Your Email

Pasword

Ratan Tata is a Harvard Business School graduate and one of the top guns in Indian as well as global market. This business tycoon has achieved tremendous success and has carried on the legacy of his family business. TATA is everywhere and it has services in different fields such as Tata Motors, Tata Steel, Tata Power, Tata Consultancy Services, Tata Tea, Taj Hotels, Tata Chemicals and Tata Teleservices. This article will throw light on the less known investment of Tata group in Aviation and Aeronautic services. 

TATA Sons was founded by J.R.D Tata and in 1929 he became India?s first qualified pilot. The dream of entering the aviation marked was fulfilled by J.R.D Tata when he set up Tata Airlines in 1932. He himself flew its first single-engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay's Juhu aerodrome. After World War II, it became a public limited company and was renamed as Air India. Today, Air India is the largest international carrier out of India with an 18.6% market share, it is owned by Air India Limited, a government-owned enterprise. Over 60 international destinations are served by Air India across four continents. 

For over sixty years Tata Sons did not step into the aviation field, but Ratan Tata always was a driving force behind the efforts in the comeback. In 2014, Tata Sons made its official comeback with AirAsia and then Vistara. 

Currently, Tata Sons hold shares in two airline companies; Tata Sons have 51% stake in Vistara and 49% of shares in Air Asia. 

Vistara is a joint venture of Tata Sons Limited and Singapore Airlines Limited (SIA), wherein Tata Sons holds 51% stake in partnership and Singapore Airlines owns 49% stake. The company is registered as TATA SIA Airlines Limited. The airline service started operating in 2015 and today it is the 6th largest domestic airline .The airline serves twenty-two destinations with a fleet of Airbus A320-200 aircraft. Vistara was the first airline to introduce premium economy seats on domestic routes in India. 

AirAsia on the other hand is a joint venture by Tata Sons and AirAsia Berhad, they both hold almost 50% stakes of the airline. It started functioning in 2014 and marked Tata's return in the aviation sector after 60 long years. Today, AirAsia is the 4th largest low-cost carrier after IndiGo, GoAir, and SpiceJet. 

Both the Tata backed airlines have had a turbulent start as most of the aviation market was dominated by IndiGo, owned by InterGlobe Aviation, and Etihad-backed Jet Airways. The civil aviation is strongly expanding in India and as the trend of urbanization and travel is increasing in India, Vistara and AirAsia will surely have a bright future.  

© www.newsandstory.com