
Air India's troubles under the Tata Group as crash creates its biggest crisis
June 13 (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)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
an hour ago
- Reuters
Reliance Industries sells part of stake in Asian Paints
June 16 (Reuters) - Billionare Mukesh Ambani-led Reliance Industries ( opens new tab on Monday sold shares worth 18.76 billion rupees ($218.32 million) in Asian Paints through a bulk deal, exchange data showed. ($1 = 85.9290 Indian rupees)


Reuters
an hour ago
- Reuters
Rupee ends nearly flat following choppy trading; forward premiums dip
MUMBAI, June 16 (Reuters) - The Indian rupee experienced choppy trading before ending nearly flat on Monday as a broad based decline in the U.S. dollar blunted risk aversion spurred by the escalation in the Iran-Israel conflict. The rupee closed at 86.0650 against the U.S. dollar, nearly unchanged from its close of 86.08 in the previous session. The South Asian currency hovered in a 85.9525-86.23 range on the day with traders pointing to exporter hedging, oil prices and broad-based dollar weakness among the cues that impacted its trajectory. While "traders were biased towards buying dips (on USD/INR), the price action was somewhat confusing, leading to cutting of speculative positions," a trader at a state-run bank said. Meanwhile, the dollar-rupee forward premiums eased. The 1-year implied yield was down 5 basis points at 1.83%, weighed by an uptick in near-tenor U.S. Treasury yields and exporter hedging. The dollar index was down 0.3% at 97.9 and Asian currencies were trading mixed. The offshore Chinese yuan rose 0.1% while the Thai baht declined by about 0.3%. Investors are keeping a close eye on signs that the ongoing Iran-Israel conflict may escalate into a broader regional conflict. "All eyes are now on the trio driving market sentiment— war, trade wars, and central bank moves," said Amit Pabari, managing director at FX advisory firm CR Forex. Pabari expects the rupee to remain volatile in the near-term and reckons that an intensification of hostilities in the Middle East could push the currency towards 86.50-86.80. Meanwhile, India's merchandise trade deficit (INTRD=ECI), opens new tab narrowed to $21.88 billion in May, according to government data released on Monday. India and the U.S. aim to sign an interim trade deal before July 9, an Indian trade ministry official said on Monday.


Reuters
2 hours ago
- Reuters
India's unemployment rate rises to 5.6% in May as farm jobs decline post-harvest
NEW DELHI, June 16 (Reuters) - India's unemployment rate rose to 5.6% in May from 5.1% in April, partly due to a drop in farm activity after the end of the harvest season, the statistics ministry said on Monday. This was the second monthly release of India's labour force data covering both urban and rural areas. Previously, the government published employment data on a quarterly basis for urban regions and annually for both urban and rural areas. Asia's third largest economy, which expanded 7.4% year-on-year in the January-March quarter, is expected to grow 6.5% in the current fiscal year beginning April - broadly in line with the previous year's pace. The female unemployment rate stood slightly higher at 5.8% in May, compared to 5.6% for males, the data showed. Unemployment rate among urban youth aged 15 to 29 years rose to 17.9% in May from 17.2% in April, while in rural areas, the youth jobless rate increased to 13.7% from 12.3% over the same period. In rural regions, employment shifted away from agriculture to manufacturing and services as the share of workers in the farm sector fell to 43.5% in May from 45.9% in April, largely due to a post-harvest decline in agricultural activity. The decline in farm activity also impacted work opportunities for women in rural areas, with the labour force participation rate among women falling to 27.8% in May from 28.8% in April, the data showed. India's manufacturing growth slowed to a three-month low in May as demand softened amid price pressures and geopolitical tensions, a survey showed earlier this month.