Tata Sons Chairman Emphasizes Air India’s Transformative Role

Tata Sons Chairman N Chandrasekaran has described the acquisition of Air India as a significant obligation rather than merely a business venture. Speaking at an event in Mumbai on the occasion of the 121st birth anniversary of Tata Group founder JRD Tata, he emphasized the transformation of Air India and the responsibilities that come with it.

When Tata Group purchased Air India in 2022, questions arose regarding the company’s entry into the aviation sector. Chandrasekaran firmly stated, “For Tata Group, Air India is not just a business opportunity. It’s a responsibility.” He underscored the interconnection between economic growth and the aviation industry, noting that every percentage point increase in India’s GDP correlates with a 2% rise in domestic aviation. He projected that if India achieves an 8% GDP growth, the aviation sector could expand by 16%.

Chandrasekaran acknowledged the challenges the aviation industry faces, including unpredictable global supply chains affecting parts availability, infrastructure, and new aircraft deliveries. He pointed out that aviation is a capital-intensive sector with narrow profit margins, making sustainable operations increasingly complex.

During his address, he highlighted India’s status as the fourth-largest economy, on track to become the third largest. He described the 8.2% GDP growth reported in the July-September quarter as “just fabulous” and forecasted a growth rate of at least 7% for the current fiscal year. He attributed this positive outlook to rising consumer confidence, consumption-led growth, and increased public infrastructure investment.

Chandrasekaran stressed the need for improved connectivity to facilitate India’s transition to a $5 trillion economy. He asserted that achieving this milestone will require addressing various industry challenges. He mentioned the impact of geopolitics on flight routes, stating that sudden changes in air traffic regulations could lead to longer flights and increased fuel costs.

Despite these hurdles, Chandrasekaran expressed optimism about the demand for air travel. He noted that as aspirations for connectivity grow among the Indian population, his commitment remains to build a world-class airline. He concluded with a vision for the future, stating that the pace of economic expansion would accelerate, creating numerous opportunities within the aviation sector.