Mumbai, Nov 29 (IANS) Tata Sons Chairman N. Chandrasekaran on Saturday said that Air India is not just a business venture for the Tata Group but a responsibility they are committed to fulfilling.

Speaking at an event here to mark the 121st birth anniversary of J. R. D. Tata, he underlined both the challenges and the long-term promise of India’s aviation sector.

“I firmly believe for the Tata Group, Air India is just not a business opportunity. It’s a responsibility,” he said.

“Air India is going through a major transformation, but the journey has been slower than expected because of global supply chain problems,” Chandrasekaran said.

He added that shortages of aircraft parts, delays in infrastructure, and unpredictable timelines for new planes have made planning extremely difficult for the airline.

He said the aviation sector worldwide is facing similar pressures, with rising costs and thin profit margins adding to the strain.

Tata Group took over the loss-making Air India and Air India Express in January 2022 and launched an ambitious five-year plan to modernise operations.

However, delays in aircraft upgrades and deliveries have pushed timelines back.

Despite these hurdles, Chandrasekaran said the group remains firmly committed to rebuilding the airline.

He also highlighted the strong growth potential of India’s aviation market. According to him, every one per cent rise in India’s GDP leads to about 2 per cent growth in domestic air travel.

If India continues to grow at around 8 per cent annually, the aviation sector could expand by nearly 16 per cent each year.

He said this trend will likely continue for the next three decades, opening up a long period of opportunity for airlines and related industries.

Chandrasekaran described the coming years as an exciting phase for India’s economy and aviation sector but reiterated that the environment remains unpredictable.

“Every plan becomes difficult because of the situations you face in this area,” he said, referring to global disruptions affecting the industry.

Despite the challenges, he said the Tata Group remains determined to transform Air India and restore its legacy as a leading global airline.

–IANS

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