Air India's troubles under the Tata Group as crash creates its biggest crisis
(Reuters) -The Air India plane crash that led to the death of over 240 passengers on Thursday has plunged the airline into its biggest crisis yet and will pose a significant challenge to its efforts to revamp its reputation and fleet.
The following is a timeline of the airline's troubles since its takeover by the Tata Group in January 2022.
- January 2022: Auto-to-steel conglomerate Tata Group takes control of state-run carrier Air India in January 2022, in a $2.2 billion deal, ending years of struggle to privatise the financially troubled airline.
The Tata Group wants to recapture Air India's lost glory and compete with Gulf carriers, like Emirates, that capture the lion's share of west-bound Indian travellers. - January 2023: Air India faces criticism and around a $35,000 fine from the country's aviation regulator for its handling of an unruly passenger on a flight from New York in November 2022, and in December on a flight from Paris to Delhi. The regulator says the airline did not follow industry standards in its handling of the passengers.
- June 2023: An Air India plane flying from Delhi to San Francisco is forced to divert and land at an airport in Russia's Far East after it develops a technical issue with one of its engines.
A similar incident on the same route occurs in July 2024 due to a potential issue in the cargo hold area.
- March 2024: India's air safety watchdog fines the Tata Group-owned airline 8 million rupees (nearly $93,000) for violating flight duty time limitations and fatigue management systems of its flight crew.
Air India did not provide adequate weekly rest, adequate rest before and after ultra-long flights or adequate rest on layovers for flight crew, violating revised rules, the Directorate General of Civil Aviation (DGCA) said.
- March 2025: Air India's $400 million overhaul of its legacy aircraft's interiors has been dogged by supply chain issues that have delayed its aim of being a world class airline by months.
The first such upgraded jet enters service in March 2025, later than the mid-2024 target Air India had set when it announced the overhaul.
- May 2025: Air India says it expects to face around $600 million in additional costs if a ban from Pakistan's airspace lasts for a year, and asks the federal government to compensate it for the hit. Indian airlines braced for higher fuel costs and longer journey times after Pakistan shut its airspace to Indian carriers in a tit-for-tat retaliation following an attack on tourists in Kashmir.
($1 = 86.0950 Indian rupees)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
an hour ago
- New York Times
Air India's New Owners Were Trying to Revamp Carrier Before Crash
This week's horrifying plane crash in Ahmedabad, India, happened at a critical juncture in the history of Air India, one of the world's oldest airlines and the country's flagship. In 2022, India privatized the carrier after almost 70 years of state control. The government had tried for years to find someone to take Air India off its hands. It finally sold it to the Tata Group, India's most prestigious conglomerate, for the relatively low price of $350 million. The idea was that the private sector would do better. Air India's reputation was on a steady decline, with a fleet notorious for late takeoffs, broken seats and spotty service. It was a feat for the government of Prime Minister Narendra Modi to find any buyer at all. The new owners have poured a lot of money into turning things around. The Tata Group hired Campbell Wilson, a New Zealander who started a low-cost carrier in Singapore, to reform management from the top. To renew the fleet, Air India placed record-breaking orders for 570 new aircraft, a mix of planes by Boeing and its European rival, Airbus. With investigations into the cause of the crash on Thursday just getting underway, it was unclear whether Air India itself will face any blame. The death toll, 261 passengers and staff as well as dozens on the ground, made the crash one of the world's worst in years. The type of airplane involved, a Boeing 787 Dreamliner, had been flying safely around the world for years, and the pilot had logged more than 8,000 flight hours. Want all of The Times? Subscribe.
Yahoo
2 hours ago
- Yahoo
Vietnam parliament approves hiking tax on alcoholic drinks to 90% by 2031
HANOI (Reuters) -Vietnam's National Assembly on Saturday approved a proposal to raise the special consumption tax on alcoholic beverages to 90% by 2031 from the current 65%, a move that will add to challenges facing the industry even though the top rate won't be as high as first flagged. Under the legislation, the tax rate on beer and strong liquor will rise to 70% by 2027, a year later than initially proposed, before reaching 90% in 2031. Vietnam currently imposes a 65% tax on these products and the initial proposal last year had the tax rising to as high as 100%. The finance ministry has said the aim of the higher taxes is to curb alcohol consumption. Vietnam is Southeast Asia's second-largest beer market, according to a report by consultancy KPMG in 2024. Vietnam's beer industry, led by Dutch brewer Heineken, Denmark's Carlsberg, and local brewers Sabeco and Habeco, has already faced challenges from stringent drink-driving laws introduced in 2019, which set a zero-alcohol limit for drivers. The country's Beer and Alcoholic Beverage Association chief has said industry revenue has declined for the past three years. In response to weakening demand and the initial proposal for the tax hike, Heineken last year suspended operations at one of its Vietnam breweries. On Saturday, the lawmakers also approved a new levy of eight percent on sugary drinks exceeding 5g/100ml of sugar that will take effect in 2027 and rise to 10% in 2028.
Yahoo
3 hours ago
- Yahoo
Longtime spokesperson Tom Bodett sues Motel 6
The Brief Tom Bodett filed a federal lawsuit against Motel 6, claiming the chain used his voice and name without authorization after their contract ended. The dispute stems from a missed $1.2 million payment and the breakdown of a nearly 40-year partnership between Bodett and the motel brand. Motel 6's parent company, G6 Hospitality, said it was surprised by the lawsuit but expressed appreciation for Bodett's contributions. Tom Bodett, whose warm baritone and iconic line "we'll leave the light on for you" made him the voice of Motel 6 for nearly four decades, is suing the motel chain and its parent company for alleged unauthorized use of his name and voice. According to a lawsuit filed Monday in Manhattan federal court, Bodett said he ended his relationship with Motel 6 after its new owner, India-based travel firm OYO, failed to make a $1.2 million annual payment due on Jan. 7. Their contract was set to expire in November. The backstory Despite the contract lapse, Bodett claims Motel 6 continued using his voice and name on its national reservation phone line. The lawsuit alleges violations of both his contract rights and federal trademark law. Bodett said he attempted to reach a confidential settlement that would honor his legacy and protect Motel 6's reputation and franchisees, but accused the company of responding with "misrepresentations, obfuscations, and delay tactics." The lawsuit seeks $1.2 million in owed compensation, along with additional damages and a share of profits. What they're saying A spokesperson for G6 Hospitality, the parent company of Motel 6, said the company was "surprised" by Bodett's lawsuit but indicated it hoped for an amicable resolution. "We appreciate Mr. Bodett's contributions over the past years," the spokesperson said. "Of course, we will continue to advertise keeping the lights on for you." Bodett, when contacted by email, told Reuters: "The complaint says all there is to say." Tom Bodett became Motel 6's lead spokesman in 1986 and said he coined the phrase "we'll leave the light on for you" during an unscripted ad-lib. His voice became synonymous with the brand's down-to-earth identity and was featured in both radio and TV campaigns for decades. In addition to his advertising work, Bodett is known for his appearances on National Public Radio and for narrating several Ken Burns documentaries. What's next The lawsuit, Bodett et al v G6 Hospitality LLC et al, was filed in the U.S. District Court for the Southern District of New York. It could set a notable precedent for voice usage and contract rights in long-term brand relationships, especially as companies change ownership. The Source This report is based on original reporting from Reuters, which first detailed the lawsuit filed by Tom Bodett against Motel 6 and its parent company G6 Hospitality. The article includes direct quotes from legal filings and statements provided to Reuters by both Bodett and Motel 6.
