Tata Sons Chairman N Chandrasekaran on Saturday said Air India, which is undergoing a transformation, is not just a business opportunity but a 'responsibility' for the Tata Group.
The aviation sector faces continous challenges, he said and added that the global supply chain issues make availability of parts, infrastructure and new fleet pretty unpredictable.
"Every plan that you have is becoming difficult because of the situations that you face in this area," he said.
Chandrasekaran also mentioned that the aviation is a very capital intensive business and also the margins are thin.
At an event in the city to celebrate the 121st birth anniversary of J R D Tata, Chandrasekaran said, "I firmly believe for the Tata Group, Air India is just not a business opportunity. It's a responsibility".
Tatas acquired loss-making Air India along with Air India Express in January 2022, and since then, the group has been working on an ambitious five-year transformation plan. However, the progress has been slower than expected due to various factors, including global supply chain woes resulting in aircraft upgradation as well as delivery delays.
Highlighting the potential of the country's aviation sector, Chandrasekaran said every single percentage growth in GDP will give a 2 per cent growth for the domestic aviation sector.
"India grows 8 per cent, the aviation industry grows 16 per cent. And this game will play out, and will be continuing for a long time, at least 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.
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