Former Temasek Holdings chief executive Ho Ching has reflected on the history of Air India and its links to the development of Singapore Airlines (SIA), highlighting how the Indian carrier once served as an example for the Singapore flag carrier.
In a Facebook post, Ho traced Air India’s history back to Tata Air Services, founded by the Tata Group in 1932. She said the airline developed a reputation for premium service under JRD Tata, who was closely involved in maintaining its standards.
According to Ho, JRD Tata was known for being highly demanding about service quality and was personally willing to inspect facilities and address shortcomings.
Air India was once regarded as a premium carrier
Ho said Tata Air Services subsequently expanded its ambitions beyond India’s domestic market.
The airline adopted the Maharaja mascot in the late 1940s, which became closely associated with Air India’s identity and its emphasis on premium service.
In 1948, Tata Air Services was renamed Air India as the company prepared to expand its international operations. Around the same period, the Indian government acquired a minority stake in the airline.
Ho argued that the arrangement initially allowed the Tata Group to retain significant control over the carrier, with JRD Tata continuing to serve as its chairman.
However, she said the situation changed following India’s independence, as policymakers began considering the country’s airlines to be strategic national assets.
In 1953, the Indian government nationalised the country’s privately owned airlines. Air India was subsequently brought under state ownership, while the domestic operations were reorganised under Indian Airlines.
Ho described the move as a major turning point for Air India, saying JRD Tata had strongly opposed the restructuring and believed it could eventually damage the airline.
Despite the change in ownership, she said Air India continued to be regarded as a benchmark for international airline service for a period.
SIA eventually sought to surpass its former benchmark
Ho also drew a connection between Air India’s reputation and the development of Singapore Airlines.
She noted that when Singapore Airlines emerged from Malaysia-Singapore Airlines, Air India was among the airlines regarded as a model for premium service.
Over time, however, Ho said SIA developed its own reputation and eventually surpassed many of the standards associated with its earlier role model.
She argued that this reflected Singapore’s broader approach to operating in highly competitive industries, where local companies are expected to compete against international businesses rather than relying on government protection.
Ho also discussed the later deterioration of Air India’s service standards and finances following years of government ownership.
According to her account, Ratan Tata, who succeeded JRD Tata as a leading figure within the Tata Group, remained particularly interested in restoring Air India to its former status.
Ratan Tata was himself a pilot and had a longstanding interest in aviation. Ho said several attempts were made over the years to return Air India to private ownership, although these efforts were unsuccessful for a considerable period.
Tata Group eventually returned to Air India
The Tata Group ultimately regained control of Air India decades after the airline had been nationalised.
Ho’s post focused particularly on the possibility of SIA becoming a partner to Air India, describing Singapore Airlines as a former student that had eventually overtaken its teacher.
She said Ratan Tata had developed close ties with Singapore during his career and was interested in having SIA play a role in Air India’s revival.
Airlines, however, operate in an unusually difficult environment, Ho noted, because the industry is heavily regulated and closely connected to national economic and political interests.
Governments around the world may protect their own carriers or provide various forms of support, while foreign airlines can face restrictions when attempting to expand their presence in particular markets.
Singapore’s aviation model relies on competition
Ho contrasted this with Singapore’s approach to aviation.
She argued that Singapore Airlines has had to compete without relying on direct government handouts, forcing it to continuously improve its products and services.
Singapore’s aviation market is also relatively open compared with many countries, she said, with foreign airlines playing a significant role in the local market.
Ho likened this approach to Singapore’s banking sector, where local financial institutions compete directly with major international banks.
Her broader argument was that Singapore’s relatively open economy forces domestic companies to compete against some of the world’s strongest businesses.
For SIA, that has meant maintaining high service standards while adapting to changing customer expectations, rising operating costs and intense international competition.
Ho’s comments come as Air India undergoes another major transformation under Tata Group ownership, while SIA continues to position itself as one of the world’s leading full-service airlines.
The contrasting histories of the two carriers illustrate how ownership, government policy and competitive pressure can have a significant influence on the fortunes of national airlines over several decades.