Air India faces growth challenges as Ratan Tata’s death highlights legacy issues

Air India’s ambitious expansion plans are expected to be on track even as the death of Tata Group’s family patriarch Ratan Tata, the driving force behind the conglomerate’s bet on aviation, has turned attention to the flag carrier’s legacy issues and growth challenges, analysts say.

The airline, which was founded as Tata Airlines in 1932, reportedly ordered a fleet of Airbus jets even as the Tata conglomerate mourned the death of its former chairman. Ratan Tata, who died at the age of 86 on Wednesday, was also the former chairman of Tata Sons, the parent company of Tata Group.

According to a Reuters report on Thursday, Air India has placed a new order for 85 Airbus jets. Airbus said late on Wednesday that an unnamed customer had placed an order for 75 A320 family jets and 10 long-haul A350s in a deal worth US$6.3 billion, according to data from Cirium Ascend, an aviation consultancy.

Air India is yet to comment on the reported deal.

Last year, Air India placed an order for 470 aircraft from Airbus and Boeing, with the combined deals estimated to be worth US$70 billion, local media reported.