“It is only a matter of time before the Tata Group re-align their airline businesses in order to reduce cash burn. And at that point in time, even if we leave Air India Express and AirAsia India out of the mix as they are low cost airlines, we are still talking of a combined full service airline (Vistara + Air India) with around 180 odd aircrafts. The combined entity would have a fairly extensive domestic network which will enable it to offer customers a viable alternative to IndiGo; and enough wide-body aircraft to cater to the demand for international travel,” he adds.He expects Air India to begin refurbishment of their long and ultra-long-haul routes first, with probably the New York flight operated as AI-101, the flagship flight number leading the way.“If you have got the product and the service right, given JRD’s legacy, those who may have shunned Air India in the recent past for various reasons, would definitely want to try them out in their new avatar,” he says.Should the Tata’s be worried of the powerful employees’ unions? “Tatas work with unions in various businesses. As long as unions are aligned with the mission of the organization, it should not cause concern,” they seem to believe. Air India employees, who were not being paid on time over the past few years, also seem happy with timely salaries making a comeback.Arun Maira, former member of the Planning Commission, who has also held various positions in the Tata Group and authored the book ‘The Learning Factory: How the Leaders of Tata Became Nation Builders’ says, “Aviation unlike let’s say the steel business is very people intensive. It’s a service business and not capital intensive. The Tatas have the orientation to invest in people. So, if the industry requires building up of service ability, the skills and training of people, the Tata’s are generally very good at it.”Tata’s unique competitive advantage matters, Maira says, recalling JRD taking personal interest in people.“So much so that when Singapore Airlines started, it sent its employees for training at Air India’s centres,” he recalls.(This article was first published in National Herald on Sunday)
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