'Tatas have right than anybody to be in airline business'

Amid concerns expressed over control at its two airline ventures, the Tata group today said it does not need certificate from anybody on whether the conglomerate has the right to be in the aviation business.
"If anybody has the right to be in aviation it is Tata (group). We can easily claim that 75 years back when we were just going (with airline business), we got nationalised. How fair is that?," a senior Tata group official said.
Old players under the banner of Federation of Indian Airlines (FIA) have raised concerns over ownership and control at AirAsia India and Vistara -- the two startup carriers where Tata group has substantial stakes.

FIA -- comprising Jet Airways, SpiceJet, IndiGo and GoAir -- have also opposed any relaxations in the 5/20 overseas flying norm, which Vistara and AirAsia India have been seeking.
Under the rule, only carriers with at least five years of operational experience and a minimum of 20 planes can fly overseas. This makes Vistara and AirAsia India ineligible to operate international flights.
"... Tatas were pioneers of aviation. We do not need a certificate from anybody to tell us whether we have a right to belong here or not," the official said.

In budget airline AirAsia India, a joint venture with Malaysia's AirAsia, Tata Sons would be hiking its shareholding to 49 per cent from the current nearly over 41 per cent.

Tata Sons also holds 51 per cent stake in full service carrier Vistara with the remaining 49 per cent being owned by Singapore Airlines.
Noting that the two airlines are doing well, the official said, "I suspect this is a reason that you are seeing distracting comments from competitors. We have arrived. Hopefully we go from strength to strength."
Further, the official said that the group was always clear about the fact that it would take a minimum of 3-4 years to make profit in the airline business.
"Besides, that is also a function of the number of aircraft. The more aircraft you bring in the faster you can scale up. We were always clear that it is a long gestation business," he noted.

"It is the principle which brings the power. In Vistara we get the benefit of Singapore Airlines and in AirAsia it is that of AirAsia," the official said.
In an apparent reference related to ownership and 5/20 norm, the official said, "for people who say look at the recent past and this is all unfair, we could also then say look at the distant past it is even more unfair".