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The last straw to save <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword> seemed to have drowned. In a major blow to <keyword id="222693" type="COMPANY" weightage="20" keywordseo="The-National">the national</keyword> carrier’s reviving plans, <keyword id="6355725" type="CITY" weightage="20" keywordseo="Tata-Group">Tata Group</keyword>, which was supposed to <keyword id="47916" type="UNKNOWN" weightage="20" keywordseo="invest">invest</keyword> in Air India has backed out . 
 "That was 14 years ago (when Tatas were keen on buying back AI.) Not now," <keyword id="1878231" type="UNKNOWN" weightage="20" keywordseo="Tata-Sons-Singapore-Airlines">Tata Sons-Singapore Airlines</keyword> (SIA) <keyword id="2688288" type="UNKNOWN" weightage="20" keywordseo="JV-Vistara">JV Vistara</keyword> <keyword id="6364480" type="POSITION" weightage="20" keywordseo="Chairman">chairman</keyword> <keyword id="159032" type="PERSON" weightage="20" keywordseo="Prasad-Menon">Prasad Menon</keyword> told <keyword id="105279" type="CITY" weightage="20" keywordseo="the-Times">The Times</keyword> of India. 
 "SIA always says they learnt from AI (of JRD Tata era). We can learn from AI and SIA both (for Vistara)," he added. Menon, who has been asking the government to make it easier for new airlines to fly abroad so that <keyword id="1446" type="CITY" weightage="20" keywordseo="indian-airlines">Indian airlines</keyword> can get their rightful share of international traffic to and from India from foreign airlines. Tatas are now in both the full service space with Vistara and low-cost segment with AirAsia India. 
 
The Tatas and SIA had tied up in 2000 when the then BJP government had decided to divest 40% stake in Air India. A year later, SIA had walked out of that partnership due to an "adverse climate" and intense opposition to the privatization of AI. 
 AI was founded by JRD Tata in 1932 as <keyword id="150145" type="COMPANY" weightage="20" keywordseo="Tata-Airlines">Tata Airlines</keyword>. The airline was later taken over by the government and has over the years fallen from its glory days under JRD's leadership. 
 
As per a news report in The Economic Times, the current NDA government is also struggling with AI and has so far not been able to find any radical solution to revive the airline. It has not even been able to find a chairman for the airline. The current CMD's three-year-term ended last August and he has been given an extension for a year till a replacement is found. 
 
(Image: Reuters)

​Tatas refuse to lend a helping hand to Air India

<keyword id="454315" type="UNKNOWN" weightage="100" keywordseo="Indian-domestic-airlines">Indian domestic airlines</keyword> want passengers to stay away from travel agents, and in order to do so, are offering attractive additional incentives on booking tickets via their own websites. 
 
Mumbai-based Jet Airways, which India's second biggest airline by market share, is talking to cab aggregator Uber so that the two companies can club their services offered to mutual passengers. As per <a href="http://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/domestic-airlines-sites-offering-extra-benefits-to-passengers-to-wean-them-away-from-travel-agents/articleshow/53309506.cms">ET</a> reports, if the talks go as desired,<a href="http://www.businessinsider.in/Jet-Airways-posts-first-annual-profit-after-8-years/articleshow/52462018.cms"> Jet Airways </a>will be able to advance-book an Uber cab pickup and drop from and to the origin and destination airports. The customers would probably benefit by getting luxury car services at the rate of hatchbacks. 
 
Similarly, Gurgaon-based budget carrier <a href="http://www.businessinsider.in/Spicejet-launches-pre-paid-card-scheme-for-frequent-fliers/articleshow/51701305.cms">SpiceJet </a>is in talks with MyTaxiIndia, and is also offering special discounts for students and senior citizens when tickets are booked from its website. 
 
<a href="http://www.businessinsider.in/Vistara-announces-Holi-discounts-you-can-book-your-flights-starting-at-Rs-999/articleshow/51511271.cms">Vistara</a>, on the other hand, which is a JV between Singapore Airlines and <a href="http://www.businessinsider.in/Tatas-are-going-to-benefit-the-most-from-Indias-100-per-cent-FDI-in-civil-aviation-decision-Heres-how/articleshow/52879844.cms">Tata Sons</a>, is offering stay at <a href="http://www.businessinsider.in/Taj-group-of-hotels-plans-customer-loyalty-programmes-with-international-hotels/articleshow/52570154.cms">Taj Hotels Resorts &amp; Palaces </a>to passengers booking tickets from its website. 
 
The reason why airlines want passengers to book from their websites is that when travel agents are involved, it involves commissions and other charges, which are avoided in direct bookings through websites. 
 
