As TATAs take over the financially struggling AIR India, the airline is expected to expand its domestic and international operations in the foreseeable future. This has resulted in GMR run Delhi airport expecting a 25% surge in the next three years. The Indira Gandhi National Airport is already a hub for AIR India, Vistara which also has TATAs majority interest, and Indigo Airlines and is also the country’s largest aerodrome.
Privatization of Air India – an Important Milestone
According to a report from news18.com, statistics show that Delhi airport accounts for 15% of the hub traffic as of now. In the aviation industry hubs serves as a key point for airlines to operate flights to various destinations, including stopovers and connecting services. Moreover, as the Karlock-Jalan consortium takes over the ownership of Jet airways and restarts its operations next year, they are planning to make Delhi airport the base of its operations. Previously, When the airline was grounded in 2019 it had been running its operations from Mumbai as the base.
Earlier on October 11th a Letter of Intent was issued to TATA as they won the bid to acquire a 100% stake at AIR India from the government beating the bid from a consortium led by Spice Jet promoter Ajay Singh. The International Monetary Fund on Monday described the sale of India’s flag-bearing airlines Air India as an important milestone in India’s privatization efforts. TATA after emerging as the winning bidder is expected to bring normalcy to the operations and management of loss-bearing airlines.