Musu Pro

Project Report
on
STUDY ON GROWTH OF TATA GROUP IN AVIATION INDUSTRY
A Project Submitted to University of Mumbai for partial completion of the

Degree of Bachelor of Commerce (Accounting & Finance)
Under the Faculty of Commerce
By
Ms. MUSRAT ANSARI
T.Y.B. Com (Accounting & Finance) Semester VI

Roll No. 20401
Under the Guidance of

Prof. POOJA ALWANI
1
Seva Sadan’s
R. K. Talreja College of Arts, Science and Commerce,
Centre for Management Courses
Ulhasnagar – 421003
Department of Accounting & Finance
MARCH 2023
2
3
Seva Sadan’s
Declaration by Learner
4
I the undersigned Miss. Musrat Ansari here by, declare that the work embodied in
this project work titled “STUDY ON GROWTH OF TATA GROUP IN
AVIATION INDUSTRY”, forms my own contribution to the research work
carried out under the guidance of Prof. Pooja Alwani is a result of my own
research work and has not been previously submitted to any other University for
any other Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all the information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.
_
Ms. Musrat Ansari
(Name & Signature of Learner)
Roll No.: 20401
Certified By,
_
5
Prof. Pooja Alwani
(Name & Signature of Project Guide)
6
Seva Sadan’s
CERTIFICATE
This is to certify that Ms. Musrat Ansari has worked and duly completed her/his
Project Work for the degree of Bachelor of Accounting & Finance under the
Faculty of Commerce in the subject of Accounting / Finance and her/his project
is
7
entitled, “STUDY ON GROWTH OF TATA GROUP IN AVIATION
INDUSTRY” under my supervision.
I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and
investigations.
Prof. Pooja Alwani
(Name & Signature of Project Guide)
8
Seva Sadan’s
9
Certificate of Project Completion
This is to certify that Mr./Ms. MUSRAT ANSARI ROLL NO 20401 of

Third Year Accounting & Finance, Semester VI for academic year 2022
-
2023 has successfully completed the project on An Awareness of Hire
Purchase Among Youth under the guidance of Prof. Pooja Alwani.
Internal Examiner:
_
(Name & Signature with Date)
External Examiner:
_
Head of Department
of Accounting & Finance
10
_
ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.
11
I would like to thank my Principal Dr. Geetha Menon, for providing the necessary
facilities required or completion of this project.
I take this opportunity to thank our Coordinator Prof. Pooja Alwani , for their
moral support and guidance.
I would also like to express my sincere gratitude towards my Project Guide Prof.
Pooja Alwani whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers who
supported me throughout my project.
12
INDEX
SR NO CONTENT PAGE
1 INTODUCTION
1.1 Meaning
1.2 History
1.3 Spreading its wings
1.4 Vistara TATA SIA Airlines LTD. -Background and History
1.5 Air India -Background and History
1.6 Air Aisa (India) Private Limited Company-Background and History
1.7 Air India Express -Background and History
RESEARCH METHODOLOGY
2.1 Recent announcement of TATA Group
2.2 Objectives of the study
2.3 Scope of the study
Limitation of study
1.2 History
1.5 Air India -Background and History
1.6 Air Aisa (India) Private Limited Company-Background and History
1.7 Air India Express -Background and History
13
2 RESEARCH METHODOLOGY
2.7 Limitation of study
3 LITERATURE REVIEW
3.1 Article of J,R,D TATA
3.2 Tata Stories: 40 Timeless Tales to Inspire You.
3.3 Books of Tata group
14
15
4 DATA ANALYSIS INTERPRETATION AND
PRESENTATION
4.1 Graphic representation of Vistara revenue turnover income loss

4.2 Graphic representation of Air India revenue turnover income loss
4.3 Graphic representation of Air Aisa (India) private limited
company revenue turnover income loss
4.4 Graphic representation of Air India Express revenue turnover
income loss
5 CONCLUSION SUGGESTION AND BIBLIOGRAPHY
5.1 Conclusion
5.2 Suggestion
5.3 Bibliography
16
To Study On Growth Of Tata Group In Aviation Industry
Chp-1 Introduction:
1.8 Meaning
1.9 History of TATA Group in
aviation 1.10Spreading its wings
1.12Air India -Background and History
1.13Air Aisa (India) Private Limited Company-Background and
History 1.14Air India Express -Background and History
17
1.1 Meaning
Aviation includes the activities surrounding mechanical flight

