MUMBAI: Tata Sons Chairman N Chandrasekaran Saturday said Air India, which is undergoing a transformation, is not just a business opportunity but a “responsibility” for Tata Group. In his keynote address at an event here to celebrate the 121st birth anniversary of Tata Group founder JRD Tata, Chandrasekaran said when the group bought Air India in 2022, he was asked why it was entering the aviation sector. “But I firmly believe for Tata Group, Air India is not just a business opportunity. It’s a responsibility,” he said.“Every single percentage growth in GDP will give a 2% growth in the domestic aviation sector. (If) India grows 8%, the aviation industry grows 16%. And this game will play out… at least for the next three decades. So, this is going to be a very exciting phase of economic growth, and for the aviation sector in particular,” he said, adding, “But it’s not easy. It’s increasingly difficult because the sector faces continuous challenges.” He said the global supply chain makes the availability of parts, infrastructure and new aircraft unpredictable.Chandrasekaran also mentioned that aviation is a very capital-intensive business and the industry margins are thin. Noting that India is already the fourth largest economy, and becoming the third largest economy, he said the 8.2% GDP growth in the July-Sept quarter was “just fabulous.” And India will grow at 7% at least, this fiscal year, he added.According to him, there is increasing consumer confidence and consumption-led growth, and public infrastructure spending will additionally drive growth. “So, we will become a $5 trillion economy, and we will grow beyond that. We will do it faster, and the pace at which we add every additional trillion dollar will be shorter, and we will create exciting opportunities. But if this has to happen, one of the aspects that needs to work is connectivity,” he said.He said there are several aspects of the industry that one has to manage. “Geopolitics is a surprise. Suddenly, your flight routes will change, because you cannot fly over a territory. Your flights take longer, your fuel costs go up… We have to manage all of this,” he said.Chandrasekaran said demand for air travel is very high, and the aspirations of Indians are growing as everybody wants to be connected andtravel. “So I think our commitment is to build a world-class airline,” he further said.
