Market Update: Tata Sons Appoints Former Aviation Secretary As Air India Faces Regulatory Hurdles | Economy News – Full Analysis

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Tata Sons has appointed former civil aviation secretary Pradeep Singh Kharola as an advisor to its aviation business

Air India (Image: Reuters/File)

Air India (Image: Reuters/File)

Tata Sons has appointed former civil aviation secretary Pradeep Singh Kharola as an advisor to its aviation business, according to a report by The Economic Times (ET), as the group steps up efforts to stabilise and transform Air India.

A 1985-batch IAS officer, Kharola is expected to play a key role in strengthening the airline’s engagement with the government at a time when Air India is facing intense regulatory scrutiny and leadership churn. He served as civil aviation secretary from February 2019 to September 2021 and oversaw the privatisation process that culminated in the Tata Group’s acquisition of Air India in January 2022. He also briefly served as the airline’s chairman. Kharola is yet to comment on queries regarding his new role.

His induction comes amid heightened oversight of Air India following last year’s fatal crash of a Boeing 787 aircraft that claimed 260 lives. A preliminary probe did not attribute the accident to any fault in the aircraft or the airline’s engineering practices.

Regulatory pressure has remained elevated. Over the past two years, the Directorate General of Civil Aviation (DGCA) has issued 84 show-cause notices to Air India and 65 to its low-cost arm, Air India Express, according to data tabled in Parliament. In comparison, IndiGo — which operates a fleet nearly twice the size — received 98 notices.

Last week, the DGCA fined Air India for operating an aircraft eight times without a valid airworthiness permit and also held CEO Campbell Wilson accountable, stating that the lapse had undermined public confidence in aviation safety.

Sources cited by ET said Kharola was personally chosen by Tata Sons chairman N. Chandrasekaran and has been closely involved in the airline’s functioning since the crash, particularly in government engagement and safety reviews.

People familiar with the matter told ET that there have been concerns within the Tata Group’s leadership about gaps in communication with the government, with some senior officials preferring to engage directly with top group executives.

Aviation remains a tightly regulated sector, with airlines dependent on multiple government approvals for operational and strategic decisions. For instance, Air India is seeking permission to use Chinese airspace to offset higher costs arising from restrictions on Indian carriers flying over Pakistani airspace.

Rival IndiGo has also hired former bureaucrats, including R K Singh, a former joint secretary in the civil aviation ministry, who now heads corporate affairs at the airline.

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