and the aircraft industry. Aircraft includes fixed-wing and rotary-wing types, morphable wings,
wing- less lifting bodies, as well as lighter-than-air craft such as hot air balloons and airships.
Aviation began in the 18th century with the development of the hot air balloon, an apparatus
capable of atmospheric displacement through buoyancy. Some of the most significant
advancements in aviation technology came with the controlled gliding flying of Otto Lilienthal in
1896; then a large step in significance came with the construction of the first powered airplane by
the Wright brothers in the early 1900s. Since that time, aviation has been technologically
revolutionized by the introduction of the jet which permitted a major form of transport
throughout the world.
18
The word aviation was coined by the French writer and former naval officer Gabriel La Landelle
in 1863. He derived the term from the verb avier (an unsuccessful neologism for "to fly"), itself
derived from the Latin word avis ("bird") and the suffix -ation.
1.2 History
It was in 1932 that JRD Tata undertook India’s first air service flight and went on to become the
pioneer of civil aviation in the country. Today, nearly 87 years later, the Tatas are still making
strides in aviation.
From Tata Air Lines and the long-since nationalised Air India to strategic joint ventures with
AirAsia Berhad and Singapore Airlines (SIA) for AirAsia India and Vistara, respectively, Tata
has constantly reached for the skies. The two joint venture airlines operate independently with
their respective business models — low-cost (AirAsia) India and full-service (Vistara).
Vistara scaled up its operations significantly in 2019 by adding nine Boeing 737-800NG aircraft
to its fleet and taking the final count of aircraft to 31 which helped the airline expand its network
by more than 50%.
19
AirAsia India commenced operations in 2014 and has 23 aircraft; it flies to 21 destinations across
India with 630+ weekly flights. Into its fifth year of operations, AirAsia India has ambitions now
to connect more tier II and tier III cities within the Indian subcontinent and a long-term view of
going international.
20
After the shutdown of another Indian airline, Vistara and AirAsia India took the opportunity to
expand their domestic operations by launching new routes. With 31 aircraft today, Vistara flies
to 27 destinations across India and abroad, and operates over 1200 flights a week.
Vistara is now poised to expand to other geographies across the world as it prepares to add 10
more aircraft by March 2020 to its fleet, including the wide-body Boeing B787-9 that will be
used for long-haul operations. The airline has ordered 6 such aircraft in addition to 50 new
aircraft from the Airbus A320neo family (including Airbus A321neo) that will join its fleet in the
next four years. Commenting on the airline’s expansion plans, Leslie Thng, CEO of Vistara,
says, “In the next two to three years, I would say that in terms of ASK (available seat
kilometres), domestic operations would still be acquiring a larger proportion compared to
international, as we would continue to expand our domestic operations. If you extrapolate
further, going five years down the road, we could possibly look at a 50:50 ratio.
Meanwhile, the amendment of the 5/20 rule enabled Vistara to go international before
completing five years of operations, the first Indian airline to be able to do so.
The 5/20 rule earlier restricted Indian carriers to fly abroad until completing five years in
operations and having a fleet of 20 aircraft. However, the rule was amended in 2016, permitting
Indian airlines to fly on international routes if the airline had 20 aircraft in its fleet. Vistara
inaugurated its international operations with flights to Singapore, Bangkok and Dubai in August
2019.
21
In line with its efforts to provide an extended worldwide network to its customers, Vistara
expanded the scope of its existing codeshare agreement with Singapore Airlines and SilkAir to
include international flights.
As part of the extended agreement, Vistara will add its ‘UK’ designator code to SIA- and
SilkAiroperated flights between Singapore and eight destinations in India, namely Ahmedabad,
Bengaluru, Chennai, Cochin, Hyderabad, Kolkata, Mumbai and New Delhi. Vistara will
codeshare on services to more than 40 destinations in the SIA and SilkAir network across Asia,
Oceania and the United States.
AirAsia India too has some ambitious plans. From the current 23 aircraft, it hopes to scale up to
40 by March 2020. Having completed five years of flying domestically, it is hoping to get
approval to start flying internationally by the end of 2019.
22
Mr Bhaskaran says, “Indian aviation has been in a bright spot in recent years, and for the last 10
years it has grown by an average of 20 percent y-o-y. AirAsia Berhad brings in great domain
understanding of running a low-cost airline and has been recognised as the world’s best low-cost
carrier by Skytrax for 11 years in a row (since 2008).”
Customer-centric focus
AirAsia India and Vistara’s journey so far has been phenomenal. While the former is building a
brand with a highly efficient service and superlative customer experience, Vistara has now
become the highest-rated airline on consumer platform TripAdvisor and airline ranking platform
Skytrax. Vistara has introduced several industry-first services which include pioneering the
concept of Premium Economy in domestic skies and launching a three-class configuration
(including Business and Economy Class cabins); introducing the first value-based frequent flyer
programme, Club Vistara, which is the fastest rewarding and least restrictive; opening a signature
lounge at T3 Delhi airport; installing robot RADA to assist travellers at airports and bringing
Starbucks coffee on-board for customers in the two front cabins.
Vistara also became the world’s only airline to assure a window or an aisle seat to solo women
travellers and provide complimentary arrival assistance that includes baggage claim and
arrangement of transportation from the airport by authorised service providers upon request. It is
also the first Indian airline to provide sanitary napkins on all domestic flights.
23
AirAsia’s ‘Santan Menu’ offers a variety of meals. For the last few months, the Directorate
General of Civil Aviation (DGCA), Government of India, has placed AirAsia India, second in
the On Time Performance (OTP) rankings. The airline has also topped the charts for the least
number of passenger complaints.
“As a part of the tourism and travel industry, where consumers are at the core of our business, we
aim to curate promotional campaigns that resonate with the masses and help establish personal
connections. With the aim of promoting tourism in India, we recently conducted travel fairs in
24
Jaipur, Visakhapatnam and Bhubaneswar. As one of the most preferred low-cost carriers, we
urge flyers to visit these travel fairs and avail exciting offers,” Mr Bhaskaran adds.
Getting on with the times
Vistara is positioning its brand as an airline with a global, contemporary outlook and an Indian
soul. Mr Thng shares, “Our awards and accolades speak for this: whether they are by Skytrax or
a consumer platform like TripAdvisor or celebrated travel publications like Conde Nast
Traveller. These awards affirm that our product and service are world class and help us create
more awareness of our brand.”
In this day and age, passengers insist on accountability which means swift redressal of
grievances by airlines. “We have deployed a single window support system to cater to their
requests through our digital channels. We have dedicated teams, who use the best social media
listening and monitoring tools to keep a track of consumer sentiments and reach out to them to
help with their queries and concerns. We have also introduced AVA(chatbot) as part of an
update to our website and mobile apps. AVA, available in eight languages, will assist on live
chat, responding to inquiries instantly,” Mr Bhaskaran says.
What lies ahead
Infrastructural challenges such as runway shortage, metro cities needing two airports and lack of
airports in tier II and tier III cities persist. Operational issues like slot constraints and capacity
constraints also impede the growth of the Indian aviation ecosystem. The government’s
increased impetus on infrastructure improvement and the initiatives rolled out by the Ministry of
Civil Aviation are encouraging.
25
Mr Bhaskaran says, “While the growth story has been fantastic with some significant
improvements in the overall infrastructure supporting the growth of aviation, yet most airlines
have not been very profitable. However, all indicators are lining up to show continued growth in
Indian aviation over the next decade.”
Mr Thng concurs, “We’re very hopeful that these steps coupled with the growing demand for air
travel in India will elevate the country’s position in the global market.”
Another determining factor is pricing. India is an extremely price sensitive market. In such a
scenario, high airport charges and other operating costs limit passenger demand which is then
captured by other modes of transport.
“In the Indian context, the pricing strategy of AirAsia India is in line with the low-cost players
operating in the aviation landscape. The whole pricing policy is based on the concept of
unbundling the product so that a low price point could be offered for the most basic flying
service and all ancillary services can be availed at an additional cost. This makes a plain vanilla
unbundled flight easier on the pocket and doesn’t force the passenger to pay a higher price,” Mr
Bhaskaran adds.The aviation sector is set to expand and with it are the ambitions of the Tatas.
Did you know?
• Vistara has flown more than 5 million customers in the last one year, while the fleet size
has also expanded significantly.
• With 31 aircrafts today, Vistara flies to 27 destinations and operates 170 flights per day.
• AirAsia India has flown a total of 191,074:26 (Hours:Minutes) since its inception.
• AirAsia India has 23 aircrafts, reaching 19 destinations with 165 flights.
26
• In 2015, AirAsia unveiled an aircraft named 'The Pioneer', with livery dedicated to JRD
Tata.
• In 2018, Vistara introduced 'Vistara Retrojet', which resembled the aircraft used in the
1940s by Tata Airlines.
• Vistara is the only airline to offer the choice of Premium Economy class for travel
between India, Dubai and Bangkok, in addition to Economy and Business Class.
• Vistara is the only airline in South Asia and Southeast Asia to offer freshly brewed
Starbucks coffee onboard.
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in
India, comprising 30 companies across ten verticals.
The group operates in more than 100 countries across six continents, with a mission 'To
improve the quality of life of the communities we serve globally, through long-term
stakeholder value creation based on Leadership with Trust’.Tata Sons is the principal
investment holding company and promoter of Tata companies. Sixty-six percent of the
equity share capital of Tata Sons is held by philanthropic trusts, which support education,
health, livelihood generation and art and cultureIn 2021-22, the revenue of Tata companies,
taken together, was $128 billion (INR 9.6 trillion). These companies collectively employ
over 935,000 people.Each Tata company or enterprise operates independently under the
guidance and supervision of its own board of directors. There are 29 publicly-listed Tata
enterprises with a combined market capitalisation of $311 billion (INR 23.6 trillion) as on
March 31, 2022.
Companies include Tata Consultancy Services, Tata Motors Tata Steel, Tata Chemicals, Tata
Consumer Products, Titan, Tata Capital, Tata Power, Indian Hotels, Tata
Communications, Tata Digital, and Tata Electronics.
27
1.4 Vistara – TATA SIA Airlines Ltd. - Background and History
Vistara is a joint venture of Tata Sons Private Limited and Singapore Airlines Limited (SIA),
wherein Tata Sons holds 51% stake in partnership and Singapore Airlines owns 49% stake. The
company is registered as TATA SIA Airlines Limited.
In 2013, two legendary brands, Tata Sons and Singapore Airlines, decided to fulfil a long-
cherished shared dream to bring forth a distinguished flying experience to air travellers in India.
With its strong historical ties with aviation, the Tata group had long wished to re-enter the
aviation sector, after Tata Airlines was renamed Air India and eventually, nationalised. Both, the
Tata group and Singapore Airlines were also firm believers in the growth potential of the Indian
aviation sector and hence tried to enter the market in the past; first, in 1994 by setting up a joint
venture to start an airline in India and then in 2000, teaming up to purchase stakes in Air India.
However, after the lifting of foreign investment restrictions in 2012, the partners once again
sought approval for a tie- up, which it obtained in October 2013. On November 5, 2013, Vistara’s
holding company, TATA SIA Airlines Limited, was incorporated.
The common goal of the joint venture is to redefine air travel in India to provide Indian travellers
a seamless and personalised flying experience that blends Tata’s and SIA’s service excellence
and legendary hospitality. The brand name ‘Vistara’ is derived from the Sanskrit word ‘Vistaar’
that means ‘a limitless expanse’. The name Vistara draws inspiration from the world that Vistara
inhabits, viz. the ‘limitless’ sky. The brand also draws stimulus from the image that passengers
most associate with a smooth and enjoyable flight – the endless, blue horizon they see through
the windows of an aircraft. As it aims to transform the flying experience of travellers in India,
Vistara christens its brand tagline as ‘fly the new feeling’.
28
On January 9, 2015, Vistara started its operations with a maiden flight from Delhi to Mumbai. In
a short span of time, Vistara has rapidly expanded its footprint, both in terms of network and
service proposition. Vistara connects 43 destinations in and outside of India, operates over 260
flights a day with a fleet of 54 aircraft including 41 Airbus A320, 5 Boeing 737-800NG, 5 Airbus
A321neo and 3 Boeing B787-9 Dreamliner. Vistara has already flown more than 35 million
happy customers since starting operations.
Management
Vistara’s parentage is reflected in the company’s management with expertise drawn from
Singapore Airlines and Tata Sons. The joint venture has a five-member Board, comprising its
Chairman, Mr. Bhaskar Bhat, Ex-MD of Titan Company Ltd, Director-on-Board, Mr. Lee Lik
Hsin, Executive VP (Commercial) Singapore Airlines and independent Directors Mr. Som Mittal,
former President & Chairman Nasscom, Ms. Sangeeta Pendurkar, CEO, Pantaloons (Aditya Birla
Group) and Mr. S. Padmanabhan, Executive Chairman - Tata Business Excellence Group &
Group Chief Ethics Officer, Tata Sons. The company’s leadership team includes:
Mr. Vinod Kannan, Chief Executive Officer
Mr. Niyant Maru, Chief Financial Officer
Mr. Vinod Bhat, Chief Information Officer & Chief Ethics
Counsellor Mr. Deepak Rajawat, Chief Commercial Officer
Mr Pankaj Handa, Divisional Vice President – Ground Operations
Ms. Deepa Chadha, Senior Vice President – Human Resources & Corporate
Affairs Capt Hamish Maxwell, Senior Vice President – Flight Operations
29
Mr. Sisira Kanta Dash, Senior Vice President – Engineering
Tata SIA Airlines Limited, operating as Vistara, is an Indian full-service airline, based
in Gurugram, with its hub at Indira Gandhi International Airport. The carrier, a joint venture
between Tata Sons and Singapore Airlines, commenced operations on 9 January 2015 with its
inaugural flight between Delhi and Mumbai. The airline had carried more than two million
passengers by June 2016 and as of May 2019, has a 4.7% share of the domestic carrier market,
making it the 6th largest domestic airline. The airline serves 34 destinations with a fleet of Airbus
A320, Airbus A321neo, Boeing 787-9 and Boeing 737-800NG[7] aircraft.
In February 2023, Air India CEO Campbell Wilson announced that the Vistara Airlines brand
would be dropped and merged with Air India in a few months.
History
The airline was founded in 2013 as a joint venture (JV) between India's conglomerate Tata Sons
and Singapore Airlines (SIA). The two companies had made a bid in the mid-1990s to launch a
full-service carrier in India that was unsuccessful, being denied regulatory approval by the Indian
government. With India opening up its airline sector for 49 percent foreign direct investment
(FDI) in 2012, Tata and SIA once again decided to float a JV airline company in India. The JV,
Tata SIA Airlines Limited (TSAL), was envisaged as a premium full-service carrier to cater to
the demands of high-end business travellers in India's civil aviation market dominated by low-
cost carriers. India's Foreign Investment Promotion Board approved the JV in October 2013,
allowing SIA to take a 49 percent stake in the airline. The two parent companies initially pledged
to invest a combined US$100mn as start-up capital, with Tata Sons owning 51 percent and
Singapore Airlines owning the remaining 49 percent. This was part of Tata's second major foray
into the aviation sector
30
along with a minority stake in AirAsia India. The company's first venture, Tata Airlines, was
established in the 1930s and later became the flag carrier Air India after nationalization.
The company unveiled its brand identity "Vistara" on 11 August 2014. The name was taken from
the Sanskrit word vistāra, meaning "limitless expanse". Vistara received its air operator's
certificate from the Directorate General of Civil Aviation on 15 December 2014 and started
operations on 9 January 2015.[19][23][24] Vistara became the first carrier to operate domestic services
out of the new Terminal 2 at Mumbai's Chhatrapati Shivaji Maharaj International Airport. On 24
August 2015, Vistara inaugurated the Aviation Security Training Institute, an in-house institute
for training its cockpit and cabin crew, security staff and others related to aviation industry. The
institute has secured the necessary approvals from the nodal body Bureau of Civil Aviation
Security. From the first month of operation, Vistara consistently achieved very high on-time
performance records of over 90 percent, the highest among India's domestic carriers. On 20
August 2015, Vistara declared it had carried half a million passengers in just over seven months
of operations. As of February 2016, Vistara has a share of 2% in the domestic carrier market.
Vistara recently received the membership of the International Air Transport Association (IATA),
joining the association of more than 280 airlines around the world that represents, leads and
serves the airline industry. With this, Vistara becomes one of the select few airlines in India to
have the IATA membership.
Vistara announced on 11 July 2019 that their first international destination would be Singapore.
The airline started its first international service from Delhi to Singapore and Mumbai to
Singapore on 6 and 7 August respectively using the Boeing 737-800 NG which was earlier used
by Jet Airways.
On 29 February 2020, the airline took the delivery of its first wide-body Boeing 787-9, becoming
the first Indian airline to operate this aircraft and yet to receive five more such aircraft. On 28
31
May
32
2020, the airline operated its first commercial flight on Boeing 787-9 Dreamliner on Delhi-
Kolkata route. On 28 August the same year, the airline started its first intercontinental flight
between Delhi and London Heathrow.
After the acquisition of Air India by the Tata group in January 2022, sources reported the chances
of a merger between Vistara and Air India. In November 2022, Tata Group and Singapore
Airlines confirmed the merger of two airlines into single airline. According to the merger plan,
Singapore Airlines will take up to 25.1% of the stake in the airline. The merger is expected to be
completed by March 2024.
Corporate affairs
On 15 April 2014, Vistara chose Phee Teik Yeoh as the chief executive officer (CEO) and Giam
Ming Toh as the chief commercial officer (CCO), both from Singapore Airlines.
In March 2015, Vistara shifted to its new office at the One Horizon Center tower in Sector
43, Gurgaon, a satellite city of Delhi. Initially it started out with a three-member board
comprising Swee Wah Mak (SIA group), Mukund Rajan and Prasad Menon (Tata group), with
the latter as chairman. In August 2015, the airline expanded the board by introducing two new
members, Som Mittal and Sangeeta Pendurkar, along with an equity infusion of ₹2 billion
(US$25 million), part of ₹5 billion (US$63 million) initially planned by Tata and SIA together.
In January 2016, Bhaskar Bhat, present managing director of Titan, joined as the new chairman
following Prasad Menon's retirement. In March 2016, Vistara appointed Sanjiv Kapoor as its
chief strategy and commercial officer as the successor to Giam Ming Toh who was scheduled to
leave in mid-April 2016 following completion of his deputation at Vistara.
On 16 October 2017, it was announced that Leslie Thng would succeed Yeoh Phee Teik as CEO
of Vistara. Yeoh returned to Singapore Airlines to take up a senior management role as Acting
33
Senior Vice President of Customer Experience. Thng was serving as Chief Commercial Officer
of Budget Aviation Holdings, a Singapore Airlines subsidiary, prior to his appointment in
Vistara. Before that, Thng was the chief executive officer of SilkAir, a full-service regional
airline under Singapore Airlines. Sanjiv Kapoor resigned from his position as the Chief
Commercial Officer of Vistara, on 31 December 2019, with Vinod Kannan, the Chief Strategy
Officer, taking up Kapoor's responsibilities.
Destinations
As of November 2021, Vistara serves 43 destinations across 12 countries. Its main hub is at
the Indira Gandhi International Airport. Vistara's first flight was on 9 January 2015, from Delhi to
Mumbai. On 6 August 2019, the airline launched its first international flight from Delhi to
Singapore using a Boeing 737-800NG aircraft which was earlier used by Jet Airways.
Codeshare agreements
Vistara codeshares with the following airlines:
 Air Canada
 British Airways
 Japan Airlines
 Lufthansa
 Singapore Airlines
 Swiss International Air Lines
 United Airlines
34
Interline agreements
Vistara has interline agreements with the following airlines:
 Aeroflot
 Air France
 Air Mauritius
 All Nippon Airways
 American Airlines
 Asiana Airlines
 British Airways
 Emirates
 Ethiopian Airlines
 Finnair
 flydubai
 Gulf Air
 ITA Airways
 Japan Airlines
 Kam Air
 Kenya Airways
 KLM
 Kuwait Airways
 Qatar Airways
 Singapore Airlines
 SriLankan Airlines
35
 Turkish Airlines
 United Airlines
Airbus A320-200
Boeing 787-9
36
Airbus A320neo in a retro livery
Vistara took delivery of its first aircraft at New Delhi on 25 September 2014. The airline took
delivery of the last of its thirteen original Airbus A320 aircraft in October 2016 and plans to
receive its seven Airbus A320neo aircraft by mid-2018. In March 2015, Phee Teik Yeoh
announced that the airline was planning to procure an unspecified number of both narrow-body
and wide-body aircraft to enhance the domestic network and launch international flights within
two years. Vistara inducted nine former Jet Airways Boeing 737-800NG to its fleet following its
grounding. Vistara returned two of these planes in January 2020 and the remaining seven will
exit the fleet between 2022 and 2023 as they are on long-term leases. Vistara has a standing
order of six 787-9 aircraft with Boeing, for delivery between 2020 and 2021. The first of these
Dreamliners were delivered in February 2020 and the second one in August 2020. The airline,
which currently has 50 planes, aims to have 70 planes by the end of 2023 after taking into
account some aircraft that will be returned to lessors.
Services
37
Cabin
Business class
On the Boeing 787-9 Dreamliner, Vistara offers 30 Stelia seats in a 1-2-1 configuration. Every
seat is able to recline into a full flatbed, and is upholstered in leather. The seats have 44 inches
seat pitch with 76 inches length when in full flatbed. The seats also come with a personal
stowage compartments, AC and USB outlet, 18-inch HD touchscreen monitor, remote handset
for navigating the IFE and controlling the ambient lighting.
Vistara has 8 business class seats, two rows in 2-2 configuration, in its 158-seater Airbus A320-
200 fleet. The seats are 20.12 inches (511 mm) wide with 42 inches (1,100 mm) seat pitch.
Premium Economy
Vistara is the first airline in India to introduce Premium Economy class in the domestic market.
At present, it offers 24 premium economy seats, four rows in 3-3 configuration, out of total 158
seats in the single aisle Airbus A320-200 aircraft in its fleet. Each being 18 inches (460 mm)
wide and having a pitch of 33–36 inches (840–910 mm).
On the Boeing 787-9 Dreamliner, it has 21 RECARO seats in a 2-3-2 configuration. The seats are
upholstered in leather, with 38 inches of seat pitch and 7 inches recline. These seats come with
individually adjustable calf rests and extendable footrests, as well as six-way adjustable
headrests. The seats also have AC and USB power outlet, and an IFE with a 13 inches HD
touchscreen.
Economy
On the Boeing 787-9 Dreamliner, Vistara has 248 seats, manufactured by RECARO. They are in
a 3-3-3 configuration, with 31 inches of seat pitch, as well as 5 inches of recline. These seats
also
38
have a 12 inches HD personal entertainment screen, six-way adjustable headrest and USB power
outlets.
In-flight entertainment
Vistara World is the airline's wireless Wi-Fi inflight entertainment system that travellers can
access on their personal handheld devices. Vistara selected a wireless IFE solution from Bluebox
Aviation Systems to enable this service. It offers a multimedia library of over 70 hours’
Bollywood and Hollywood content of various genres. It features movies of various categories
such as Drama, Romance, Comedy, Thriller, Action, Adventure and Kids, as well as popular
Indian and Western TV programs and a selection of music including Indian, Pop, Jazz, Blues,
Rock, Electronica and English Retro. Vistara World offers a live moving map display that allows
one to track their aircraft as it flies.
Catering
The in-flight food is catered by TajSATS Air Catering, another joint venture between Tata and a
Singaporean company, headed by Chef Arun Batra, formerly the executive chef of the Taj
Hotels group. Vistara offers four different meals for each cabin for different time of the day –
breakfast, refreshment, lunch and dinner with options of one vegetarian and one non-vegetarian
dish in economy class; two vegetarian dishes and one non-vegetarian dish in premium economy;
and two vegetarian and two non-vegetarian dishes for business-class cabin. The menu is typically
changed every seventh day and there are different menus for lunch and dinner. It also provides
special meals upon request 24 hours before departure.
Lounge
On 29 March 2016, Vistara inaugurated premium lounge service for its Business-class passengers
and Club Vistara Platinum & Gold members at the departure level of Terminal 3 of Indira
Gandhi
39
International Airport at Delhi. The lounge is spread across 250 square meters on the air-side and
can seat 75 people at a time.
With effect from 1 April 2020, Vistara has discontinued its Flagship Lounge at Terminal 3 of
Indira Gandhi International Airport in Delhi. Vistara now provides lounge access to their eligible
guests at the Plaza Premium Lounge at the Mezzanine Floor of Delhi Airport Terminal 3.
1.5 Air India -Background And History

