will also help in reducing debt. Air India currently has 114 aircraft. Of this, 42 are on the lease, and he owns 99.
Experts say that the Tata Group’s work will take this company to a new height. Because he has a deep attachment to it, Ratan Tata had also told about buying Air India many times. They were also about to start airlines in 1990 but could not succeed.
The board meeting was on Friday Last Friday.
The board meeting of the company. In that, Vikram Dev was made the new chairman. This way, those who are currently board members will resign, and at the end of the month, Tata will have its new board. The Tata Group will become the second-largest airline player in the aviation market with 25-30%.
Tales will run air India.
In October last year, Tata Group’s Tales Private Limited won the tender to buy Air India. Tales will run Tata’s airline business. A bid of Rs 18,000 crore was made for this. Along with Air India Express, the Tata Group also holds a 50% stake in SATS. Air India Sats does the work of ground handling.
In October itself, Akasa also got NOC.
Incidentally, in October, the Tata Group won the bid for Air India. In the same month, the legendary investor Rakesh Jhunjhunwala’s Akasa also got a No Objection Certificate (NOC) from the government. It is believed that Akasa will start flying by May. In September 2021, Jet Set Go also announced plans to launch its flights by 2024.
Ordered 72 Boeing Akasa Air, the ultra-low-cost airline of stock market big bull Rakesh Jhunjhunwala, has ordered 72 Boeing 737 MAX jets. This order was given in the air show being held in Dubai. The total cost of these planes is $9 billion. The delivery of the aircraft will start from this year itself. Vinay Dubey, CEO of the company, said, “We believe that the new 737 MAX aircraft will support our goal of not only running an affordable airline but also making Akasa an environment-friendly company.
There will be 18 air crafts.
They say that in 2022-23 we will have 18 aircraft. There will be 14-16 aircraft in the next year. The total cost of these planes is $ 9 billion. 72 aircraft are planned in five years. They say we will run a budget carrier. Our main plan is to provide good service to our customers which will be affordable. The company expects to get the first aircraft in the second fortnight of April. The first commercial flight can start in June.
Initially focused on metros.
The company will initially provide services in Mumbai, Delhi, Bangalore. The company will first run flights on the international route to neighbouring countries. Then it will expand to South Asia and Middle East countries.
Jet’s fleet to induct 50 aircraft in 3 years. The new promoters of Jet Airways 2.0 expect to induct 50 aircraft in the next three years. Jet Airways was grounded in April 2019 due to being in debt. Earlier, the airline had the status of the largest private airline in the South Asian nation. The arrival of Akasa could create the same kind of scarcity as it did after the launch of Kingfisher Airways in 2005-06.
Jet Airways Preparation
Jet Airways is preparing to fly again. Jalan Kalrock’s group has taken it. There is a preparation to induct 100 aircraft in 5 years. It will be started by May of this year with 1 thousand employees. However, landing and parking slots will face difficulties in taking it.
The government is also doing work.
In this industry, the government is also working on giving benefits. In 2017, he started Ude Aam Aadmi ie Udaan. This means connecting small airports and starting the flight there. This work has been done on more than 370 routes. So far, Rs 3,550 crore has been spent on this.
There may be a fall in fares.
Experts believe that with the arrival of these airlines, there may be a decline in airfare immediately. This will directly benefit passengers. However, it may take 2-3 years when these airlines scale up their scales.
IndiGo is the leader in the aviation market, with a fleet of approximately 278 aircraft. Its market share was around 50% as of October 2021. It can compete with Akasa Jet Airways 2.0 and Air India in the coming days.
It is challenging to get prime slots on busy air routes. It is also worth noting that both Akasa and Jet Airways 2.0 will find it challenging to get prime slots on busy air routes like Mumbai soon after their launch. Due to this, they may face some trouble. Air India has a fleet of 117 aircraft. There are 4400 domestic and 1800 international landing and parking slots. However, it will have first to repay the loan of Rs 23 thousand crores. Then it has to come in profit, and after that, it has to make its position in the market.