India is the fifth largest economy in the world and also the fastest growing country. If we look at the last ten years, there have been many changes in our country from 4g and 5g technology to high speed trains like Vande Bharat but in such a fast growing country the desire of a middle class person to fly is still a problem. It remains a dream but is the actual reason for this. US with a population of 33 crores has around 5800 commercial aircrafts while India with a population of 140 crores has only 700 commercial helicopters so here you can understand why a common man cannot board a plane only 58% market share is number one position but after tata company buys Air India in 2022 has done world biggest aircraft deal for purchase of 470 planes in one year dollars is about 6,50,000 lakh crore rupees but the point here is that every year thousands today I am going to tell the master plan implemented by tata company after investing more than six lakh crores in this company and buying so many planes.
For First of all Air India you need to know one thing that although Tata company bought it as a government company in 2022 but Tata company actually established Air India, but see this in 1932 one of Tata sons GRD Tata founded a company called Tata Airlines after World War II in 1946 Tata Airlines was a It became a public limited company and at the same time the name of this company was changed from Tata Airlines to Air India after the independence of India Nehru who was the first Prime Minister of India followed the principle of social district and nationalized Air India which was growing with good profits and merged it with the government. Air India did a very good business in India from 1953 to 1993 but in 1993 the Indian government also allowed private companies into the airline industry which means that anyone can start an airline company in India if they have the money so Air India which could not compete with private companies started going into losses slowly after Air India was merged into Indian Airlines in 2007.
These losses increased so much that even when 2021 comes Air India has debts of more than fifteen thousand three hundred crore rupees tata company bought it for 18000 crore rupees, which means 15300 crore rupees to pay the debts of Air India and the remaining 2700 crore to the government so finally Air India which was established by Tata in 1932 has rejoined the Tata group after about 90 years So the point here is that Presently Air India Company has only 8.4% of the Indian Airlines Industry to give you an idea that out of every 100 people who board a plane in India only eight people travel on Air India at the same time 58 people are traveling in 100 but do you know the reason for this. According to the calculations of 2022 India has total 720 commercial aircraft out of which almost 300 aircraft are with Indigo company. At the same time Air India has only 128 that means if we compare with Air India, Indigo company has there are almost twice as many flights at the same time Air India has only 128 aircraft which means that if compared to Air India Indigo company has almost twice as many flights.
Therefore Indigo company is in the top position in the market share as well whether it is to increase the market share or to make more customers travel in Tata Air India. The first requirement is that airplanes can provide their services to more passengers so if more customers use their services the company will automatically reduce their ticket price and make even a common man board the plane. I think you understand the logic but if you want to understand how this is practically possible look at this strategy implemented by the Tata company presently there are four airline companies in the Tata group away Air India express these four airlines are Low Area and Air India Express are both Low Cost Carriers next Vistara Airlines and Air India Navy are full service carriers but what is the difference between these two is that low cost carriers focus on budget traveling i.e. after you board a flight no food but luxury or premium features except water bottles are not available to you in low cost carriers whatever you want you have to spend extra money and buy some premium features in these full service carriers.
If you compare with the cost carriers, the ticket price of this full service carrier ship card is very high express has been merged in March 2023 and completely converted into one low cost carrier service which means it will directly compete with companies like IndiGo and Air India and Vistara Airlines have been converted into a separate full service carrier. They focus on the most profitable routes for example if the demand is increasing between Hyderabad and Vizag then Tata company will operate their low cost carrier on the same route so in order to increase the demand in India and earn profits Tata company will run their flights on any route so why did the original Tata company buy Air India and we have seen what are the plans but now how is the aviation industry in India and also because of this decision taken by Tata let us see whether a common man can really buy a flight ticket with the money of a train AC ticket in the future or not. In present India every year more than 30 crore people travel in flights according to some status 2014 is going to increase to more than 100 crores and the number of passengers will increase almost 4 times
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