Air India’s journey took off in 1932, when Bharat Ratna J.R.D Tata formed an Airline, realising
his dream. The first Indian to receive a commercial pilot’s license, it was his passion for flying
that had sparked Air India’s origins - with the launch of an Airmail service from the then Bombay
to Karachi via Ahmedabad. Nationalized in 1953, Air India has been spreading its wings over the
years to become a leading domestic and global brand.
Air India’s international connectivity, spanning cities in Europe, USA, UK, Africa, the Gulf, Asia
and Australia, was strengthened after joining Star Alliance – the largest global air consortium – in
July, 2014. The airline also covers every remote corner of our country. It has always stood by the
Nation and its people during the hour of need and has played a key role in evacuation missions
during crises like the Gulf War, the Covid pandemic and the recent Ukraine conflict.
On 27th January, 2022, Air India has been welcomed back to the Tata Group and is poised to soar
high - redefining its goals & approach with focus on overall excellence & customer-centric
processes. "The Tata group welcomes Air India's new customers and is excited to work together
to make Air India the airline of choice in terms of passenger comfort and service.", remarked Mr.
Ratan Tata, Chairman Emeritus, Tata Sons on the occasion.
40
Air India is the flag carrier airline of India, headquartered at New Delhi. It is owned by Talace
Private Limited, a fully owned subsidiary of Tata Sons, after Air India Limited's former owner,
the Government of India, completed the sale. Air India operates a fleet
of Airbus and Boeing aircraft serving 102 domestic and international destinations. The airline has
its hub at Indira Gandhi International Airport, New Delhi, alongside several focus cities across
India. Air India is the largest international carrier out of India with an 18.6% market share. Over
60 international destinations are served by Air India across five continents. The airline became
the 27th member of Star Alliance on 11 July 2014.
The airline was founded by J. R. D. Tata as Tata Airlines in 1932; Tata himself flew its first
single- engine de Havilland Puss Moth, carrying air mail from Karachi's Drigh Road Aerodrome
to Bombay's Juhu aerodrome and later continuing to Madras (currently Chennai). After World
War II, it became a public limited company and was renamed as Air India. On 21 February 1960,
it took delivery of its first Boeing 707 named Gauri Shankar and became the first Asian airline to
induct a jet aircraft in its fleet. In 2000 and 2001, attempts were made to privatise Air India and
from 2006 onwards, it suffered losses after its merger with Indian Airlines. Another privatisation
attempt was launched in 2017, which concluded with ownership of the airline and associated
properties reverting to Tata in 2022.
Air India also operates flights to domestic and Asian destinations through its subsidiary Air India
Express. Air India's mascot is the Maharajah (Emperor) and the logo consists of a flying swan
with the wheel of Konark inside it.
41
History
Early years (1932–1945)
As Tata Air Services
Tata Air Service
Vintage photograph of an Air India plane
Tata Sons' Airline Timetable Image, summer 1935
Air India had its origin as Tata Air Services later renamed to Tata Airlines founded by J. R. D.
Tata of Tata Sons, an Indian aviator and business tycoon. In April 1932, Tata won a contract to
carry mail for Imperial Airways and the aviation department of Tata Sons was formed with two
single-engine de Havilland Puss Moths. On 15 October 1932, Tata flew a Puss Moth carrying air
mail from Karachi to Bombay (currently Mumbai) and the aircraft continued
to Madras (currently Chennai) piloted by Nevill Vintcent, a former Royal Air Force pilot and
friend of Tata. The airline fleet consisted of a Puss Moth aircraft and a de Havilland Leopard
Moth.[18][19] Initial service included weekly airmail service between Karachi and Madras
via Ahmedabad and Bombay. In its first year of operation, the airline flew 160,000 miles
(260,000 km), carrying 155 passengers and 9.72 tonnes (10.71 tons) of mail and made a profit
of ₹60,000 (US$750).
As Tata Airlines
The airline launched its first domestic flight from Bombay to Trivandrum with a six-seater Miles
Merlin In 1938, it was re-christened as Tata Air Services and later as Tata Airlines. Colombo in
42
Ceylon (now Sri Lanka) and Delhi were added to the destinations in 1938. During the Second
World War, the airline helped the Royal Air Force with troop movements, shipping of supplies,
rescue of refugees and maintenance of aircraft.
Post-independence (1947–2000)
Air India International 1948 stamp of India
As Air India
Air India became the first Asian carrier to induct a jet aircraft, with the Boeing 707-420 Gauri Shankar.
After World War II, regular commercial service was restored in India and Tata Airlines became
a public limited company on 29 July 1946, under the name Air India. After Indian independence
in 1947, 49% of the airline was acquired by the Government of India in 1948. On 8 June
1948,
43
a Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off
from Bombay bound for London Heathrow marking the airline's first international flight.
Nationalisation
In 1953, the Government of India passed the Air Corporations Act and purchased a majority stake
in the carrier from Tata Sons though its founder J. R. D. Tata would continue as Chairman until
1977. The company was renamed as Air India International Limited and the domestic services were
transferred to Indian Airlines as a part of a restructuring. From 1948 to 1950, the airline
introduced services to Nairobi in Kenya and to major European destinations Rome, Paris and
Düsseldorf. The airline took delivery of its first Lockheed Constellation L-1049 and inaugurated
services to Bangkok, Hong Kong, Tokyo and Singapore.
All-jet fleet
On 21 February 1960, Air India International inducted its first Boeing 707-420, thereby becoming
the first Asian airline to enter the Jet Age.[28][29] The airline inaugurated services to New York on
14 May 1960. On 8 June 1962, the airline's name was officially truncated to Air India and on 11
June 1962, Air India became the world's first all-jet airline. In 1971, the airline took delivery of
its first Boeing 747-200B named Emperor Ashoka (registered VT-EBD) and introduced a new
Palace in the Sky livery and branding. In 1986, Air India took delivery of its first Airbus A310-
300. In 1993, Air India took delivery of a Boeing 747-400 named Konark (registered VT-ESM)
and operated the first non-stop flight between New York and Delhi.
44
Post-liberalisation (since 2000)
Air India Airbus A310-300. It sold three A300s in March 2009 due to debts.
In January 2013, Air India cleared some of its debts by selling and leasing back the newly acquired Boeing 787 D
Air India joined the Star Alliance in 2014. Pictured is Air India Boeing 787 Dreamliner (VT-ANU) in special Sta
In 2000–01, attempts were made to re-privatize Air India. In 2000, Air India introduced services
to Shanghai, China. On 23 May 2001, the Ministry of Civil Aviation charged Michael
Mascarenhas, the then-managing director, with corruption. According to the ministry reports, the
airline lost approximately ₹570 million (US$7.1 million) because of extra commissions that
Mascarenhas sanctioned and he was later suspended from the airline. In May 2004, Air India
launched a wholly owned low cost subsidiary called Air-India Express connecting cities in India
with the Middle East and Southeast Asia. Until 2007, Air India mainly operated on international
long-haul routes while Indian Airlines operated on domestic and international short-haul routes.
45
Indian Airlines merger
In 2007, Air India and Indian Airlines were merged under Air India Limited[37] and the airline
took delivery of its first Boeing 777 aircraft. The airline was invited to be a part of the Star
Alliance in 2007.
The combined losses for Air India and Indian Airlines in 2006–07 were ₹7.7
billion (US$96 million) and after the merger, it went up to ₹72 billion (US$900 million) by
March 2009. In July 2009, State Bank of India was appointed to prepare a road map for the
recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747-300M in
March 2009 for
$18.75 million to finance the debt. By March 2011, Air India had accumulated a debt of ₹426
billion (US$5.3 billion) and an operating loss of ₹220 billion (US$2.8 billion), and was
seeking ₹429 billion (US$5.4 billion) from the government. A report by the Comptroller and
Auditor General blamed the decision to buy 111 new aircraft and the ill-timed merger with Indian
Airlines for the poor financial situation. In August 2011, the invitation to join Star Alliance was
suspended as a result of its failure to meet the minimum standards for the membership. The
government pumped ₹32 billion (US$400 million) into Air India in March 2012.
On 1 March 2009, Air India made Frankfurt Airport its international hub for onward connections
to the United States from India. However, the airline shut down the Frankfurt hub on 30 October
2010 because of high operating costs. In 2010, financially less lucrative routes were terminated
and the airline planned to open a new hub for its international flights at Dubai. In 2012, a study
commissioned by the Corporate Affairs Ministry recommended that Air India should be partly
privatised. In May 2012, the carrier invited offers from banks to raise up $800 million via
external commercial borrowing and bridge financing. In May 2012, the airline was fined $80,000
by the US Transportation Department for failing to post customer service and tarmac delay
46
contingency plans on its website and adequately inform passengers about its optional fees.
47
In 2013, the then-Civil Aviation Minister Ajit Singh stated privatisation was the key to the
airline's survival. However, the opposition led by the BJP and the CPI(M) slammed the
government. In 2013, the Indian government planned to delay equity infusion of ₹300 billion
(US$3.8 billion) that was slated to be infused into the airline slowly over a period of eight years.
In January 2013, Air India cleared a part of its pending dues through funds raised by selling and
leasing back the newly acquired Boeing 787 Dreamliners. In March 2013, the airline posted its
first positive EBITDA after almost six years and 20% growth in its operating revenue since the
previous financial year. Air India Limited split its engineering and cargo businesses into two
separate subsidiaries, Air India Engineering Services Limited (AIESL) and Air India Transport
Services Limited (AITSL) in 2013. In December 2013, the airline appointed veteran pilot SPS
Puri as its head of operations. The appointment was criticised by the Air India pilots union as Puri
allegedly has multiple violations to his name.
1.6 Airasia (India) Private Limited Company -Background And History

