Tatas and Aviation: 5 interesting facts

The Tatas may have conquered every other major sector but the aviation dream has always eluded them

The Tata group with a combined market cap of over 6 lakh crore rupees, with over 100 operating companies spread over 7 sectors has always nurtured the dream of operating an airline. But despite several aggressive attempts and a personal interest from Ratan Tata, the group's Chairman Emeritus, the Tatas have only managed to see their moves thwarted in one way or the other. 

Lets take a look at the the top 5 interesting facts on the Tata group's troubled history with aviation
 

1)  JRD Tata, former Chairman of Tata Group, founded India's first commercial airline, Tata Airlines in 1932, which became Air India in 1946, now India's national airline. He piloted its first commercial flight on Oct 15,1932 from Karachi to Mumbai in a singleengine Puss Moth aircraft. On 25 August 1953, Govt of India nationalised Air India  

 

 

2) Tata Group tied up with Singapore Airlines and tried launching a airline twice, ever since aviation was liberalized in the 1990s. Both attempts could not succeed and after seven years of inaction, Tata Group withdrew its application in 1998

 

3) Years later, in an interview, Ratan Tata said that a businessman had told him that he needs to shell out a bribe to get the aviation licence. 'look if you want the airline, this is what you must pay. You know the minister wants that, Rs. 15 crore'," Tata quoted the businessman. Ratan Tata said that he refused to be drawn into any such option as he claimed, 'That is not how we do business'

 

4) M K Kaw, former civil aviation secretary in the late 1990s has blamed Jet Airways for blocking Tata's entry into aviation in his book "An Outsider everwhere- Revelations by an insider". Kaw has said that the then Civil aviation minister, C M Ibrahim refused to clear Tata-Singapore airlines file as Jet convinced the minister that rules were being changed to show undue favour to the Tata group. 

 

5) Tata Sons teams up with Malaysian discount carrier, AirAsia in early 2013 to setup  a low cost airline along with another domestic investor, Arun Bhatia of Telestra tradeplace pvt ltd. Tata Sons will have a minority 30% stake in the proposed joint venture. Meanwhile, the JV is stuck as BJP leader, Subramanian Swamy has contested the FIPBs clearance to the JV in the Delhi high court. The Delhi HC has asked the Centre to file its reply to the petition.