Air India Comes Back to Tata

Air India makes a comeback to its founders after 68 years. In 1932, J. R. D. Tata founded Tata Air Services, later renamed Tata Airlines, which is the precursor of Air India. Back then, J.R.D Tata, an Indian aviator as well as a business aspirant, started flying between Madras and Karachi via Bombay and Ahmedabad. More destinations, such as Colombo and Delhi have been added soon after, and Tata Airlines soon became a popular choice of airways.

Tata Airlines expanded beyond the borders of India to foreign countries, and it did well to connect every nook and corner of the country back in the pre-independence era. It also contributed to World War 2, giving aeroplanes for military evacuation services to the Royal Air Force. After Independence, the Government of India took a 49% stake in Tata Airlines, which now came to be known as Air India, and in 1953, PM Jawaharlal Nehru nationalised Tata Airlines by passing the Air Corporations Act.

In a way, after 68 long years after 1953, Tata is all set to acquire the renowned air carrier. Initial attempts to make Air India private started way back in 2001. However, it got delayed, and Air India started to operate on losses which became a huge burden to the Government of India. Finally, 100% privatisation of Air India was looked upon as the best solution for Air India. The complete privatisation process is expected to take place by December 2021. Tata will be the sole owner of Air India as of now.

Privatisation has been a theatre of debate in the recent past when India is moving towards capitalism and looking to privatise its stakes in Government sectors. While private sectors will call for better facilities, greater passenger amenities, and user friendly, it has also irked some employees who feel their jobs are not secure anymore. Privatisation may also weaken a transportation company like Air India, which may opt for cancellation of loss-making routes, or shut down services. The main question is whether Air India after privatisation can operate from the most remote parts of the country, and win confidence among the employees. Let us know your opinion in the comment section below.

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