The recent reports suggest that the Tata Group is designing a 100-day plan for its newly acquitted airline Air India to better the operational and service standards of the airline. This plan will be executed under the supervision of an expatriate Chief Executive and the rumors suggest that former Delta president Fred Reid is among the favorites in the list of the probable candidates for the Chief Executive Officer (CEO) post. The 100-day plan for the national carrier will focus on enhancing on-time performances of the airline along with issues pertaining to passenger complaints and call centers.
Tata Group to Focus on Improving Basic Standards
A source who requested to be anonymous said in a statement that the 100-day plan will primarily focus on improving basic standards. He said that these issues might not be completely resolved in just 100 days but improvements can be made. He also told that the statistics in regards to on-time performance or passenger complaints are reported monthly and will be available for everyone to see. The Tata Group however prohibited from making any comments on the issue. The group said that Air India share-purchase transaction is currently underway and they are working with the Indian government to complete the process. The group will resist affirming any speculation until the deal is completed.
Earlier, the share purchase agreement was signed between Tata Group and the central government. The agreement includes the sale of Air India to Talace Pvt. Ltd. a subsidiary of Tata Group for Rs 18000 Crores. Previously, the bid for the purchase of Air India was accepted by the government where Talace Pvt. Ltd. would pay Rs 2700 Crores in cash and would take over Rs 15,300 Crore of debt in order to fully acquire the airlines.
It is also being speculated that Tata Group will be bringing an expatriate candidate for the designation of CEO and already has shortlisted more than a few candidates among which Fred Reid is probably the favorite candidate. Although Tata Group already has stakes in two ventures – Vistara and Air Asia, they don’t have an aviation expert of their own. The newly acquired Air India will start afresh and definitely needs an experienced expatriate CEO to compete in the international market and increase the market share on the global routes.