<a href="http://www.ainonline.com/sites/default/files/uploads/2013/06/jet_airways.jpg">Image source</a>

Domestic airlines don't want you to go to travel agents, and here's why you should listen to them

<ul><li>Tata Sons owns 51% of the stake in the six-year-old joint venture, and AirAsia owns 49%.</li><li>Reports suggest that Tata Sons may buy the remaining stake from the Malaysian parent company. </li><li>Air Asia announced its biggest quarterly loss in August and said it plans to raise $600 million through debt and equity as the pandemic affected its revenue</li><li> In FY20, the JV posted a loss of ₹317 crore in the first quarter. </li></ul>Tata Sons is reportedly gearing up to acquire the rest of the 49% stake of the joint venture between Tata Sons and Malaysia’s AirAsia, as the latter struggles to continue operations in India, according to a <a href="http://timesofindia.indiatimes.com/articleshow/78482682.cms">TOI report</a>. In the six-year-old joint venture, Tata Sons owns 51% of the stake, and the remaining 49% is held by AirAsia. Tata’s will have the first right of refusal for the minority stake owned by AirAsia. “AirAsia, because of its financial difficulties, is not keen on infusing capital into the India JV. It wants the JV to take on debt to run the operations. Tata Sons is forced to consider buying out AirAsia,” a source told TOI. This came after Air Asia announced its biggest quarterly loss in August and said it plans to raise $600 million through debt and equity as the pandemic affected its revenue— the company also added that it is evaluating some of its operations outside Malaysia. AirAsia ceased Japan operations and has hinted towards Indian operations The parent company AirAsia also ceased its Japan operations, citing “highly challenging operating conditions in Japan which have been aggravated by the COVID-19 pandemic.” AirAsia India has been hinting at a shutdown in Indian operations for a while now. In June, AirAsia’s founder and CEO T<a href="https://www.thehindubusinessline.com/economy/logistics/airasia-indias-co-owner-may-just-be-running-out-of-patience-cash/article31892620.ece">ony Fernandes said</a> India is a peripheral market and that the company could exit one day. The company has been unprofitable since its launch in 2014. In FY20 results, Tata Sons said that the pandemic completely eroded the AirAsia India net worth and its auditor raised the red flag about the JV’s ability to continue. The Tata Group also invested nearly ₹490 crore in AirAsia India in FY20, while the JV posted a loss of ₹317 crore in the same period. Yesterday, the Union Aviation Minister Hardeep Singh Puri’s comment made headlines on social media, where he <a href="https://www.livemint.com/companies/news/airasia-s-problems-grow-as-hardeep-singh-puri-hints-at-local-shutdown-11601878412278.html">claimed:</a> “AirAsia’s shop is anyway shutting down." The aviation minister added that “their parent company has problems." The Tata Group also owns a 51% stake in Vistara Airlines in Partnership with Singapore Airlines. And, the Tata SIA JV in its FY20 results, reported a net loss of ₹1,814 crore. Tatas are also <a href="https://www.business-standard.com/article/companies/tatas-likely-to-take-call-on-cash-strapped-air-india-bid-this-week-120030300036_1.html">reportedly </a>looking to bid for the government-owned cash strapped Air India. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/checkout-upcoming-new-cars-in-october-2020-in-india-mg-gloster-audi-q2-land-rover-defender-in-list/slidelist/78489874.cms" data-type="tilCustomLink">Relief for passengers who cancelled air tickets during the lockdown — Supreme Court accepts DGCA recommendations</a> <a href="https://www.businessinsider.in/business/ecommerce/news/jiomart-gets-ready-for-its-festive-sale-debut-amidst-tough-competition-from-amazon-and-flipkart/articleshow/78492158.cms" data-type="tilCustomLink">JioMart gets ready for its festive sale debut amidst tough competition from Amazon and Flipkart</a>

Tata Sons may bid for rest of the 49% stake in AirAsia India

The clash between <keyword id="6360722" type="UNKNOWN" weightage="20" keywordseo="ratan-tata">Ratan Tata</keyword>’s pride and <keyword id="6356895" type="ORGANIZATION" weightage="20" keywordseo="cyrus-mistry">Cyrus Mistry</keyword>’s passion led to the latter’s ouster from Tata Sons in 2016. Today, he has won the battle at the National Company Law Appellate Tribunal (NCLAT) but the battle is far from over. But at the time of infamous exit in 2016, Mistry made some startling allegations. He blamed the board for the group’s ballooning debt and expensive mistakes. In <a href="https://www.businessinsider.in/full-text-of-cyrus-mistrys-email-to-tata-board/articleshow/55090303.cms">his open letter</a>, Mistry said that he was being forced to pay the price for trying to make things right⁠— moving to a low-debt and a high-profit regime. 
 <div type="image" title="mistry car" msid="72873174" hostid="261"></div>



