Tuesday, October 30, 2018

In Jet Airways, N Chandrasekaran sees his vision for Tata's aviation business taking flight

Soon after taking over as the Chairman of Tata Sons, N Chandrasekaran shared his vision for the $100 billion conglomerate. He wanted each of its companies to be 'top performers' in their respective sectors.

The vision also included simplifying the structure of the group. There are the big three  - Tata Consultancy Services, Tata Steel and Tata Motors. The rest will be organised around clusters, which include infrastructure, defence, consumer goods and travel.

Vistara and AirAsia India are the two companies that fall in the travel cluster. The Tatas hold 51 percent in Vistara, its joint venture with Singapore Airlines, and Tata Sons owns 49 percent in AirAsia India.

The two airlines are far from meeting Chandrasekaran's "top performers" vision.

Although Vistara's revenue jumped over 50 percent to Rs 2,228 crore in the 2018 financial year, it still reported a loss of Rs 431 crore. As on September 30, its market share was just 3.8 percent.

AirAsia India, on the other hand, recorded its first profitable three-month period  in the fourth quarter of the last financial year. But it's bottomline returned to red in the first quarter of the current financial year and its market share at the end of September was 4.8 percent.
30/10/18 Prince Mathews Thomas/Moneycontrol.com

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