Mumbai

Tata Sons Chairman N. Chandrasekaran on Saturday emphasized that Air India, currently undergoing a major transformation, represents more than just a business venture for the Tata Group—it is a responsibility.

Speaking at an event marking the 121st birth anniversary of J.R.D. Tata in Mumbai, Chandrasekaran highlighted the ongoing challenges in the aviation sector. Global supply chain disruptions have made it difficult to secure aircraft parts, infrastructure, and new fleet deliveries, affecting the pace of planned upgrades.

“Every plan you make becomes harder to execute because of the challenges in this industry,” he said, adding that aviation is highly capital-intensive with narrow profit margins.

Chandrasekaran reiterated, “For the Tata Group, Air India is not merely a business opportunity. It is a responsibility.” Since acquiring the financially struggling Air India and Air India Express in January 2022, the group has been pursuing a five-year transformation strategy. Progress, however, has been slower than anticipated due to factors such as global supply chain issues impacting aircraft delivery and upgrades.

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Discussing the sector’s growth potential, Chandrasekaran noted the strong correlation between India’s GDP growth and domestic aviation expansion. “Every one per cent increase in GDP translates to roughly two per cent growth for the aviation industry,” he said. He added, “If India grows at eight per cent, the aviation sector grows at sixteen per cent. This trend is expected to continue for the next three decades, making it an exciting period for both the economy and aviation.”