 After the NCLAT order today, Mistry called it a victory for “good governance and minority shareholder rights.” However, Tata Sons is likely to appeal at the Supreme Court, which will then have the final say on whether Mistry can actually return as the Executive Chairman of the conglomerate that has listed companies whose market value is over $100 billion. In the three years of Mistry’s exile, some of his warnings have come true The first and foremost was <keyword id="6354362" type="COMPANY" weightage="20" keywordseo="Jaguar-Land-Rover">Jaguar Land Rover</keyword> acquisition where he said that it would result in $10 billion of impairments. And his prediction came true earlier this year when Tata Motors took a $3.9 billion non-cash asset impairment – which is basically an acknowledgement of loss of value. The next in line was the massive hole that Docomo’s telecom venture would leave them with. While Mistry wanted to fight a battle against the Japanese telecom major, the “hangers-on”, as Mistry called some of his older peers on the Board, wanted to pay up and settle the dispute. Mistry had predicted that the cost of exiting the business would be $4-5 billion and years after Mistry left the job, the group is known to have written a $6 billion cheque for the blatant error of starting a price war in the telecom sector. Mistry also hit hard on Ratan Tata’s <a href="https://www.businessinsider.com/tata-nano-failure-2011-12">passion project, Nano</a> ⁠— “the ₹1 lakh car” 
 <div type="image" title="rata nano" msid="72873186" hostid="261"></div>



 As per the letter he wrote the board, the cost of making the Nano were always above the sale price. “As there is no line of sight to profitability of Nano, any turnaround strategy for the company requires it to shut it down. Emotional reasons alone have kept us away from this crucial decision,” lamented an irate Mistry. Now, the car will be manufactured on an order basis, said a report <a href="https://www.drivespark.com/four-wheelers/2018/tata-nano-production-stopped-manufactured-on-order-basis-026010.html">by an auto website</a>. However, Mistry’s biggest grouse was the group’s investment in aviation, particularly Air Asia. “My pushback was hard but futile. However, I was able to extract a promise of no debt to be raised at the level of JV as well as limiting Tata Sons investment to 30% of the $30 million equity,” he said in his letter. But eventually he was ‘made’ to execute a deal where Tata Sons would take 51% stake in $100 million venture wherein Tatas ended up investing in two airlines –AirAsia and Vistara. Consequences unfolded, and in 2018-19, <keyword id="6358246" type="COMPANY" weightage="20" keywordseo="AirAsia">AirAsia</keyword>’s losses widened by four times from last year to ₹671 crore. Making matters worse, a forensic audit revealed a fraud to the tune of ₹22 crore which were made to non-existent parties but they were never studied further as the impact was ‘non-material’, according to the Board. Once again, Mistry could stand and go “I told you so.” If Mistry prevails at the top court, it could do irreparable damage to Ratan Tata, a hallowed corporate leader in India for decades. He accused Ratan Tata of shadow control to the extent that one of the board members would take a break from crucial decision making to make a phone call to him ⁠— which Mistry said violated the rules of insider trading. However, Tata Sons released a statement saying that they will pursue appropriate legal recourse. “It is not clear as to how the NCLAT Order seeks to over-rule the decisions taken by shareholders of Tata Sons and listed Tata operating companies at validly constituted shareholder meetings. The NCLAT order appears to even go beyond the specific reliefs sought by the Appellant,” said Shuva Mandal, group general counsel at Tata Sons. Therefore, Tata Sons is likely to give up on its fight against Mistry any time soon. Expect more dramatic turns in one of the biggest battles in the history of corporate India. Here’s a timeline of the legal battle between Cyrus Mistry and Tata Sons over the last three years. 
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 SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/cyrus-mistry-can-return-as-tata-sons-chairman-three-years-after-he-was-thrown-out-by-ratan-tata/articleshow/72868406.cms">Cyrus Mistry can return as Tata Sons Chairman three years after he was thrown out by Ratan Tata</a> <a href="https://www.businessinsider.in/business/corporates/news/cyrus-mistry-still-has-to-prove-the-charges-against-ratan-tata-and-tata-sons-board/articleshow/72868673.cms">First Cut: The legal implications of Mistry's victory in the case against Tata Sons</a>

You Searched For "JV Vistara" and got 4 results

Tatas refuse to lend a helping hand to Air India

BI India Bureau

Domestic airlines don't want you to go to travel agents, and here's why you should listen to them

BI India Bureau

Tata Sons may bid for rest of the 49% stake in AirAsia India

Navdeep Yadav

Cyrus Mistry was proven right on at least four of his warnings to the Tata Sons Board even before the latest court ruling

Katya Naidu

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You Searched For "JV Vistara" and got 4 results

​Tatas refuse to lend a helping hand to Air India

BI India Bureau

Domestic airlines don't want you to go to travel agents, and here's why you should listen to them

BI India Bureau

Tata Sons may bid for rest of the 49% stake in AirAsia India

Navdeep Yadav

Cyrus Mistry was proven right on at least four of his warnings to the Tata Sons Board even before the latest court ruling

Katya Naidu

Popular Keywords

Buying Guides

Tatas refuse to lend a helping hand to Air India