Air India's post-privatisation turnaround stalled
AVIATION & AIRPORTS

Air India's post-privatisation turnaround stalled

In January 2022, it was reported that Tata Group had taken over Air India from the government, sparking hopes for India's debt-ridden, loss-making, and grossly inefficient flag carrier, which had been run into the ground by successive governments. Two years later, it was revealed that Tata was facing challenges in its efforts to turn the airline around. Despite having a roadmap to restore its former glory, Tata was struggling with the process of merging its four airlines: Vistara, jointly owned with Singapore Airlines, and Air India into a full-service carrier, and Air India Express with AIX Connect into a low-cost airline. Despite implementing several measures to revive the struggling airline, Tata had yet to bring it back to the prestigious status it once held before its nationalisation in 1953.

A potential obstacle to the merger emerged as Air India encountered various difficulties on its transformational journey. The merger of Vistara with Air India encountered a setback when Vistara pilots initiated a strike. Since April 1, Vistara had cancelled more than 125 flights due to a number of its pilots taking sick leave at the end of March. Some of these pilots were protesting against a downward revision in pay ahead of the merger with Air India later in the year, citing growing fatigue from a busy schedule. Vistara's CEO Vinod Kannan stated that operations were expected to return to normal by May as the issues causing flight disruptions, primarily a stretched pilot roster, were being addressed. Kannan apologised to affected customers and emphasized that such disruptions were not typical of the airline's service standards.

In January 2022, it was reported that Tata Group had taken over Air India from the government, sparking hopes for India's debt-ridden, loss-making, and grossly inefficient flag carrier, which had been run into the ground by successive governments. Two years later, it was revealed that Tata was facing challenges in its efforts to turn the airline around. Despite having a roadmap to restore its former glory, Tata was struggling with the process of merging its four airlines: Vistara, jointly owned with Singapore Airlines, and Air India into a full-service carrier, and Air India Express with AIX Connect into a low-cost airline. Despite implementing several measures to revive the struggling airline, Tata had yet to bring it back to the prestigious status it once held before its nationalisation in 1953. A potential obstacle to the merger emerged as Air India encountered various difficulties on its transformational journey. The merger of Vistara with Air India encountered a setback when Vistara pilots initiated a strike. Since April 1, Vistara had cancelled more than 125 flights due to a number of its pilots taking sick leave at the end of March. Some of these pilots were protesting against a downward revision in pay ahead of the merger with Air India later in the year, citing growing fatigue from a busy schedule. Vistara's CEO Vinod Kannan stated that operations were expected to return to normal by May as the issues causing flight disruptions, primarily a stretched pilot roster, were being addressed. Kannan apologised to affected customers and emphasized that such disruptions were not typical of the airline's service standards.

Next Story
Infrastructure Urban

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Next Story
Infrastructure Energy

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Next Story
Real Estate

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement