Tata Sons-owned Air India was elected to the International Air Transport Association (IATA) Board of Governors at the IATA AGM held in Istanbul earlier this week. Air India’s inclusion to the board after a gap of several years is being considered a big achievement for the Indian aviation industry.
In another big development, IATA also announced that Pieter Elbers, CEO of IndiGo, will serve as Chair of the IATA BoG from June 2024, succeeding Yvonne Manzi Makolo, CEO of Rwandair.
The IATA board now has Indian representation not just from Air India but also IndiGo. Following this, the board will get insights and suggestions from the Indian market perspective. Experts also hailed the development, saying India is one of the
largest aviation markets and thus having representation from Indian airlines is important.
Air India also got elected to the Executive Committee of Star Alliance for the first time.
As per an internal communication seen by CNBC-TV18, Campbell Wilson, MD and CEO of Air told employees, "We should be humbly proud that so soon after privatisation, we are already being looked at in such a light by our peers.
This more active participation at the aviation industry’s highest tables reflects our ambition to help shape its future, and to be one of its leaders. It also reflects the industry’s acknowledgement that this is a new Air India and with our friends at IndiGo also represented on the IATA BOG, a new India."
The IATA BoG exercises an oversight and executive role, including the general management and control of the business, affairs, funds, and property of IATA, on behalf of other member airlines.
As the two domestic airlines make it to the Board, they will be included in determining, reviewing and approving IATA policy and taking action in response to specific requests from member airlines. Both Air India and IndiGo shall have an equal say in existing and future policies, which
India's increasing influence on the global aviation map.
According to experts, the last major representation from India was from Naresh Goyal, the erstwhile promoter of now discontinued Jet Airways.
Lokesh Sharma, Senior Aerospace and Defence expert told CNBC-TV18, "Tata group owned Air India has four airlines under its Umbrella, making it the second largest market player with 25 percent market share. The airline has placed one of the largest aircraft orders in the history of Indian aviation, plus they have been major operators on domestic and international routes. This makes Air India most suitable to join the IATA Board of Governors. Having them in IATA will help in creating large aviation hubs in India."
Jitender Bhargava, former ED of Air India, meanwhile said, the inclusion of Air India and IndiGo is a clear message that the Indian aviation industry has come of age and is on the growth path. “There will be a good representation of Indian view points at IATA," he added.
At present, IATA’s board of Governors’ comprises 31 airlines.
Air India last year joined the Federation of Indian Airlines (FIA) and Association of Asia Pacific Airlines (AAPA).
