Even as the Tata Group took over Air India, the initial operations are expected to be fraught with a number of issues ranging from older aircraft models, poor cabin products and human resources issues.
Air India remains the largest Indian operator to ferry passengers abroad. However, this fact is to be taken alongside data that show that foreign airlines had a larger market share of passengers flying abroad from India until the Covid-19 curbs came into place.
"If the Tatas are able to rebuild the airline to its past glory, which is going to be a herculean task, there is a huge opportunity for Air India in terms of international traffic that is currently carried by various global carriers," Suresh Nair, an aviation veteran working with various domestic and foreign airlines for over two decades, told The Economic Times.
"Air India's success on the India-US routes is a clear indicator that there is a demand for direct flights on Indian airlines provided it meets the expectations of the flying public,” Nair was quoted as saying.
According to a previous DH report, Tata may have to shell out around Rs 15 crore to Rs 37 crore ($2-5 million) to overhaul Air India’s aircraft. The work culture of the carrier, which is very much like that of a government-run office, will also need to be changed.
However, this is not all.
An airline executive said that Air India needs to change its brand image to attract younger fliers, who are expected to account for 60 per cent of the fliers over the next five years, according to The Economic Times.
"The needs of millennials are totally different from the kind of product and service offering that AI has to offer. Attracting millennials will mean positioning yourself as a modern, technology-driven, innovative and environmentally conscious airline rather than being seen as an old relic from the days of being a government-run enterprise," the executive was quoted as saying.
According to the report, executives said that the Tata Group did not have the expertise to turn around an airline of this size. "Let's be realistic, the group lacks expertise and would need to hire someone charismatic and able from outside to put a revival plan in place," an industry executive was quoted as saying.
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