R. Muthukumar
A few weeks ago, Air India, which is facing various problems, announced that it has signed contracts with Airbus and Boeing to buy 500 new planes.
Tata Group bought Air India for a huge sum of money to take over Air India, which has been struggling with multi-faceted headaches such as salary arrears, years of debt and being forced to continue unprofitable services.
Is it possible to buy 500 new aircraft as such a huge investment after just one year of delivery? Is it smart? Discussions have started.
The investments for this new business project will be more than Rs.2400 crores.
do you know Air India last bought a new plane 17 years ago! It has bought 68 Boeing and 43 Airbus planes.
The aircraft currently under contract will be delivered by late 2024. By 2025, all new aircraft will be owned by Air India.
The US and France are saying that the agreement will strengthen their ties with India.
Such a multi-billion-crore trade deal will be essential when the economic recession continues.
One sector that has seen a sharp decline due to the Corona lockdown is the tourism sector. Its most important construct is airline services.
There are currently 7 airlines operating in our country. They are Air India, Air India Express, AirAsia, IndiGo, SpiceJet, Vistara and GoFirst.
Air India, Air India Express and Vistara are Tata group companies on the list.
The tourism industry has started to grow all over the world. But the airlines are struggling due to lack of funds. Air India currently has a tie-up with Vistara Airlines, which handles 9 percent of India’s air passengers.
In other words, Air India has entered the field in an effort to provide Prime Minister Modi’s dream plan of connecting small cities with comprehensive air services and providing air services at very low cost. The continuation of that is to increase its air service.
Air India can ensure worldwide services if it has a large number of aircrafts at its disposal. The existing aircraft can be leased out to other airlines to cover the financial shortfall.
Indian travelers are forced to travel at today’s inflated fares. If the airline expands its services with additional flights soon, it is likely to re-assure low-cost tickets as well.
Today, the Indian aviation industry ranks among the top five in the global aviation industry in terms of growth plans and profitable operations.
Therefore, Tata Group has threatened the expansion of Air India for the Indian aviation industry to perform well in the global arena at a time when the recession in the aviation industry is over and it is starting to operate again in full swing. Air India will stand tall if it becomes a world-class service provider as well as comfortable and luxurious travel. Retains the status of Maharaja.