Air India for international, Air India Express for domestic: Tata Sons’ growth strategy

Tata Sons has reportedly asked its airline, Air India, to pursue growth on both international and domestic markets. The airline had merged with Vistara to form a bigger entity.  

According to a report in The Economic Times, the conglomerate wants Air India to pursue growth on international routes to take on foreign carriers, while it wants low-cost airline Air India Express to sharpen its focus on the domestic market to take on rivals like IndiGo. 

The airline’s board met this week to discuss the future plans and align them with Tata Group’s strategic goals in the aviation business. Air India CEO Campbell Wilson stepped down as Air India Express chairman and handed over the reins to Nipun Aggarwal. Basil Kwauk, who was newly appointed as the chief operations officer of Air India, has been inducted to the board. Kwauk was instrumental in expanding Vistara operations.

Tata Sons has also stressed upon the Air India management the achievement of operational breakeven by FY27-end, the report added.

After the merger with Vistara, the plan for the airline is to quickly seize international routes, which are highly profitable. Wilson will be focusing on making Air India globally competitive. Meanwhile, the plan for Air India Express is to push it to quickly catch up with IndiGo. Air India Express has added 45 aircraft so far.

An official told the daily that managing the transformation and meeting expectations of travellers is not an easy task but one that has, nevertheless, led to success in many areas.