Tata Group faces long struggle to transform Air India

Significance

The deal is said to be worth USD70bn. The Tata Group acquired Air India from the government in January 2022. The airline has for years been a loss-making enterprise.

Impacts

• Losses incurred by the airline will probably be covered by profits from other Tata enterprises.
• Air India’s efforts to increase its market share will be aided greatly by its lucrative flying rights and premium landing slots.
• The airline will upgrade its staff and work on changing attitudes imbibed during its many years of public ownership.