Air India, which is changing, is not only an economic opportunity but also a "responsibility" for the Tata Group, according to Tata Sons Chairman N Chandrasekaran on Saturday.
In his keynote speech at a celebration of the 121st birthday of JRD Tata, the founder of the Tata Group, Chandrasekaran stated that when the group acquired Air India in 2022, he was asked why the company was venturing into the aviation industry.
However, I am convinced that Air India offers more than just a commercial opportunity for the Tata Group. It's an obligation," he stated.
"The domestic aviation industry will grow by 2% for every percentage increase in GDP. The aviation sector expands by 16% if India grows by 8%.
And for the next thirty years at the very least, this game will continue. "So, this is going to be a very exciting phase of economic growth, and for the aviation sector in particular," he stated.
"But it's not easy." It's getting harder because the industry is constantly facing difficulties. He claimed that the availability of new aircraft, infrastructure, and parts is uncertain due to the global supply chain.
Additionally, Chandrasekaran noted that the aviation industry has narrow profit margins and is a very capital-intensive enterprise.
He called the 8.2% GDP growth in the July-September quarter "just fabulous," pointing out that India's economy is already the fourth largest and rising to the third. Additionally, he stated that India will grow by at least 7% this fiscal year.
He claims that public infrastructure spending will also promote growth in addition to rising consumer confidence and consumption-led growth.
Therefore, our economy will grow to be worth $5 trillion and then more. We'll accomplish this more quickly, add each next trillion dollars at a slower rate, and generate intriguing opportunities. However, connection is one of the elements that must function if this is to occur, he stated.
He stated that managing many areas of the industry is necessary. "Geopolitics is unexpected. Your flight paths will abruptly alter since you are unable to fly over an area. Your fuel expenses increase, and your flights take longer. All of this needs to be managed," he stated.
According to Chandrasekaran, there is a huge demand for air travel, and Indians' aspirations are rising since everyone wants to travel and be connected. He then on, "I think our commitment is to build a world-class airline."
