Ratan Tata piloted Tata Group's aviation ambitions 

Tata Sons chairman emeritus Ratan Naval Tata who passed away on Wednesday night piloted the group's aviation sector ambitions.

While Tata group purchased Air India from the government in 2022, the launch of AirAsia India in June 2014 marked the group's foray into the airline business a second time. Previously the group ran (and continues to run) an in-flight catering and an air charter business.

Tata, a keen enthusiast of automobiles and planes, teamed up with Tony Fernandes, the maverick CEO of Malaysia-based AirAsia to launch a joint venture airline.

In an earlier interaction with Forbes magazine, Fernandes recalled that initially he wanted to partner with Tata group to manufacture cars. While that idea never got off the ground, changes in regulations on foreign ownership in Indian airlines allowed two sides to collaborate on a joint venture. Tata flew down to Singapore and the two met in Shangri La hotel to discuss formation of the airline which took off in June 2014.

Seven months later another Tata group airline, Vistara, took to skies.

Tata's passion with aviation and the group's long standing connection with Singapore paved the way for its launch. In 2008 Ratan Tata was conferred honorary citizen award by the Singapore government, the city- state's highest form of recognition for non-Singaporeans.

"He was a special man whose enormous achievements were dwarfed by his humility and unfailing courtesy. A true gentleman in the fullest sense of the word. A dear friend of Singapore. Farewell, " Singapore's foreign minister Vivian Balakrishnan said in a social media post.

"He ( Ratan Tata ) played a pivotal role in setting up our Vistara joint venture over a decade ago, laying the foundation for a strong and enduring relationship between Tata Sons and Singapore Airlines. Vistara quickly established itself as India’s most-loved full-service airline, " Singapore Airlines CEO Goh Choon Phong said in a statement.

While the AirAsia India venture ran into problems and Tata eventually acquired full ownership from its Malaysian partner, relations between Tata and Singapore Airlines have been cordial.

In 2022 the Tata group completed the acquisition of Air India that was sold by the government in a disinvestment exercise. It was a homecoming for the airline which JRD Tata founded in 1932. “Welcome back, Air India,” Tata had posted in a social media post after winning the bid in October 2021.

“While admittedly it will take considerable effort to rebuild Air India it will provide a very strong market opportunity to the Tata group’s presence in the aviation industry,” Tata had said. 

Currently Vistara and Air India managements are working on a merger of the two airlines that is set for completion on November 12. AirAsia India's integration with Air India Express was completed last month.

With the integration Air India becomes the second largest domestic airline and largest airline on international routes on a market share basis. While it now has a wider reach, the group’s aviation business remains loss making. AirAsia India and Vistara failed to make profit since inception. On a positive side, losses of the four group airlines reduced by around 60 per cent to Rs 6337 crore in FY 2024.  

• Also read: Vistara experience will remain post merger, says Air India

With the integration, Air India becomes the second largest domestic airline and largest airline on international routes on a market share basis. 

Tata also spearheaded the group's aerospace and defence sector ventures. Tata served as independent director on the board of Hindustan Aeronautics Limited in mid-2000s and the experience may have come useful while setting up Tata Advanced Systems Limited (TASL) which was incorporated in 2007. Two years later the company tied up with Sikorsky Aircraft for manufacturing of S-92 helicopter cabins. The first cabin was delivered in 2011 from the TASL plant in Hyderabad.

More such collaborations have happened over the years with Lockheed Martin, Airbus and Boeing for co-production of aircraft components. Prime Minister Narendra Modi and his Spanish counterpart Pedro Sanchez are likely to inaugurate the final assembly line for Airbus C-295 aircraft in Vadodara on October 28. Tatas and Airbus have also teamed up to produce H125 helicopters in India.

• Also read: Lockheed Martin, Tata Advanced Systems join hands for Super Hercules aircraft production

Also last month TASL became the first Indian company to set up a defence production plant overseas when it announced a plant to make armoured vehicles in Morocco.

"Heartbroken by the loss of Shri @RNTata2000 Ji, whose visionary leadership not only transformed India’s industry but also played a pivotal role in shaping our aviation sector," civil aviation minister Ram Mohan Naidu Kinjarapu said in a social media post.

Tributes also flowed in from industry leaders and business partners.

“The Tata Group has long been a cornerstone of India’s identity on the global stage and has been an integral part of the nation’s growth story. Mr. Tata exemplified integrity, innovation, and compassion, guiding the Tata Group to unprecedented heights while upholding the highest standards of corporate responsibility,” Boeing South Asia president Salil Gupte said.

“Mr Tata’s passion for aviation is well known. We will fondly remember hosting him in Toulouse and discussing his love for flying and aviation in general. His zeal and vision for the revival of Air India as a part of the Tata family will continue to inspire,” Airbus South Asia president Remi Maillard wrote in a LinkedIn post.