Go big or bow out: Tata at crossroads as airline biz reaches critical point

India has been trying unsuccessfully to sell its unprofitable national airline for years

Ratan Tata is no stranger to flying. As a 17-year-old, the octogenarian patriarch of India’s biggest conglomerate once landed a plane that had lost its sole engine mid-flight; he’s also piloted the supersonic F-16 fighter jet.

That love of aviation hasn’t always translated into business success, however. Tata Group’s two airlines -- AirAsia India and Vistara -- were struggling before the coronavirus pandemic. Covid-19 has put the sprawling Tata Sons Ltd., which owns a 51% stake in each, at a crossroads. Either go big, by buying state-run Air India Ltd. for example, or bow out before spilling more red ink.