Headquartered in Bengaluru, India, AirAsia India Limited is a joint venture between Tata Sons
Private Limited and AirAsia Aviation Group Limited. AirAsia India commenced operations on
12th June 2014.
The airline offers plush leather seats, a diverse selection of hot meals and Red Carpet services.
AirAsia India stands firmly on the pillars of its core values - Dare to Dream, Be Guest-Obsessed,
People First, Safety Always, Make it Happen, One AirAsia, and Sustainability Spirit.
As an airline that has consistently embraced technology to deliver operational efficiency and
enhance guest experiences, AirAsia India has introduced services to facilitate contactless travel
like AirAsia Flyporter door to door baggage delivery services in Bengaluru, New Delhi, and
Hyderabad
48
and Red Carpet Priority Check-In, Boarding, and Baggage services along with other exclusive
benefits on airasia.co.in
AIX Connect, formerly known as AirAsia India, is an Indian low-cost airline headquartered
in Bangalore (Bengaluru), Karnataka. The airline was a joint venture between Tata
Sons and AirAsia Bhd. Tata Sons currently holds a 100% stake in the airline, after AirAsia Bhd
sold its remaining 16.33% stake to Air India. It commenced operations in June 2014 with
Bangalore as its primary operating base. In December 2022, AirAsia India was renamed AIX
Connect.
History[edit]
AirAsia India Airbus A320 in 'The Pioneer' livery. The aircraft is painted with an image of J. R. D. Tata
In February 2013, with the Government of India allowing a foreign direct investment of up to
49% in airlines, AirAsia Berhad applied to the Indian Foreign Investment Promotion Board
(FIPB) seeking approval for commencing its operations in India. In March 2013, AirAsia
announced that it would establish a joint venture with Tata Sons and Telestra Tradeplace with
Tata Sons representing the airline with two non-executive directors in the board.
49
The airliner planned to operate with the world's lowest unit cost of ₹1.25 (1.6¢ US) per available
seat kilometre and a passenger break-even load factor of 52%. It also planned to hedge 100% of
its fuel requirements for the first three years and to achieve an aircraft turnaround time of 25
minutes.
AirAsia planned to begin operations to various tier 2 and tier 3 cities with Chennai International
Airport as its main operating base. According to KPMG, the introduction of AirAsia was
expected to cause another price war, ultimately leading to an increase in air traffic and some
consolidation in the Indian aviation sector. AirAsia initially invested an amount of US$50 million
and in preparation for its operations in India, it struck deals with online and offline travel agents.
On 3 March 2013, the FIPB officially permitted AirAsia to rent or lease aircraft and to carry
cargo on its scheduled flights. The airline then applied for permission to schedule aircraft and
transport passengers, which the FIPB accepted on 6 March.
AirAsia India was established on 28 March 2013 and became the first foreign airline to set up a
subsidiary in India. In April, the airline started recruiting candidates for pilots and cabin crew. As
the final procedure to obtain Air Operator Permit, a proving flight was conducted on 1 and 2 May
2014 flying from Chennai to Kochi, Bangalore and Kolkata. On 7 May 2014, the DGCA issued
an Air Operator Permit to the company. On 30 May 2014, the airline announced the shifting of its
base to Bangalore and its first flight from there to Goa. AirAsia operated its maiden flight on 12
June 2014 In June 2015, the airline made Indira Gandhi International Airport, Delhi its secondary
hub for North Indian operations. In August 2015, Tata Sons increased its stake to 40.06% from
30% earlier by injecting fresh equity while Telestra's share was reduced to 10% from 20%. As of
July 2019, AirAsia India was the fifth largest low-cost carrier in India,
behind IndiGo, SpiceJet, Star Air (India), and GoAir, with a market share of 7.1%.
In January 2018, then managing director and chief executive Amar Abrol announced plans of the
50
company to expect a fleet of 21 aircraft by the year end, which would make it eligible to operate
51
overseas flights. In July 2020, AirAsia India launched an aviation analytics app that would help
enhance the operational efficiency of the airline by monitoring and helping manage aircraft
turnaround between flights with data analytics in real time.
On 29 December 2020, AirAsia Berhad announced that it would sell a 32.67% stake in AirAsia
India to Tata Sons for $37.7 million, including a provision to sell the remaining 16.33% stake for
$18.8 million. Tata Sons acquired Air India Limited on 8 October 2021. The Tata Group
requested approval from the Competition Commission of India (CCI) to merge AirAsia India
with Air India Limited in April 2022, which was granted on 14 June 2022. On 2 November 2022,
AirAsia Berhad sold the remaining 16.33% stake to Tata Sons. However, the AirAsia brand can
still be used for twelve months.
AirAsia India added the gender-neutral honorific Mx as a third option for passengers booking
tickets from June 2022.
The Tata Group which had acquired Air Asia India then changed the airlines name to AIX
Connect and announced the airlines merger with Air India Express.
Corporate affairs
AirAsia India is headquartered in the Alpha 3 Building on the property of Kempegowda

