Devastating tragedy threatens operators’ ambitious turnaround

A few days after the devastating Air India crash in 171 Kill at least 270 peopleinvestigators from around the world are staring at the exact question. So far, there is no indication of where the fault is located, and it may take several months to get the answer.

But as the game is waiting for the start, the Tata Group owns the airline along with other iconic brands such as Jaguar Land Rover and Tetley Tea, facing a series of unprecedented challenges, a critical moment for the airline’s ambitious turnaround.

In the director of this tragic, Air India has just begun to change this narrative.

In the hands of a new private owner – Tatas purchased the airline from the government in 2022 – Air India showed operating profits, better revenue and fewer customer complaints.

Although dissatisfaction with service standard deviation, internal entertainment and flight delay dysfunction has not completely disappeared, there is an understanding that these issues are transitional issues for trivia when airlines take on multiple competitions. Complex mergers Simplify its operation.

From the appearance, the improvements are also beginning to show. On some aircraft, some of the fleet deployed on major routes, new painted and remodeled interiors on the brand new A-350, and new aircraft retired old aircraft and serving India’s booming aviation market.

Years after Air India was neglected by state ownership, Tatas said earlier this year that they embarked on the “final climb phrase” of the operator’s transformation journey to become a “world-class” airline.

Last week’s horror collapse now casts a shadow on these plans.

“I will never take Air India again” was heard among people who were plagued by panic and fear last week. Experts say that while Air India, especially the dream suitors it flies, has a strong safety record, this knee response is expected when a collapse of this scale occurs. Losing passenger confidence can undermine the turnaround efforts already underway.

A series of other reported incidents this month – including engines that develop suspicious technical obstacles and a scam threat on a plane carrying 156 passengers from Phuket to Delhi – could worsen.

“There will certainly be a short-term impact, and people may be alert to the flying air in India. This disaster is very tragic, many lives have been killed, and this activity will remain in people’s memories for a long time,” said Jitendra Bhargava, executive director of the airline.

Shukor Yusof, founder and analyst at Malaysia-based Endau Analytics (Analytics), told the BBC.

“Air India is a very difficult standard-bearer to turn around, first of all, getting stuck due to legacy and financial problems. It takes a stop as they struggle to cope with the consequences of the tragedy, which (turnover) may take more time than management expected.”

Mr Yusof said a large amount of resources must now be redirected to deal with non-operating issues in crashes, such as insurance, legal and reputational losses in the coming weeks, months and even years.

Similarities to unprecedented Twin Tragedy He said Malaysia Airlines suffered losses in 2014, and he said it took the airline a full decade to make a profit after these crashes.

He said Air India also needs time to “heal” and the advantage of the excellent growth of Indian air travel may now be attributed to competitors”.

The operating pressure has begun to be displayed. Air India said it will cancel international services for its wide-body aircraft by 15% due to enhanced security inspections and increased airspace restrictions.

Meanwhile, the investigation – and its potential throws – will continue to hang on the airline.

Aviation expert Mark Martin said the airline will face global scrutiny in various security checks and regulatory aspects that the UK authorities, the US and India are responsible for investigating.

“There will be raised concerning operational and aircraft maintenance issues and what Air India has done to fix its old fleet,” he said.

Mitu Samar Jha said the most critical step after any crisis is to resume action and consistent communication around it, and his company provides risk and reputation advice to companies and company leaders in Mumbai. Air India will need to make sure it doesn’t get it wrong.

In a sense, it was a triple blow for Tatas because of Boeing’s ongoing troubles and their own standards of maintenance and safety, she said, having worked hard on their inherited fleet after they obtained Air India from the government.

“Investigations to identify causes, corrective measures and enhance safety standards will be followed soon, but from a reputational point of view, I want them to communicate consistently and too real.”

She added that generally, companies focus on post-action crises, but “failed to regularly have a larger world about progress in the world. This leads to the formation of incorrect views and loss of control over narratives, which exacerbates reputational losses”.

But Air India hopes it can lead to this crisis from its position of strength.

The carrier’s CEO Campbell Wilson highlighted the airline’s commitment to working with investigators and supporting the victim’s families.

Tata Group Chairman N Chandrasekaran held a town hall meeting earlier this week, and employees asked them to remain firm in any criticism, Reuters reported. He said last week’s plane crash was the “most saddest” crisis of his career and the airline should use it as a catalyst for building safer airlines.

The airline told the BBC that the airline has some of the world’s “best pilots and engineers” Sanjay Lazar. also, Enhanced safety inspections The Indian regulator’s order to all operators’ 787 fantasy parallels should be a concern for passengers’ morale booster.

“History shows that accidents and emergencies, airlines have become very cautious, and this is a trend for humanity. It’s like a homeowner after theft.

Tatas may also be comforted by owning Singapore Airlines (SIA) as shareholders and partners – widely considered one of the best airlines in the world.

Mr Yusof said the SIA could help “help Indian nurses recover their health”.

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