Thursday, October 18, 2018

What Tata's ambitious Jet-Vistara-Air Asia combo would look like

The reports of Tata Group buying a large stake in the loss-making Jet Airways have set the tongues wagging. The salt-to-software conglomerate is reportedly mulling over buying 26 per cent stake in Jet, and another 26 per cent via open offer at a later point. The stake purchase is expected to make Tata Group the second biggest airline operator in the country after IndiGo in terms of market share, and third-largest in terms of fleet size.

The Tata Group already owns substantial stake in two carriers - 51 per cent in Vistara and 49 per cent in AirAsia India. With Jet under its fold, the Tata Group-owned airlines would have a combined market share of 23.6 per cent as compared to 41.9 per cent for IndiGo, as per August data. The fleet size of Tata Group-owned airlines would be 159, which is lesser than Air India Group's 176 (including Air India Express and Alliance Air) and IndiGo's 172 aircraft.

Surprisingly, the Tata Group-owned airlines would have far higher staff strength (18,774) as compared to IndiGo's 14,604 and Air India Group's 13,518, as mentioned in the DGCA's Handbook on Civil Aviation Statistics 2017/18. In fact, the combined personnel strength of the Tata Group-owned airlines would be over 32 per cent of the staff count of the sector. The higher staff strength also points out to the higher staff-per-aircraft ratio of 118 as compared to its peers - IndiGo's 84.9 and Air India Group's 76.8.
18/10/18 Manu Kaushik/Business Today

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