International Airport, in Devanahalli, Bangalore, India. Prior to the airline's formation, Tony
Fernandes, founder of AirAsia group, announced that he would like Ratan Tata to be the
chairman of the airline; however the latter refused, though he later consented to being the chief
advisor to the AirAsia India management board. On 15 May 2013, AirAsia India appointed
management consultant Mittu Chandilya as CEO. A month later, on 17 June, S. Ramadorai, the
non-executive vice-chairman of Tata Consultancy Services, was appointed as the chairman of the
airline. In April 2016, Amar Abrol replaced Mittu Chandilya as the CEO of the airline. In June
52
2018, Amar Abrol
53
reportedly quit and in October 2018, AirAsia India announced that Sunil Bhaskaran had been
appointed managing director and CEO of the airline.
Former chairman of the Tata Group Cyrus Mistry alleged that there were corporate governance
lapses between the two joint venture partners
1.7 AIR INDIA EXPRESS -background and history
Finally, on 8 October 2021, Air India, along with its low cost carrier Air India Express and fifty
percent of AISATS, a ground handling company, were sold for ₹18,000 crore (US$2.3
billion) to Talace Private Limited, a Tata Sons' SPV.
Air India Express is an Indian low-cost airline headquartered in Kochi, Kerala. It is operated by
Air India Charters Limited, a wholly owned subsidiary of Indian flag carrier airline Air India. It
operates around 649 flights per week to 33 destinations including the Middle East and Southeast
Asia. The airline carries around 4.3 million passengers every year connecting 140 city pairs. It
has secondary hubs in Thiruvananthapuram, Kannur, Tiruchirappalli, Kozhikode and Mangaluru.
History
Air India Express came into existence on 29 April 2005, with the launch of three flights that took
off simultaneously from Thiruvananthapuram, Kochi and Kozhikode. The airline was launched as
a low-cost carrier with the objective of providing convenient connectivity, to short-haul
international routes, in the Middle East and Southeast Asia for the Indian expatriate community.
Air India Express was Air India's response to the growing popularity of low-cost carriers
worldwide and within the region. As a low-cost carrier, the airline operates point-to-point flights
with multiple hubs all over India.
54
In December 2012, Air India ratified the proposal to move the headquarters to Kochi in January
2013 and to establish a new MRO[clarification needed] base at Thiruvananthapuram.
As per the audited accounts approved by the Airline’s Board of Directors on 27 October 2020,
the Airline’s operating revenues grew by over 25% from ₹4,172 crore (US$520 million) in fiscal
year 2018–19 to ₹5,219 crore (US$650 million) in fiscal year 2019–20. It is worth noting that the
revenue growth was achieved despite the adverse market conditions due to the onset of COVID-
19 during the last quarter of the fiscal.
On 9 November 2018, the airline posted a net profit of ₹262 crore (US$33 million), the third
consecutive year that it reported a profit, and registering an operating profit for the previous five
years.
As per the accounts placed and approved by the airline's board of directors, Air India Express
made a net profit of ₹296.7 crore (US$37 million) in fiscal year 2016–17. The revenues increased
by 14% recording a total revenue of ₹3,335 crore (US$420 million) Average daily aircraft
utilization rose to 12.2 hours from 11.3 hours. The capacity offered by the airline went up by
33%; the fleet size progressively increased from 17 to 23 aircraft; and the number of passengers
carried increased by 22%, to 3.42 million from 2.8 million in 2015–16.
On 3 September 2016 the company announced that it had earned a net profit for the first time
since its inception. As per accounts placed and approved by the airline's board of directors, the
airline made a net profit of 3,616,800,000 ₹ or ₹361.68 crore (US$45 million) in fiscal year
2015–16 against a loss of ₹ 61 crores (or 61,000,000) registered in fiscal year 2014–15. In the
fiscal year 2015–16, the airline witnessed a passenger load factor of 82.3% against 81.4% in the
previous year, while average daily aircraft utilization rose to 11.3 hours from 10.8 hours. The
airline carried around 2.80 million passengers against 2.62 million carried in the previous year.
55
Privatization
On 8 October 2021, Air India, along with its low-cost carrier Air India Express and fifty percent
of AISATS, a ground handling company, were sold for ₹18,000 crores (US$2.5 billion) to Talace
Private Limited, a Tata Sons' special-purpose entity. The airlines were later handed over to the
Tata Group. In 2023, it was announced that Vistara will likely merge with Air India, Air India
Express and AirAsia India by 2024, with AirAsia already under the Tatas, renamed as AIX
Connect. The airlines are set to operate as Air India only.
Awards and recognition
Air India Express has been named the ‘Iconic Brand of India -2021’ by The Economic Times.
The award was in recognition of its overall performance and efforts to ensure business continuity.
In 2021, Air India Express was adjudged as the 'Best Workplace for Women' by The Economic
Times.
Destinations
Main article:
Air India Express focuses on providing international flights from Tier II cities in India, to
the Persian Gulf region and South East Asia. The airline flies to 33 destinations as of May 2019
with a primary hub located at Cochin International Airport in Kochi .
On the domestic front, the airline operates from the states of Kerala, Delhi, Andhra Pradesh,
Tamil Nadu and Maharashtra. In its international arena, the airline mainly connects Indian
cities with Persian Gulf countries and Singapore in the east.
Chp-2 Research Methodology
56
2.8 Limitation of study
57
2.1 Recent Announcement Of TATA GROUP
The Tata group announced the consolidation of its airlines, Vistara and Air India. With this
consolidation, Air India shall be India’s leading domestic and international carrier with a
combined fleet of 218 aircraft, making it India’s largest international carrier and second largest
domestic carrier.
Air India, an airline fully owned by Tata Sons, has been the flag carrier of India. Tata Sons, via
its fully owned subsidiary, Talace Private Limited (“Talace)”, had acquired 100% stake in Air
India on 27th January 2022.
Vistara, a 51:49 Joint Venture between Tata Sons and Singapore Airlines Limited (“SIA”) was
established in 2013 and is India’s leading full-service carrier with international operations in
Middle East, Asia and Europe.
Vistara shall be merged with Air India post receipt of requisite approvals. As part of the merger
transaction, SIA shall also invest Rs 2,059 crore in Air India. Post the consolidation, SIA shall
hold 25.1% shareholding in Air India.
58
The transaction is estimated to be completed by March 2024.
On this occasion, Mr N Chandrasekaran, Chairman, Tata Sons said: "The merger of Vistara
and Air India is an important milestone in our journey to make Air India a truly world-class
airline. We are transforming Air India, with the aim of providing great customer experience,
every time, for every customer. As part of the transformation, Air India is focusing on growing
both its network and fleet, revamping its customer proposition, enhancing safety, reliability, and
on-time performance. We are excited with the opportunity of creating a strong Air India which
would offer both full-service and low-cost service across domestic and international routes. We
would like to thank Singapore Airlines for their continued partnership.”
Mr Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “Tata Sons is one
of the most established and respected names in India. Our collaboration to set up Vistara in 2013
resulted in a market-leading full-service carrier, which has won many global accolades in a short
time. With this merger, we have an opportunity to deepen our relationship with Tata and
participate directly in an exciting new growth phase in India’s aviation market. We will work
together to support Air India’s transformation program, unlock its significant potential, and
restore it to its position as a leading airline on the global stage.”
Tata Sons announced that it has signed a letter of intent to acquire 250 aircraft from European
manufacturer Airbus. Chief executive Campbell Wilson had said that Air India was planning to
expand its fleet and global network, aiming to increase its market share to 30% on both domestic
and international routes from India over the next five years.
Tata Sons on Tuesday announced that it has signed a letter of intent to acquire 250 aircraft from
European manufacturer Airbus. Air India will buy 40 wide-body A350 planes and 210 narrow body
aircraft.
Later on the same day it was announced that Air India would buy 220 Boeing planes for $34 billion.
59
This makes for a total of a 470-plane order for the airline. It is being touted as the largest
purchase in commercial aviation history.

The main objectives to show the growth of aviation with the help of tata group. As we know Vistara
is know ranks as best Airline in India and Southern Aisa. Air India is our a national airlines also
ranks in the best 50 airlines. Air India is certified as 3 star for the quality for there service.
 To explain the structure , issue and challenges of faced by TATA Group in aviation industry
 To study whether the existing capacity meets the requirement of passenger as far as
responsiveness to meet comfort, convenience etc, as defined in the level of service to be
provided/being provided is concerned
 To study whether the existing capacity meets the operational efficiency of all system
 To assess whether the existing infrastructure meets need of today
2.3 Scope Of The Study

 This study covered the scope of the growth of TATA Group in aviation industry
 It show all the details information of aviation company in which tata group is currently
investing
 There net profit will help us to know the company is currently in lose or profit
 This study will help us to know about there past profit so that will help us to know about
companies profit
60
2.4 Data Collection
The project is done by using secondary data , secondary data is use from various source to gather
the require information related to study on growth of tata group in aviation industry and I have
also collected information which show the tata group history background of company they
created,
There is an graphic representation which show there last five year net profit of the companies
which would help me to show the growth. The graphic representation will help to show in detail
information of capital invested . From the start five years and the then last five years data would
be provided to examine the growth well. As its a service industry its highly maintained and
looked after the one most important thing is customer service.
Source of data
The project is totally based on secondary data
 Article of J.R.D TATA Group
 Article on tata group in aviation
 Through internet
2.9 Limitation Of Study

