Trustworthy Airasia gave wings to Tata’s dream

Mumbai, April 28: A good partner and untapped potential in the low-cost sector made the Tata Group re-enter the aviation space although the industry remains tough, and the competition cut-throat, according to a company official.

“If you look at the lowcost carrier space, it is huge and it has not been adequately tapped. So, the opportunity is there,” Tata Group brand custodian and spokesperson Mukund Rajan said, when asked what made the group change its stand on reentering the sector.

There are many people from many cities wanting to travel but are not receiving the services, and it offers immense potential, he said.

The Tata group, which pioneered civil aviation in India, is making a comeback to the sector with Malaysian low-cost carrier AirAsia and Telestra Tradeplace of Arun Bhatia in a 49:30:21 AirAsia India, a no-frills airline.

Last December, Ratan Tata had said that he was unlikely to venture into the airline industry because of “destructive competition” in the sector. The decision to re-enter the market apparently stems from the fact that partner AirAsia, the largest low-cost operator in the continent, has a proven track record.

Mr Rajan said: “It is a great business proposition where we have a partner who has succeeded in other parts of the world....has done extremely well in pretty demanding market environment.”

“It does not take (us) away from the other point that Ratan Tata has made... Broadly speaking, aviation is a tough industry and there are lots of people who have lost (money).” — PTI