Saturday, October 29, 2016

Cyrus Mistry’s 'letter bomb' may not have blown up Air Asia – but it has caused great turbulence

Sixty years after the Tatas ceded control in Air India, they returned to the aviation space in India via a joint venture with Malaysian low cost airline Air Asia in June 2014, making it the first foreign airline to set up a subsidiary in India. Today, it is the fourth largest carrier in the country with a market share of 2.2%. Tata’s stint with Air Asia has been marked with controversies from day one but Cyrus Mistry’s letter after his ouster from the chairmanship of Tata Sons just put the aviation company in a lot more trouble.

Mistry was unceremoniously replaced by Tata Sons as the chairman of Tata Group on Monday evening in an announcement that shocked Indian businesses, even though the company argued it was done in the longer term interest and stability of the group.

Mistry, however, didn’t go silently into the night and wrote a scathing letter to the board of the company alleging many wrongdoings inside the Tata Group. The controversy is far from over and Tata Group has hit back by claiming that Mistry’s allegations are unsubstantiated and baseless as the two parties gear up for a court battle over his ouster.
28/10/16 Mayank Jain/