Every research is conducted under some constraints and this research is not exception. Limitation
of this study are as follows
61
 As research is based on a sample, therefore the finding may not reveal the factual
information about the research problem, through an utmost care will taken to selct a truly
representative.
 Sudden change in the companies of tata group in aviation during the course may affect
the result.
 The study is not limited it don’t meets the boundaries as a collapse as the company is
well known all over the countries .
 As its based on secondary data it only can give information from articles and from the
internet
62
Chp-3 Literature Review
3.1 Article of J,R,D TATA
3.2 Tata Stories: 40 Timeless Tales to Inspire You.
3.3 Books of Tata group
63
3.1 Article Of J.R.D Tata Group
From Wikipedia
Not to be confused with Indian industrialist and founder of Tata Group, Jamsetji Tata.
Jehangir Ratanji Dadabhoy Tata (29 July 1904 – 29 November 1993) was an Indian aviator,
industrialist, entrepreneur and chairman of Tata Group.
Born into the Tata Family of India, he was the son of noted businessman Ratanji Dadabhoy
Tata and his wife Suzanne Brière. His mother was the first woman in India to drive a car and, in
1929, he became the first licensed pilot in India. He is also best known for being the founder of
several industries under the Tata Group, including Tata Consultancy Services, Tata Motors, Titan
Industries, Tata Salt, Voltas and Air India. In 1983, he was awarded the French Legion of
Honour and in 1955 and 1992, he received two of India's highest civilian awards the Padma
64
Vibhushan and the Bharat Ratna. These honours were bestowed on him for his contributions to
Indian industry.
Early life
J. R. D. Tata was born as king on 29 July 1904 to an Indian Parsi family in Paris, France. He was
the second child of businessman Ratanji Dadabhoy Tata and his French wife, Suzanne "Sooni"
Brière. His father was the first cousin of Jamsetji Tata, a pioneer industrialist in India. He had one
elder sister Sylla, a younger sister Rodabeh and two younger brothers Darab and Jamshed (called
Jimmy) Tata. His sister, Sylla, was married to Dinshaw Maneckji Petit, the third baronet of Petits.
His sister's sister-in-law, Rattanbai Petit, was the wife of Muhammad Ali Jinnah, who later
became the founder of Pakistan in August 1947. Jinnah and Rattanbai's daughter Dina Jinnah,
was married to Bombay Dyeing chairman Neville Wadia who was the son of Sir Ness Wadia and
Lady Eveylne Clara Powell Wadia. Neville and Dina had two children, Nusli Wadia and Diana N
Wadia. Nusli is the current chairman of the Wadia Group. Nusli married Maureen Waida and
they have two children, Jehangir Wadia and Ness Wadia.
As his mother was French, he spent much of his childhood in France and as a result, French was
his first language. He attended the Janson De Sailly School in Paris. One of the teachers at that
school used to call him L'Egyptien.
He attended the Cathedral and John Connon School, Bombay. Tata was educated in London,
Japan, France and India. When his father joined the Tata company he moved the whole family to
London. During this time, J. R. D.'s mother died at the age of 43 while his father was in India and
his family was in France.
65
After his mother's death, Ratanji Dadabhoy Tata decided to move his family to India and sent J. R.
D. to England for higher studies in October 1923. He was enrolled in a grammar school, and was
interested in studying engineering at Cambridge University. However, as a citizen of France J. R.
D. had to enlist in the army for at least a year. In between grammar school and his time in the
army, he spent a brief spell at home in Bombay. After joining the French Army he was posted
into a regiment of spahis. Upon discovering Tata could not only read and write French and
English, but could type as well, a colonel had him assigned as a secretary in his office. After his
time in the French Army, his father decided to bring him back to India and he joined the Tata
Company.
In 1929, Tata renounced his French citizenship and became an Indian citizen. In 1930 Tata
married Thelma Vicaji, the niece of Jack Vicaji, a colourful lawyer whom he hired to defend him
on a charge of driving his Bugatti too fast along Bombay's main promenade, Marine Drive.
Previously he had been engaged to Dinbai Mehta, the future mother of The Economist editor
Shapur Kharegat.
While he was born to a Parsi father, and his French mother converted to Zoroastrianism, J. R. D.
was agnostic. He found some Parsi religious customs like their funeral rites and their
exclusiveness irksome. He adhered to the three basic tenets of Zoroastrianism, which were good
thoughts, good words, and good deeds, but he did not profess belief or disbelief in God.
Career
When Tata was in tour, he was inspired by his friend's father, aviation pioneer Louis Blériot, the
first man to fly across the English Channel, and took to flying. On 10 February 1929, Tata
obtained the first license issued in India. He later came to be known as the "Father of Indian civil
aviation". He founded India's first commercial airline, Tata Airlines in 1932, which became Air
India in 1946, now India's national airline. He and Nevill Vintcent worked together in building
66
Tata Airlines. They were also good friends. In 1929, J. R. D. became one of the first Indians
to be granted a
67
commercial's license. In 1932 Tata Aviation Service, the forerunner to Tata Airline and Air India,
took to the skies. That same year he flew the first commercial mail flight to Juhu, in a de
Havilland Puss Moth.
The first flight in the History of Indian aviation lifted off from Drigh in Karachi to Madras with J.
R. D. at the controls of a Puss on 15 October 1932. J. R. D. nourished and nurtured his airline
baby through to 1953, when the government of Jawaharlal Nehru nationalised Air India. It was a
decision J. R. D. had fought against tooth and nail.
He joined Tata Sons as an unpaid apprentice in 1925. In 1938, at the age of 34, Tata was elected
Chairman of Tata Sons making him the head of the largest industrial group in India. He took over
as Chairman of Tata Sons from his second cousin Nowroji Saklatwala. For decades, he directed
the huge Tata Group of companies, with major interests in steel, engineering, power, chemicals
and hospitality. He was famous for succeeding in business while maintaining high ethical
standards – refusing to bribe politicians or use the black market.
Under his chairmanship, the assets of the Tata Group grew from US$100 million to over
US$5 billion. He started with 14 enterprises under his leadership and half a century later on 26
July 1988, when he left, Tata Sons was a conglomerate of 95 enterprises which they either started
or in which they had controlling interest.
He was the trustee of the Sir Dorabji Tata Trust from its inception in 1932 for over half a century.
Under his guidance, this Trust established Asia's first cancer facility, the Tata Memorial Centre
for Cancer, Research and Treatment, Bombay in 1941. He also founded the Tata Institute of
Social Sciences (TISS, 1936), the Tata Institute of Fundamental Research (TIFR, 1945), and the
National Center for Performing Arts.
68
In 1945, he founded Tata Motors. In 1948, Tata launched Air India International as India's first
international airline. In 1953, the Indian Government appointed Tata as Chairman of Air India
and a director on the Board of Indian Airlines – a position he retained for 25 years. For his
crowning achievements in aviation, he was bestowed with the title of Honorary Air Commodore
of India.
Tata cared greatly for his workers. In 1956, he initiated a programme of closer 'employee
association with management' to give workers a stronger voice in the affairs of the company. He
firmly believed in employee welfare and espoused the principles of an eight-hour working day,
free medical aid, workers' provident scheme, and workmen's accident compensation schemes,
which were later, adopted as statutory requirements in India.
He was also a founding member of the first Governing Body of NCAER, the National Council of
Applied Economic Research in New Delhi, India's first independent economic policy institute
established in 1956. In 1968, he founded Tata Consultancy Services as Tata Computer Centre. In
1979, Tata Steel instituted a new practice: a worker being deemed to be "at work" from the
moment he leaves home for work until he returns home from work. This made the company
financially liable to the worker for any mishap on the way to and from work. In 1987, he founded
Titan Industries. Jamshedpur was also selected as a UN Global Compact City because of the
quality of life, conditions of sanitation, roads and welfare that were offered by Tata Steel.
Support of emergency powers in 1975

