The past two months have seen the founder and chief executive of the low-cost airline battle intense regulatory scrutiny and suspension of senior executives. While a smart management move has brought some peace, the airline’s troubles are far from over.
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Days after Vistara’s merger with Air India, the country’s largest airline is hoping to wean away some of the full-service carrier’s customers. The risk? Complicating its own business model.
Indian aviation is replete with failed attempts at integrating cultures of merged entities. Given the fissures and concerns in both airlines, have the Tatas done enough to buck the trend?
Chairman N. Chandrasekaran may have ensured a 500 million pound grant for the Port Talbot facility’s transition, but given the risks and money involved, the exercise will test the Indian parent’s patience with the loss-making business.