Regardless of how slumped the airline industry is right now; Air India is getting a lot of interest from the Tata Group. The state-owned airline is being disinvested by the government because of its debt and continuous operational losses. With the COVID-19 pandemic and the break-in domestic as well as international travel, Air India was affected majorly. Tata Group has a special place for Air India in its heart because it was the founder of the airline back in 1932. Tata Group has decided to bid for Air India through its another airline joint-venture (JV), AirAsia India.
Air India Bidders Expected to Make Move By September 15
According to a report from ET Online, it won’t be long now before the government sees bids coming in for Air India. The reason why this has taken so long is that the government and the bidders were working together to solve several of the issues the airline had.
The government is planning to sell more of its loss-making public sector units (PSUs). Many have criticised the government for selling state-owned companies, but at the end of the day, it will only help the economy grow even further.
Tata Group might just be the successful bidder in the end. The group has plenty of interest and experience in the airline industry, starting with AirAsia India, Vistara, and previous experience with Air India before selling it off to the government.
Air India needs a solid rebranding. Right now, people see the airline as a sub-standard company in front of IndiGo, SpiceJet, Vistara and Go First. The company can take the modern approach by getting the influencers and vloggers involved and also cleverly market its brand in a new way. Without a rebranding, Air India would be looked at the way it is looked at right now, and that won’t be beneficial for the company.