Tata was also controversially supportive of the declaration of emergency powers by Prime
Minister, Indira Gandhi, in 1975. He is quoted to have told a reporter of the Times, "things had
gone too far. You can't imagine what we've been through here—strikes, boycotts,
demonstrations. Why, there were days I couldn't walk out of my house into the streets. The
parliamentary system is not suited to our needs."
69
Awards and Honour
Tata on a 1994 stamp of India
Tata received a number of awards. He was conferred the honorary rank of group captain by
the Indian Air Force in 1948, was promoted to the Air Commodore rank (equivalent to Brigadier
in the army) on 4 October 1966, and was further promoted on 1 April 1974 to the Air Vice
Marshal rank. Several international awards for aviation were given to him – the Tony Jannus
Award in March 1979, the Gold Air Medal of the Fédération Aéronautique Internationale in
1985, the Edward Warner Award of the International Civil Aviation Organisation, Canada in
1986 and the Daniel Guggenheim Medal in 1988. He received the Padma Vibhushan in 1955.
The French Legion of Honour was bestowed on him in 1983. In 1992, because of his selfless
humanitarian endeavours, Tata was awarded India's highest civilian honour, the Bharat Ratna. In
the same year, Tata was also bestowed with the United Nations Population Award for his
crusading endeavours towards initiating and successfully implementing the family planning
movement in India, much before it became an official government policy. In his memory, the
Government of Maharashtra named its first double-decker bridge the Bharatratna JRD Tata
Overbridge at Nasik Phata, Pimpri Chinchwad.
70
Death and legacy
Tata died in Geneva, Switzerland on 29 November 1993 at the age of 89 of a kidney infection.
He said a few days before his passing: "Comme c'est doux de mourir" ("How gentle it is to die").
Upon his death, the Indian Parliament was adjourned in his memory – an honour not usually
given to persons who are not members of parliament. He was buried at the Père Lachaise
Cemetery in Paris.
In 2012, Tata was ranked the sixth "The Greatest Indian" in an Outlook magazine poll,
"conducted in conjunction with CNN-IBN and History18 Channels with BBC."
3.2Tata Stories: 40 Timeless Tales To Inspire You
JRD Tata was the founder of Tata Airlines, which went on to become Air India. Way back in the
1940s and 1950s, this airline was the first Indian global entity, proudly taking the Indian flag to
international skies. In 1948, Air India inaugurated its first international service, from Mumbai to
London, a proud moment for the country.
JRD was determined to make Air India the best airline in the world, notwithstanding the fierce
competition from a host of other global airlines. For him, this was essential, because Air India
was not just an airline, but a proud carrier of India’s image across the world. During the inaugural
international flight, on which he also flew, he watched carefully for the reactions of passengers,
and was greatly relieved when everything went very well, including landing in London right on
time. He said, ‘It was for me a great and stirring event…. seeing the Indian flag displayed on both
sides of the Malabar Princess [the name of the aircraft] as she stood proudly on the apron at the
airports of Cairo, Geneva and London filled me with joy and emotion.’
71
"I think that Air India International has played not an unimportant part in raising the prestige
of India abroad. So, congratulations.” - Jawaharlal Nehru
Thereafter, he was obsessed with making the airline special, and he knew that this required the
highest standards of customer service and excellence. He told the airline’s employees, ‘I want
that the passengers who travel with us do not have occasion to complain. I want to establish that
there is no airline which is better liked by passengers, that is safer and more punctual, where the
food and services is better, and which sets a better image than Air India.’
JRD
As early as 1949, with constant attention to every small detail, these aspirations were coming
true. In fact, the prime minister of India, Pandit Jawaharlal Nehru, wrote to JRD Tata on 7 May
1949, specifically complimenting him on the high quality offered by the airline. Nehru wrote,
“This is
72
just a brief letter to express my great appreciation of the quality of the Air India International
service. I have now travelled on four occasions between India and England, and the more
experience I have of it, the better I like it. I think that Air India International has played not an
unimportant part in raising the prestige of India abroad. So, congratulations.”
Air India soon become legendary for its punctuality. Legend has it that people in Geneva, in those
years, could set their watches to the time at which the Air India flight flew over the city. In those
initial days, JRD would fly one of the aircraft himself once every fifteen days. During these
flights, he would insist on such high standards of accuracy that other pilots tried to dodge flying
with him. The historian RM Lala tells us that on one such flight, JRD asked his co-pilot, Capt
Visvanath for the ground speed. ‘145 miles per hour,’ replied Visvanath. JRD was not satisfied.
He took out his slide rule, worked out his own calculations, and responded, ‘It’s 145.5.’ Those
were the standards of accuracy he expected if the airline were to keep perfect time.
"His personal quest for excellence, his attention to detail and his ability to keep abreast of
new technologies relating to aviation and the airline business, provided the leadership that
made Air India an airline of choice, and gave it true global stature." - Ratan Tata
JRD Tata’s blue notes were extraordinary in their attention to detail and relentless push for
excellence in all matters big and small. After every Air India flight that he took, he would send
these ‘blue notes’ to the management, summarizing his observations, including encouraging
comments and scathing criticism. Here are some extracts from his notes in the year 1951, after he
had flown Air India to Europe and back home: ‘Chairs: I found on VT-DAR that some of the
seats recline much more than the others. As a result, those seats are more comfortable. I suggest
that all our seats be adjusted for a maximum reclining angle, except, of course, the rearmost seats
which are limited by bulkheads.’
73
And even more interesting is this note: 'The tea served on board from Geneva is, without
exaggeration, indistinguishable in colour from the coffee… I do not know whether the black
colour of the tea is due to the quality (of tea leaves) used or due to excessive brewing. I suggest
that the Station Manager at Geneva be asked to look into the matter.’
Because of such meticulous attention to detail and excellence, Air India topped the list of airlines
in the world in 1968 as per a survey done by the Daily Mail, London. In fact, in the at same year,
75 per cent of foreigners who came from countries with their own airlines. I have also heard that
when Singapore wanted to launch an airline (now it is famous as Singapore Airlines), Prime
Minister Lee Kuan Yew advised his team to study the high standards that had been set by Air
India. Ratan Tata, writing in a beautiful commemorative book where many Air Indians have
offered tributes to JRD Tata, said of him:
"Many of us who knew Jeh (JRD Tata) intimately knew that Air India was as
important to him as the industrial empire he headed. While he led the Tata empire
with distinction, Air India was his personal creation and personal passion. He built it
and it became the airline recognized by many international carriers as the gold
standards of service. No other enterprise in the country enjoyed that type of
international recognition. His personal quest for excellence, his attention to detail and
his ability to keep abreast of new technologies relating to aviation and the airline
business, provided the leadership that made Air India an airline of choice, and gave it
true global stature."
In my office, for the past three decades, stands a quote from JRD Tata, which guided his own
actions, and which inspires me every single day. He said: ‘One must forever strive for excellence,
or even perfection, in any task however small, and never be satisfied with the second-best.’
Remember, for instance, his note on tea and coffee.
Harish Bhat is brand custodian, Tata Sons. He is the author of several books
74
including #TataStories: 40 Timeless Tales to Inspire You. This is an excerpt from the book.
75
Photos courtesy Tata Central Archives. On the banner photo are, left to right: Delbar Munsif,
Colleen Hai, N. Dewan, Commercial Manager Inflight Service, Capt. SG Maulik, Jean Paes,
Inflight Supervisor, and Jimmy Mehrotra..
3.3 Books Of Tata Group
1. 1"Tata Airlines: The Story of India's First Airline" by Prasad Menon - This book provides
a detailed account of the Tata Group's pioneering efforts in establishing India's first
airline and the challenges faced in the early days of aviation in the country.
2. "Beyond Horizons: The Tata Story" by Gita Piramal - This comprehensive biography of
the Tata Group covers its history and growth across various industries, including
aviation.
3. "Vistara: A Star is Born" by Anil Padmanabhan - This book tells the story of Vistara,
the Tata Group's joint venture with Singapore Airlines, and its journey to becoming one
of India's leading airlines.
4. "AirAsia India: The Story of a New Low-Cost Carrier in India" by Anirban Ganguly -
This book explores the partnership between the Tata Group and AirAsia in launching
a low-cost carrier in India and the challenges faced in the highly competitive aviation
market.
76
5. "Turbulence: The Tata Group's Airline Ventures" by Raghavendra Verma - This book
provides an in-depth analysis of the Tata Group's foray into the aviation industry and
the factors that have contributed to its success.
6. "Taking Flight: The History of Aviation in India" by R. K. Bali - This book provides a
historical overview of the development of aviation in India and the role played by the
Tata Group in its early days.
7. "Tata Group: The Growth of a Giant" by K. M. Chinnappa - This book covers the
growth of the Tata Group across various industries, including aviation, and its evolution
into one of India's largest conglomerates.
8. "Tata: The Evolution of a Corporate Brand" by Morgen Witzel - This book explores
the evolution of the Tata brand and its transformation into a symbol of innovation and
excellence across diverse industries.
77
9. "The Tata Group: From Torchbearers to Trailblazers" by Arindam Chaudhuri - This
book provides insights into the management practices and strategies that have driven the
Tata Group's growth and success.
10. "Vistara: A Journey of Excellence" by Aditya Ghosh - This book provides a behind-
the- scenes look at Vistara's operations and the factors that have contributed to its
success in providing quality service to customers.
11. "Airline Operations and Management: A Management Textbook" by Gerald N. Cook and
Bruce Billig - This textbook covers various aspects of airline operations and
management, including case studies on the Tata Group's aviation ventures.
12. "The History of Indian Aviation: Civil and Military" by Satish Kumar - This book
provides a comprehensive history of aviation in India, including the contributions of
the Tata Group to its development.
13. "Boeing and Tata: The Making of a Partnership" by Mihir Sharma - This book explores
the strategic partnership between the Tata Group and Boeing and its significance for
the growth of the aerospace industry in India.
78
14. "India's Economic Development Strategies: 1951-2010" by Rajiv Kumar and N. R.
Bhanumurthy - This book provides a historical overview of India's economic
development strategies and the role played by the Tata Group in shaping the country's
growth trajectory.
15. "The Tata Group: A Pioneer in Corporate Social Responsibility" by Mohit Chandra -
This book explores the Tata Group's commitment to social responsibility and its
initiatives to create sustainable and inclusive growth in India.
79
Chp-4 Data Analysis, Interpretation And Presentation
4.1 Graphic representation of Vistara revenue turnover income loss
4.2 Graphic representation of Air India revenue turnover income loss
4.3 Graphic representation of Air Aisa (India) private limited
company revenue turnover income loss
4.4 Graphic representation of Air India Express revenue turnover income loss
80
4.1 Graphic Representation Of Vistara Revenue Turnover Income Loss
81
Looking at Figure 1, the domestic connectivity of airlines in India has been growing steadily
since financial year 2016. However, capacity utilization in the international segment saw a
decline in financial year 2017 due to decline in foreign tourist arrivals, owing to slowdown in the
services sector, but it later surged to 88.55% in financial year 2019. It can be said that the growth
in demand was much more than the growth in supply, which resulted in greater utilization of
airlines in financial year 2019.
The sector has not been performing as per the expectations of its stakeholders since 2018. Lack of
trained staff for airline companies often leads to operating inefficiencies, and the industry
struggles to retain talent. Intense competition is one of the leading factors causing declining wage
prices, besides affecting the prices of air tickets. Inefficiencies caused due to obsolete airport
infrastructure and air traffic control foundation also add to the woes of the sector. Although
privatization of airports is underway, the results are expected to be seen only after a few years.
Due to COVID-19, the aviation industry has suffered in several different ways and with airline
services being the most affected. It is expected that the losses due to reduced air traffic would go
82
up to US$113 billion. The COVID-19-affected areas have seen a 30% drop in bookings because
of which the number of flights dropped by 20%–30%. Internal traffic growth is also largely
affected when local commuters postpone or cancel their travel plans (Aviation, 2020).
The Airports Authority of India (AAI), responsible for overseeing the management and
maintenance of aviation infrastructure in India had reported a reduction in its revenue by 92%
from April 2020 to June 2020 as compared to 2019 values. The Investment Information and
Credit Rating Agency India Limited (ICRA) expects financial year 2021 to see a decrease of
approximately 41%–46% in domestic passenger traffic and approximately 65%–72% in overseas
passenger capacity. Therefore, the revenue of the Indian aviation industry is expected to see a
sharp decline. Profits from this industry will also be affected by low revenues and high fixed
costs For Indian carriers, Q1 is generally seen to be the strongest period, while Q2 the weakest.
With the shutdowns/lockdowns playing in Q1, any gradual improvement in the revenues of the
Indian aviation industry is expected to be seen only from Q3 of financial year 2021.
83
Figure 2 suggests a decline in the domestic passengers from May 2020. The pandemic struck
harder during May 2020, which caused a decline of 98% of passenger numbers, year-on-year (y-
o-y). However, as the Indian carriers restarted their operations in a calibrated manner, domestic
operations stood at 45% capacity by the last week of June, which led to the y-o-y decline in
passengers from 98% in May 2020 to 77% in August 2020.
84
Figure 3 shows that the aviation revenue was impacted significantly due to the COVID-19
pandemic. On a y-o-y-based analysis, it is seen that there was a decline of revenue by a huge
margin across all subdivisions of the Indian aviation industry. Employment also declined in
airline companies, airports, ground-handling agencies and cargo operators.
85
86
Although Vistara’s revenues have grown at 190% CAGR from 2016 (Figure 4), its earnings
before interest, taxes, depreciation and amortization, (EBITDA); earnings before interest and
taxes (EBIT); and profit after tax (PAT) margins are constantly below zero even as its parent
companies are continuously pumping in equity capital y-o-y. Aviation turbine fuel (ATF) costs,
aircraft lease rents, and repair and maintenance costs have also seen a higher increase as
compared to the increase in revenue. This is also observed in the per passenger metrics of Vistara
from 2015–2016 to 2019– 2020, where the revenue per passenger and operating expense per
passenger saw a decrease in the gap till 2017–2018, but since then, the gaps have somewhat
widened, owing to increased losses for the airline company (Figure 5).
Vistara somewhat benefitted from the downfall of Jet Airways in April 2019 as it got access to
the latter’s airport slots and premium class traffic. It also inducted seven Boeing 737 aircraft
flown by Jet Airways and increased its fleet from 22 to 40 by March 2020. The number of
destinations rose from 24 to 36, including 5 foreign destinations by the end of financial year
2019–2020.
Coming to the financial aspect, it is startling to see that the company recently took a lot of long-
term debt, increasing the debt equity ratio from 0 to 1.1 in financial year 2020.
Vistara also increased its equity by infusing more capital, which will help the airline maintain
liquidity as it has had to dip into cash reserves post the pandemic to cover fixed costs and
payments to aircraft lessors. Domestic flights were suspended until May 25, after which travel
restrictions were eased gradually. The ban on flights led to a significant revenue erosion for the
airlines. But repeated infusion of capital without trying to improve or change the business model
does not present a picture of sustainable growth for the airline.
87
However, the management of the airline is confident about their long-term expansion plans.
4.2 Graphic Representation Of Air India Revenue Turnover Income Loss

ANALYSIS OF THE FINANCIAL/PHYSICAL PERFORMANCE Stand-alone I. REVENUE
Total revenue increased from Rs.238,449.4 Million in 2017-18 to Rs.264,305.9 Million during
2018-19 (increase of Rs.25,856.5 Million) Operating Revenue increased from Rs.229,481.3
Million in 2017-18 to Rs.255,088.3 Million during 2018-19 (increase of Rs.25,607.0 Million)
Passenger Revenue increased from Rs.177,440.9 Million last year to Rs.207,741.6 Million during
2018-19 (increase of Rs.30300.7 Million)
88
II EXPENDITURE The total expenditure incurred during the year was Rs.349,053.9 Million as
compared to the previous year’s figure of Rs.291,826.8 Million (increase of Rs.57,227.1 Million)
Operating expenses increased from Rs.247,185.9 Million during 2017-18 to Rs.301,940.9
Million during 2018-19 (an increase of Rs.54,755.0 Million) There was an increase in staff cost
by 2% from Rs.29,463.9 Million in 2017-18 to Rs.30052. 3 Million during 2018-19 Fuel cost
increased by 36.3% from Rs.73,626.9 Million in 2017-18 to Rs.100,344.6 Million during 2018-
19.
Consolidated I. REVENUE Total Revenue increased from Rs.266,292.3 Million in 2017-18 to

Rs.298,007.0 Million during 2018-19, an increase of 11.9%. Passenger Revenue increased from
89
Rs.210,691.1 Million in 2017-18 to Rs.247,283.9 Million during 2018-19, an increase of 17.36%.
90
Other Revenue decreased from Rs.20,909.1 Million during 2017-18 to Rs.12,242.4 Million
during 2018-19, decrease of 41.45%. Group Operating Loss was Rs.28,757.5 Million in 2018-
19 as against the Operating Loss of Rs.4,412.5 Million during previous year 2017-18. Group had
shown Consolidated Net Loss for 2018-19 at Rs.88,802.2 Million which was more by
Rs.30,493.3 Million compared to the previous year's loss of Rs.58,308.9 Million. II.
EXPENDITURE There was an increase in Total Expenses by 19.1% from Rs.310,752.6 Million
during 2017- 18 to Rs.370,160.4 Million during 2018-19. There was an increase in Staff Cost by
3.4% from Rs.31,791.4 Million in 2017-18 to Rs.32,882.9 Million during 2018-19. Fuel Cost had
increased by 37.3% from Rs.84,134.6 Million during 2017-18 to Rs.115,558.9 Million during
2018-19.
91
Survey time period
FY 2016 to FY 2021
92
Supplementary notes
India's financial year begins in April and ends in March. For example, FY 2020 started in
April 2019 and ended in March 2020.
One Indian rupee is equal to 0.012 euros and 0.012 dollars (as of Nov 2022).
Values have been rounded for clarity.

