AIR INDIA

CASE STUDY
Yellow Team
S T O RY O F A I R I N D I A
1. In 1932 Tata Airline was formed
2. In 1953 This was taken over by the Government as part of 2
nationalization
3. In 2007 Merged with Indian Airlines
4. In 2021 Air India was acquired by Tata (Talace Pvt Ltd)
5. In 2024 plans to merge with Vistara.​
MERGER 1: WITH INDIAN AIRLINES

Reason for Failure Reason for Air India

Downfall (2017)
1. Instability at top
1. Slow decision making 3
2. Higher employee count
2. Raising fuel costs
3. Diff in work culture 3. Competition with Pvt sector
4. High operational cost 4. Failed merger with Indian airline

5. Continued losses 5. Higher employee count (30000 whereas

need was 12000)
6. Unplanned purchase of
6. Debt of INR 50,000 Cr
111 aircrafts
Need for Privatisation

Pitched by Spice Jet & Tata

M E R G E R 2 : A I R I N D I A & TATA
(INR 18000 CR)

Benefits Challenges

1. Synergies due to presence in 1. Debt of INR 38,000 crores

4
aviation sector
2. No. of existing employees
2. Using old aircrafts for carrier 3. Old machineries of Air
service India
3. Market growth due to this 4. Business continuity clause
merger for 3 years

4. Economies of scale 5. Timing due to Airline

issues in COVID19
5. Merge within Tata airline sector
(Vistara, Air Asia)
THANK YOU
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