TIM CLARK IS KNOWN TO pick his words carefully. The 71-year-old President of Emirates has spent over half a century in the cut-throat aviation industry. Not surprisingly, when he speaks, people stop to listen. In early October, he was asked by an Indian media organisation what the impending sale of Air India would mean to his company. Clark, a Briton by birth, had bluntly said it would affect Emirates, quickly adding: “As times change, you adapt and adjust. But this one is a bit of an outlier. They should have had a national carrier the size of Singapore Airlines, or look at Emirates.”
Less than a week later, on October 8, the decision to sell Air India to the Tata group for ₹18,000 crores (equity plus debt) was announced. (Read the interview of Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management on page 44 for more details.) The deal gave India’s most diversified business house the airline, its low-cost carrier Air India Express, the Air India brand name, and a strong network with over 6,000 slots in domestic and international markets.
With a fleet of 128 aircraft (according to Air India’s website) and another 25 belonging to Air India Express, the buyer would appear to have hit pay dirt. However, juxtapose that against the accumulated losses of close to ₹78,000 crore, debt in excess of ₹61,000 crore and a bloated workforce, and a turnaround looks tough. It’s not as if Clark does not know all this. With a hub in Dubai, Emirates flies to pretty much every part of the world and is known for everything Air India is not— high-quality service, spotlessly clean aircraft and sound financials, among other things. Yet, he is worried.
Bu hikaye Business Today dergisinin November 14, 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today dergisinin November 14, 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS