A HANDOVER IS ONLY A START FOR AIR INDIA: Strip way all the emotions from the transfer of Air India’s ownership from the Indian government to Tata Sons, and that’s when cold reality shows up on the historic deal. This is the point where Tata will have to start taking decisions, immediate and those for the longer term, about how to drastically cut down on the losses the airline continues to spew forth. Even without the many COVID-19 created disruptions, Air India was in a precarious position, kept flying because the government had to keep on footing the bill to keep it running. Injecting fresh funds into Air India by the Tatas will be the easy part, but will not deliver the turnaround that the airline desperately needs. Because if fresh funds was the answer to Air India’s woes, the many cash infusions from the government over the decades would have resolved its problems. That hasn’t happened. What Air India needs are surgical changes, and these will be painful. Thankfully, the 9,000 strong workforce will be insulated for a 12-month period as per the assurances the Tata officials have given the government. Air India will not be the only airline in the country requiring a strategy that will keep it flying. SpiceJet, the budget carrier, has just received some help from the Supreme Court against an order to wind it down. Other carriers are in not much better shape either. So, if the Tatas can make best use of their acumen to set right Air India, a legacy would have been set right - even if has taken 70 years. [COMMENT BY: Manoj Nair, Business Editor]
ANI