Air India: What will be TATA's strategy ahead?
The state-owned airline company air india has been handed back to the Tata group after almost 69 years. Debt-ridden air india returned to the Tata Group on january 27. There are many challenges before the new owners of the airlines and they have to make a plan to deal with it. These challenges include old plane to human resources and many other issues.
According to Moneycontrol, Gustav Baldauf, former COO of air india, has said that the biggest challenge is to create new objectives and strategies. It will define a new airline system with a different model, reduction in doubling routes, handling of services and markets, and different groups of employees.
How many airlines does tata have?
At present, Tata has four airlines – air india, air india Express, Vistara, and AirAsia India. AirAsia india will soon join air india Express.
According to Baldauf, only a new company-wide quality system, the new goal, will help maintain individual airlines on their vision and mission. Company standards should not change broadly but it is required to cover charter flights and cargo services on both domestic and international paths,”.
Return on investment: Baldauf replies on investment and returns, “It is not a matter of managing three airlines, but building and managing a new, big and diversified airline. It is important that it follows the common vision and becomes a new strong competitor of the Asian region.”
In an interview with Moneycontrol, the former air india executive said, “Productivity parameters can be more important in private carriers than in a PSU. For example, an air india pilot gets a guaranteed payout of 70 hours, even if he flies 40 hours. This cannot happen in the case of Vistara or AirAsia.
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