Tata Sons plans to give Air India a detailed makeover to better place the airline in the competitive skies. This includes streamlining operations, cutting costs, bringing in a new set of directors and making the carrier mechanically sound like its counterparts. Tata Sons is paying $2.4 billion to buy a 100% stake in the debt-ridden airline.
A Tata Group executive said once the deal is settled, TCS would step in to manage the A to Z of Air India’s IT and digital operations. TCS is the technology partner for Vistara, a joint venture between Tata Sons and Singapore Airlines. It also manages the IT and digital systems of Singapore Airlines. In fact, TCS runs the IT systems and applications of most national carriers of other countries except India’s. Tata Sons through TCS wants to advance Air India’s proficiency and reduce operative and maintenance costs.
Also, the carrier will get a new CEO. Sources say Saurabh Agrawal and his finance team from Tata Sons would have to fix the commercial problems at Air India by refinancing costly debt, reducing lease liabilities and re-establishing vendor contracts. A source believes there are high chances that a foreign national will be selected to lead Air India.
The government has been trying to sell Air India for quite some time now but the process saw several hiccups, including that of the pandemic. Well, we are happy that the airline will finally get a long pending makeover by Tata Sons.