Not too long ago, Air India was the poster child of neglect and bureaucratic hurdles. And while there’s still some time before it could even consider joining the ranks of some of the best carriers in the world, its new owners are busy nudging it in that direction. But plans for its business expansion aren’t limited to flying passengers and cargo. The future entity could also encompass a training academy and a sizeable ground-handling business.
More than just an airline
The Tata Group’s plans for Air India could go beyond fleet and network expansion as a recent report suggests that a ground handling business and aviation academy could be a part of its future. The Economic Times (ET) reports that the Tata Group could set up an Air India ground handling business to meet the airline’s future needs. The company could be large enough to even offer services to other airlines.
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Air India realizes that to compete with the best in the world, it needs to have a smooth functioning ground service division. Last year, the airline was reportedly unhappy with the sub-par ground handling services provided by Air India Airport Services Limited (AIASL).
When Air India was offered to the Tatas, several of the airline’s subsidiaries remained with Air India Assets Holding Ltd (AIAHL) – a special purpose vehicle set up in 2019 for holding non-core assets and debt of Air India. AIASL was one of them. The Indian government is ready to sell AIASL, and it’s possible that the Tatas could look to acquire it as well.
Air India’s new owners have decided to pump significant capital into its development over the next decade. An official aware of the development told ET,
“That is the way forward discussed within the top management. Airport services and ground handling are also a critical consumer-facing role adding to the overall consumer experience in addition to the one inside the aircraft.”
Aviation academy
One of the teething troubles faced by Air India’s new team is finding the right talent to keep up with its ambitious growth plans. The airline will receive 470 planes over the next several years and needs a qualified pool of pilots, cabin crew, and ground personnel to keep operations smooth.
In the last few months, Air India has faced challenges finding enough qualified pilots to operate some of its widebody planes and is even willing to hire ex-pats to do the job. With hundreds of new aircraft to join its fleet in the coming years, the airline hopes to have enough home-grown pilots, cabin crew, and engineers.
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To do this, there are plans to set up an Air India aviation training academy to rival those considered the best worldwide. Indeed, as the airline spreads its wings under the Tatas, it will need all divisions to be adequately staffed and run efficiently.
