Ratan Tata's lasting impact on India's aviation industry

Air India, Air India Express, and Vistara are making inflight announcements on Thursday in tribute to Tata Group patriarch Ratan Tata. Apart from the Tata Group airlines, IndiGo, SpiceJet, and Akasa Air also paid tribute to The Chairman Emeritus of Tata Sons. And what a fitting tribute for a man, for whom aviation held a special place in his heart.

Tata passed away on Wednesday night at a Mumbai hospital at the age of 86.

Himself a pilot and having co-piloted an F-16 Falcon in 2007, aviation was one of Ratan Tata’s deep personal passions. 

In 2021 the Tata Group purchased Air India, in what is seen by many as a deeply personal decision. Air India was originally founded by the Tata family in 1932 and was nationalised in 1953. With India’s liberalisation in the early 1990s, the aviation sector opened to private carriers. Around this time, Ratan Tata succeeded JRD Tata as chairman of the Tata Group, and he was equally passionate about aviation. Ratan Tata set to work on building a world-class airline.

But for nearly two decades the group's efforts to establish a foothold in Indian aviation remained unsuccessful.

In 1994, Tata, in partnership with Singapore Airlines, had ambitious plans to launch a joint venture airline in India. However, intense opposition from politicians, bureaucrats, and rival airlines quickly derailed the project.

“We went through three governments, three Prime Ministers and each time there was a particular individual who thwarted our efforts to form another airline,” Tata publicly stated in November 2010.

In an interview in December 2012, as he prepared to step down as Chairman of Tata Sons, Ratan Tata expressed doubts about the Tata Group re-entering the aviation sector, describing it as a space riddled with "destructive competition". 

Despite his doubts, Tata Group announced a joint venture with AirAsia to launch the low-cost AirAsia India. By 2013, Tata partnered again with Singapore Airlines to launch Vistara, a premium full-service airline. 

Air India now was a mere shadow of its former self under government ownership. It was looking for a private sector player to take control.

Under the chairmanship of Natarajan Chandrasekaran, the Tata Group decided it was time for Air India’s homecoming. The Tatas won the bid for Air India in October 2021 and officially took over the airline on January 27, 2022.

“On an emotional note, Air India, under the leadership of Mr. J.R.D. Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr. J.R.D. Tata would have been overjoyed if he was in our midst today.” Ratan Tata had said in a statement on October 8, 2021.

Tata Group is in the process of consolidating its airline business. The integration of Air India Express and AIX Connect was completed on October 1, while the merger of Vistara with Air India is scheduled for November 12.