 Founded in 1932 by J. R. D. Tata and later renamed as Tata Airlines , he flew its first single @-@ engine De Havilland Puss Moth , carrying air mail from Karachi to Bombay and later continuing to Madras ( currently Chennai ) . After World War II , it became a public limited company and was renamed to Air India . On 21 February 1960 , it included its first Boeing 707 – 420 named Gauri Shankar and became the first Asian airline to induct a jet aircraft in its fleet . In 2000 – 01 , attempts were made to privatize Air India and from 2006 onwards , it suffered losses after its merger with Indian . 
