TCS CEO strikes nostalgic note on Air India, says will contribute to revive it to past glory

Image of JRD Tata tweeted by Ratan Tata

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26 Aug, 2025 12:21

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For TCS employees, Tata group winning the Air India bid, is nostalgic given that it was the first airline most of them took for international travel, the software major's CEO Rajesh Gopinathan said. He added that it will contribute in any possible way it can to revive the airline to its past glory.

The Tata group won the Air India bid for Rs 18,000 crore on October 8. It is  sort of like a homecoming moment for the salt-to-software conglomerate, which founded Air India, but gave control to the government 68 years ago.

TCS and Air India

Speaking to media persons on Friday after the company's Q2 FY22 results, Gopinathan said, "Air India is the most nostalgic airline for most TCSers. Almost all of us took our first international trip on Air India. We used to go with the return ticket and that used to be our safety guard that if all else fails we just have to get to the Air India office somewhere and we will get back home.”

“We will try to do our best to contribute in whichever form we will try to revive it to the glory that it had, as one of the best airlines in the world. So we are looking forward to participating in all forms,” he said, during the earnings call on October 8.

This move could have significant implications for the software major, which accounts for about 90 percent of the group’s income and hence might have to do the heavy lifting. “Given the multiple headwinds post the energy crisis, falling metal prices, the China crisis which may impact Tata Motors, and rising input costs among others, the contribution from other companies in the group may dwindle. TCS will have to feed the group with growth capital – both organic and inorganic,” a Moneycontrol Pro article said.

However, it might not be all bad. On the other hand, this can result in higher payment for shareholders, the article said.

In response to Moneycontrol’s query about higher dividends for TCS shareholders, Gopinathan said, “As far as financials goes, dividends is the decision of the board and they will take the decision. I don’t think individual investments at the group level have ever been a factor for these decisions.”

But this does present a business opportunity. Gopinathan explained that with the aviation sector recovering, the environment looks optimistic and presents opportunities for growth, as the industry invests and leverages technologies.

“We have seen this kind of resilience in the customer segment over the last two years. Airlines have shown remarkable capability to ride through the crisis and in many cases, their expected return to normalcy has come forward by 12-18 months. Even six months back they were talking about a 24 months kind of time frame,” Gopinathan said.

The airlines, Gopinathan said, are using this opportunity to change customer experience, streamline operations and invest in technology that could deliver that experience. “TCS has been participating strongly in that space and it is a very encouraging sign of how a crisis can trigger change that can benefit for decades,” he added.

TCS does not declare revenue separately for its aviation business. But it is covered under the retail and consumer business, which accounts for about 15 percent of the company’s revenue.

In its FY21 annual report, the company said that its Travel, Transportation & Hospitality was badly impacted by pandemic restrictions. “Key investment themes include contactless operations and self-service, operating model changes, and simplification,” the company said.

Tata group and Air India

The only other competitor for the airline was SpiceJet chairman Ajay Singh, who was the only other bidder in the fray. Singh bid in his personal capacity and his bid was around Rs 15,100 crore.

Ratan N Tata in a statement said, “While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group’s presence in aviation.

“On an emotional note, Air India, under the leadership of JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tata will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr JRD Tata would have been overjoyed if he was in our midst today.”

N Chandrasekaran, Chairman, Tata Sons, said, “At the Tata group, we are delighted to be declared as the winner of the bid for Air India. This is a historic moment, and it will be a rare privilege for our group to own and operate the company’s flag bearer airline.”