Tata and Sons won the bid of Air India. Tata and sons bids 18 thousands crore. Spice jet bids more than 15 thousands crore at second place. Tata has already share in other air line. Tata owns 51 percent share Vistara air line and 84 percent share of Air Asia.
Now let us look current situation of Indian aviation industry.
Currently Indigo is biggest player in Indian aviation industry having 57.6 percent market share. Spice jet has 8.9 percent. Air India has 13.3 percent market share and Vistara and Air Asia has 4.4 percent of market share. Go First formerly known as Go Air has 6.8 percent market share.
So after the Air India privatization Tata group has market share of more than 25 percent.
Government has spends one lakh crore rupees on Air India in last 10 years. But the loss of Air India is 25 crore rupees per day. So the question is that why Tata has bid the Air India. How Tata will convert it into profit making venture. This is the biggest question now. We will answer it in details. If you read the whole blog you will find the answer.
As now Air India has in private hand so it will raise the coemption between existing air lines. Tata will surely give better services to customers to regain their customer base. They will surely improve the services like fooding, boarding and hospitality comfortable seats , cleaning same as other private air line. Tata will surely add new services and benefits to their passengers.
Now surely one question will arise that will Tata raise the fare of domestic flight? Answer is no as fare of domestic flight is manage by DGCA(Directorate General of Civil Aviation) which is government organization. But surely in services we can see improvement.
Government plays very significant role in this privatization. We all know that Air India was in massive debt. Also this is pandemic time where other air line facing tough time as their business directly impacted. There was the time when flights were cancelled. And in these conditions disinvestment of Air India is surely a good step. Now tax payers money will not spent on Air India.
Air India’s flights to all existing routes are remains unchanged and might be some other new routes will be added. There is government program called “UDAN” so all the flights which comes under this program will remain unaffected.
Currently Air India has more than 10 thousands employees. Tata group need to retain all the employees for one year and after that it can give VRS to some employee. All the other employee benefits like provident fund(P.F.), medical benefits, gratuity and all other benefits remains same and considered to be part of Tata group.
Ratan Tata shared welcome note for Air India on October 8, 2021 on his twitter account.
We all hope that Air India will bring back old glory and reaches the new height of success. Also we all hope that Tata will provide world class facility and services to the passengers.
