Mumbai: The Tata Group has asked its group companies to fly state carrier Air India, a business that was earlier with Naresh Goyal-promoted Jet Airways.
The decision came after a recent meeting between Air India representatives and a Tata Group team where the state carrier offered better rates to the salt-to-steel conglomerate.
A Tata spokesperson confirmed the development. "A Tata team that engaged with Air India was able to arrive at a good rate and all group companies have been advised to choose that rate. It will definitely be a saving [for the group]," the spokesperson said, but did not specify the amount the conglomerate would save.
Industry estimates suggest almost 35 per cent of Jet's corporate travel business comes from the Tatas and the company will definitely feel the pinch of this business going away. Jet Airways , which last year sold a stake to Abu Dhabi-based Etihad Airways, did not respond to queries for four days.
31/01/14 Manisha Singhal/Business Today
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The decision came after a recent meeting between Air India representatives and a Tata Group team where the state carrier offered better rates to the salt-to-steel conglomerate.
A Tata spokesperson confirmed the development. "A Tata team that engaged with Air India was able to arrive at a good rate and all group companies have been advised to choose that rate. It will definitely be a saving [for the group]," the spokesperson said, but did not specify the amount the conglomerate would save.
Industry estimates suggest almost 35 per cent of Jet's corporate travel business comes from the Tatas and the company will definitely feel the pinch of this business going away. Jet Airways , which last year sold a stake to Abu Dhabi-based Etihad Airways, did not respond to queries for four days.
31/01/14 Manisha Singhal/Business Today
