Tata Sons' Air India Acquisition: Balancing Business Potential with National Duty and Heritage.

Tata Sons Chairman N. Chandrasekaran has emphasized that Air India's ongoing transformation is more than just a business opportunity for the Tata Group; it's a significant responsibility. Speaking on Saturday, November 29, 2025, Chandrasekaran acknowledged the continuous challenges facing the aviation sector, including global supply chain disruptions that impact the availability of aircraft parts, infrastructure, and new fleet additions.

The Tata Group acquired the loss-making Air India and Air India Express in January 2022 and has since been implementing an ambitious five-year transformation plan. The chairman admitted that progress has been slower than expected due to global supply chain issues causing delays in aircraft upgrades and deliveries. "Every plan that you have is becoming difficult because of the situations that you face in this area," he stated, highlighting the unpredictable environment affecting the airline's plans. Unpredictable factors, such as geopolitical issues that force changes in flight routes and increase fuel costs, add to the operational challenges.

Despite these hurdles, Chandrasekaran remains optimistic about the potential of India's aviation sector. He pointed out that every 1% growth in GDP translates to a 2% growth in the domestic aviation sector. With India projected to grow at 8%, the aviation industry is expected to grow by 16%, a trend anticipated to continue for at least the next three decades. He noted that this period would be an exciting phase for both economic and aviation growth. Connectivity is crucial for this growth, supporting India's ambition to become a USD 5 trillion economy and beyond.

Chandrasekaran highlighted the capital-intensive nature of the aviation business and its characteristically thin profit margins. In light of these factors, the Tata Group remains committed to building a world-class airline, viewing it as a core element of their long-term vision and a responsibility to the nation.


Written By
Diya Menon is a dynamic journalist covering business, startups, and policy with a focus on innovation and leadership. Her storytelling highlights the people and ideas driving India’s transformation. Diya’s approachable tone and research-backed insights engage both professionals and readers new to the field. She believes journalism should inform, inspire, and empower.
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