Tata Group in 2021: Pursuing Profits through Purpose

October 8, 2021: Tata Sons won a bid to acquire India’s national carrier Air India, marking the airline's return to its original owners after 68 long years. The winning bid of $2.4 billion gave Tata Sons full ownership of the airline and its coveted network of 6,200 landing and parking slots in Indian airports and 900 slots in overseas hubs. This bid marked the end of a two-decade-long journey for the Indian government that had been trying to sell the troubled airline which, according to recent estimates, was losing nearly $3 million per day. The chairman of Tata Sons, Natarajan Chandrasekaran (Chandra), described the occasion as a “historic moment.” “It will be a rare privilege for our group to own and operate the country’s flag bearer airline. It will be our endeavor to build a world-class airline that makes every Indian proud.” The acquisition of a heavily indebted and loss-making public sector asset raised several questions: Why did Tata Sons acquire Air India? Was it an emotional decision to regain control of an airline they had started? Was this an example of Tata Sons helping India overcome another persistent challenge, a trait well documented throughout its corporate history? Was it a commercially sound decision?