Previous reports have been accessed for historical data.
At the end of fiscal year 2021, the total income of Air India stood at over 121 billion Indian
rupees. Meanwhile the net loss of the airline reached around 71 billion rupees. Air India was sold
by the Indian government to Tata Group in October 2021.
4.3 Graphic Representation Of Air Aisa (India) Private Limited Comapany
 Operating loss of INR 41.8 crore

 Weak Unit Revenues at INR 2.88/seat-km (operational) and INR 3,702 per passenger.
 INR 1,380 per passenger short of operationally breaking even.
 Unit operational costs increased by 12% to INR 3.93/seat-km compared to Q4FY2015.
 Increase in Airport Costs due to Delhi operations largest contributor to increased unit
costs.
 Silently launched its second Bengaluru-Vishakhapatnam frequency on 14th August.
 Average utilization goes upto 13hours per aircraft per day.
 Highest average stage length and very high average cargo uplift per flight.
93
 Ancillary percentage of revenue increases, on par with IndiGo’s.
 Loss in Q2’16 forecasted, hopes of operational break-even only in Q3’16.
AirAsia India, an associate company of AirAsia Berhad, which owns 49% of the joint venture
with Tata Sons and Telstra Tradeplace, reported an after tax loss of INR 44.1 crore for the quarter
ending June 30th, 2015. The airline realised an operating loss of INR 41.8 crore in the same
quarter. The first quarter is traditionally a season of peak domestic travel demand.
The airline realised an operational RASK (Revenue per available seat kilometre) of INR
2.88/seat- km, which is only 5% better than what was realised in Q4FY2015. The fourth quarter
is traditionally a season of low domestic travel demand.
The airline realised an operational CASK (Cost per available seat kilometer) of INR 3.93/seat-
km, which is 12% higher than what was realised in Q4FY2015.
94
The largest increases in unit costs were due to increases in unit maintenance costs (an increase by
105%) and unit airport costs (an increase by 175%). Increase in unit airport costs contribute to
65% of the airline’s increase in operational CASK. This is due to the airline operating from
Delhi’s T3, where AirAsia India may not enjoy the same cost waivers and benefits it enjoys at
Bengaluru airport. Maintenance of the aircraft occurs at Hyderabad Shamshabad’s MAS-GMR
facility, which requires empty aircraft (non revenue flights, ferries) to be conducted, which is a
source of cost. The opening of Delhi base may have contributed to the increase in maintenance
costs.
Fuel expense of INR 1.28/seat-km is similar to what was realised in Q4’15, and similar to the unit
fuel costs of SpiceJet in Q1’16.
Due to the larger fleet size and 47% increase in capacity (in ASK) deployed in Q1’16 over
Q4’15, unit staff costs have fallen by nearly 10%.
Unit lease costs have very slightly gone up, perhaps due to the two additional A320s in the
airline’s fleet not being fully utilised for the first couple of weeks of opening the Delhi base.
95
Other operating expenses went up 21% on a unit basis.
Overall, starting operations from Delhi has negatively impacted the airline’s costs, largely due to
higher airport charges and the absence of benefits at the GMR airport.
In the quarter, the utilisation of aircraft was not to the fullest. Delhi operations started midway
into the quarter, and Imphal and Vishakhapatnam operations started later in the quarter. On 14th
August, AirAsia in total silence launched its second Bengaluru-Vishakhapatnam frequency (we
had talked about this exactly 4 months earlier), increasing the average aircraft utilisation to 13
hours. As utilisation of the assets get better, certain costs are expected to go down. With sales tax
96
on fuel at
97
Vishakhapatnam at only 1%, AirAsia India tankers fuel from Vishakhapatnam to Bengaluru, for
the next flight – Bengaluru to Cochin. While these common cost saving measures are good, the
increase in unit airport charges may be concern.
Launching of new routes, and launch promotional fares are believed to have impacted unit
revenues.
The airline realised an average fare per passenger of INR 3,350 per passenger, which is 16%
more than Q4’15. Ancillary revenues have increased to INR 352 per passenger, 60% higher than
Q4’15. Ancillary revenue, as part of total operational revenue, has increased from 8% in Q4’15 to
10.6% in Q1’16. 10.6% is similar to IndiGo’s percentage of ancillary revenue to total operational
revenue.
AirAsia India’s per passenger revenue was nearly INR 1,380 short of operationally breaking even.
Average load factors in the airline (passengers flown) has increased to 81% in Q1’16. The airline
flew its millionth passenger around August 5th (we had rightly predicted this towards late June).
Cargo carried by the airline in the quarter was a very high average of 1,074 kg per flight, which is
the second highest for a LCC in India, after Go Air. IndiGo on average carried an average of 615
kg of cargo (freight and mail) per flight.
The average stage length at AirAsia India was 1,150km, which is the highest amongst LCCs in
India.
4.4 Graphic Representation Of Air India Express Revenue Turnover

Income Loss
98
“This turnaround should be attributed to the sustained efforts of all the Air India Express
employees and the tremendous trust placed on us by our valued passengers. In purely business
terms, the positive net outcome may be attributed to record levels of aircraft utilisation, PLF
(Passenger Load Factors) and yields achieved in the year. Of course, low ATF rates also helped,”
Sundar to ET.
Analysts said a government company turning profitable is laudable. “When a private sector
company turns profitable in today’s time, you compliment it once. But when a government
company takes advantage of the situation and turns profitable, it has to be doubly lauded. I say
that because any government company has its own systemic disadvantages, which a private
company will never have,” said Jitendra Bhargava, former executive director of Air India. He
said that the moment a company turns profitable from a long period of loss, the company started
thinking positive and ‘that will be the biggest achievement of these improved
numbers’. The financial results show that the airline’s biggest benefit came from reduced oil
prices that led to a 28.6% reduction in fuel during the FY16 fiscal from FY15. The overall
99
reduction in cost was to the tune of 4.7%. The low-cost carrier, which operates a large part of its
flights on the Gulf routes,
10
0
also saw 11.3% increase in revenues.
The increase in revenues came by flying more people per flight and all so utilising its aircraft
more to operate more flight with the same fleet. An airline official, who did not wish to be
identified, said that the airline has registered such huge profits after paying about Rs 240 crore as
revenue share to its parent Air India. According to the agreement between the two, AI Express
has to share about 11% of its revenues with Air India for using its brand
name. “The major addition to the revenues came from earnings of Rs 56 crore from ancillary
revenues, which were almost zero in FY15. We earned Rs 46 crore from excess baggage charges
and Rs 10 crore from advance seat selection charges,” said the official, who requested
anonymity.
Chp-5 Conclusions Suggestion And Bibliography
5.1 Conclusion
5.2 Suggestion
5.3 Bibliography
10
1
5.1 Conclusion
With the handover, Tata Group now has control of four airline brands, each with its own profile,
culture, and cost basis. The integration will entail examining common systems, redundant
capacity, and prices while keeping competition policy in mind. Merging common systems,
eliminating redundant capacity, and minimizing expenses are all part of successful integration.
10
2
The full-service carrier Air India, its low-cost unit Air India Express, and a 50% share in the
airline's ground and cargo handling business, Air India SATS Airport Services, are all managed
by the Tata Group (AISATS).
The new owner of Air India already owns Vistara, a full-service joint venture between the Tata
Group and Singapore Airlines, and AirAsia, a joint venture between Tata Sons and Malaysia's
AirAsia Investment.
As the initial euphoria over the successful handover of Air India to the Tata Group wears off,
speculation about how the salt-to-software conglomerate will turn the national flag airline around
has begun. Experts say a seamless integration of the group's existing air carriers with the formerly
government-owned airline will be critical to the successful takeoff of the much-discussed
privatization.
5.2 Suggestion
Less is more. At least, that’s what investors would prefer in India’s cut-throat aviation world, in
terms of the number of airlines vying for a pie of the market. The good news is the first seeds of
consolidation were sown last week. Tata Sons Pvt. Ltd is buying out the majority of its joint venture
partner’s stake in AirAsia India Ltd for ₹276 crore. While this will raise its stake from 51% to
83.7%, there is a call option for the remaining stake held by AirAsia as well.
10
3
With reported plans to buy Air India as well, Tata group is clearly putting its money where its
heart is. This is in addition to its 51% stake in the full-service carrier, Vistara. “If the Tatas
successfully acquire Air India and consolidate Vistara and AirAsia India under its brand, Indian
aviation will convert from a six to four-player industry comprising Tata group, IndiGo, SpiceJet
and GoAir," ICICI Securities Ltd’s analysts said in a report on 30 December.
5.3 Bibliography
https://www.tata.com/newsroom/business/tatas-aviation-jrdtata-airasia-vistara
https://www.airvistara.com/in/en/company-info
https://en.wikipedia.org/wiki/Vistara
https://en.wikipedia.org/wiki/Air_India
https://en.wikipedia.org/wiki/AIX_Connect
https://en.wikipedia.org/wiki/Air_India_Express
https://en.wikipedia.org/wiki/J._R._D._Tata
https://journals.sagepub.com/doi/full/10.1177/25166042211028381
https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-
express-turns-profitable-for-the-first-time/articleshow/53988077.cms
https://www.statista.com/statistics/587955/financial-performance-air-india/
https://theflyingengineer.com/2015/08/21/airasia-india-reports-an-after-tax-loss-of-inr-44-12-
crore-for-q1fy2016/
10
4
10
5

Musu Pro

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Musu Pro

Uploaded by

Copyright:

Available Formats

Project Report

STUDY ON GROWTH OF TATA GROUP IN AVIATION INDUSTRY

A Project Submitted to University of Mumbai for partial completion of the

Ms. MUSRAT ANSARI

T.Y.B. Com (Accounting & Finance) Semester VI

Under the Guidance of

R. K. Talreja College of Arts, Science and Commerce,

Centre for Management Courses

Department of Accounting & Finance

R. K. Talreja College of Arts, Science and Commerce,

Centre for Management Courses

R. K. Talreja College of Arts, Science and Commerce,

Centre for Management Courses

R. K. Talreja College of Arts, Science and Commerce,

Centre for Management Courses

This is to certify that Mr./Ms. MUSRAT ANSARI ROLL NO 20401 of

(Name &amp; Signature with Date)

(Name &amp; Signature with Date)

2.1 Recent announcement of TATA Group

2.2 Objectives of the study

2.3 Scope of the study

2.4 Recent announcement of TATA Group

2.5 Objectives of the study

2.6 Scope of the study

2.7 Limitation of study

3.1 Article of J,R,D TATA

3.2 Tata Stories: 40 Timeless Tales to Inspire You.

3.3 Books of Tata group

4.1 Graphic representation of Vistara revenue turnover income loss

5 CONCLUSION SUGGESTION AND BIBLIOGRAPHY

Aviation includes the activities surrounding mechanical flight

Getting on with the times

What lies ahead

Did you know?

• AirAsia India has 23 aircrafts, reaching 19 destinations with 165 flights.

Mr. Vinod Kannan, Chief Executive Officer

Mr. Niyant Maru, Chief Financial Officer

Mr. Vinod Bhat, Chief Information Officer & Chief Ethics

Counsellor Mr. Deepak Rajawat, Chief Commercial Officer

Mr Pankaj Handa, Divisional Vice President – Ground Operations

Affairs Capt Hamish Maxwell, Senior Vice President – Flight Operations

Vistara codeshares with the following airlines:

Vistara has interline agreements with the following airlines:

1.5 Air India -Background And History

As Tata Air Services

Tata Air Service

Vintage photograph of an Air India plane

Tata Sons' Airline Timetable Image, summer 1935

Air India International 1948 stamp of India

1.6 Airasia (India) Private Limited Company -Background And History

AirAsia India is headquartered in the Alpha 3 Building on the property of Kempegowda

1.7 AIR INDIA EXPRESS -background and history

Awards and recognition

Chp-2 Research Methodology

2.6 Objectives of the study

2.7 Scope of the study

2.8 Limitation of study

2.2 Objectives of the study

2.3 Scope Of The Study

2.9 Limitation Of Study

3.1 Article of J,R,D TATA

3.2 Tata Stories: 40 Timeless Tales to Inspire You.

(Name & Signature with Date)

(Name & Signature with Date)