Tata Group is a multinational conglomerate based in India. The Group was founded back in 1868 and during its existence has ventured into the Aviation industry a few times now with different carriers.

Vistara Airlines is a joint venture between Tata Group and Singapore Airlines, an already formidable carrier despite it being launched only recently. Another airline that the Tata’s have a stake in is AirAsia India, this airline was created as a Joint Venture between Tata Group and AirAsia.

Tata Group had actually founded Air India around 87 years ago before they divested their stake in the flag carrier many years ago.

Now it seems like the group might once again own Air India after news broke out that they were interested in bidding for the national carrier on their own and without any partners after Singapore airlines decided not to join in on the bid. Clearly, the Group has gone into partnership with formidable partners who have experience in their respective operating models for their current airlines.

LARGEST AIRLINES BY CAPACITY (w/c 10-Feb-2020)

LARGEST AIRLINES BY CAPACITY (w/c 10-Feb-2020)

Source: Blue Swan Daily

If the group does acquire Air India, their portfolio of airlines would have a 25% market share with a fleet size of over 200 aircraft and be top contenders in the aviation market in India.

As a result, it’ll be interesting to see what the group does with Air India if they are successful in their bid as the group has stated in the past that it “will not run a third airline unless we merge”.

VISITOR ARRIVALS BY MARKET TO INDIA (2018)

VISITOR ARRIVALS BY MARKET TO INDIA (2018)

Source: Blue Swan Daily

So why is Tata Group taking on a struggling carrier and not expanding organically with its existing airlines, especially when its current airline portfolio is bleeding cash and their airlines combined lost Rs1,500 crore in the 2019 Financial Year while Air India lost Rs8,400 crore in the same period!

Sources: Times Now, CNBC & Gulf News