By acquiring Air India, Tata has invited plenty of challenges. The Think Tank out there, would surely have considered ways to untangle all aspects of business to make the airline fly high, for long.
Since I am no match to the battery of consultants on the project, I will restrict myself to touch on a very basic issue that has the potency to make a lasting impact. Branding.
In the airline business, Tata will have 4 brands under its wings.
Air India
Air India Express
Air Asia
Vistara
Which ones should it go with? Retain all 4? Or stay put with just 1 or 2 or 3? Pick any and it will have its merits and weak links. My take:
They should have 2 brands:
1. Air India. Full service airline. Vistara would need to repaint its tail.
2. New Brand. Low Cost airline. Air India Express and Air Asia to be done with.
Air India and Brand X should be at the two extremes of the spectrum. Two independent profit centres.
Your take?