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Case Tudy On Air India
Case Tudy On Air India
CASE STUDY
ON
AIR INDIA
OF
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CASE TUDY ON AIR INDIA
Air India Limited (Hindi: ) is the national flag carrier airline of India,
flying a worldwide network of passenger and cargo services. Air India is state-owned,
and administered as part of the National Aviation Company of India Limited - which
was created in 2007 to facilitate Air India's merger with Indian Airlines.[3] The main
bases of operation of the airline are Mumbai's Chhatrapati Shivaji International
Airport and Delhi's Indira Gandhi International Airport.
Air India is the 16th largest airline in Asia, [4] serving 25 destinations worldwide, and,
with its affiliated carriers, serves over 100 cities. Air India has codeshare agreements
with twelve other international airlines.[5] In 2010, Air India is expected to join Star
Alliance, the world's largest airline alliance.[6][7]
Air India was founded by J. R. D. Tata in 1932 as Tata Airlines, a division of Tata
Sons Ltd. (now Tata Group). On 15 October 1932, J. R. D. Tata flew a single-engined
De Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from
Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The
aircraft continued to Madras via Bellary piloted by former Royal Air Force pilot
Nevill Vintcent.
Following the end of World War II, regular commercial service was restored in India
and Tata Airlines became a public limited company on 29 July 1946 under the name
Air India. In 1948, after the Independence of India, 49% of the airline was acquired
by the Government of India, with an option to purchase an additional 2%. In return,
the airline was granted status to operate international services from India as the
designated flag carrier under the name Air India International. On 8 June 1948, a
Lockheed Constellation L-749A named Malabar Princess and registered VT-CQP
took off from Bombay bound for London via Cairo and Geneva. This marked the
airline's first long-haul international flight, soon followed by service in 1950 to
Nairobi via Aden.
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CASE TUDY ON AIR INDIA
airline took delivery of its first L-1049 Super Constellations and inaugurated services
to Bangkok, Hong Kong, Tokyo and Singapore.
Air India International entered the jet age in 1960 when its first Boeing 707-420,
named Nandadevi and registered VT-DJJ, was delivered. Jet services to New York
City via London were inaugurated that same year on 14th May 1960. On 8 June 1962,
the airline's name was officially truncated to Air India. On 11 June 1962, Air India
became the world's first all-jet airline.
In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-
400 named Konark and registered VT-ESM made history by operating the first non-
stop flight between New York City and Delhi. In 1994 the airline was registered as Air
India Ltd. In 1996, the airline inaugurated service to its second US gateway at O'Hare
International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-
C at the newly renamed Chhatrapati Shivaji International Airport in Mumbai.
In 2000, Air India introduced services to Shanghai, as well as to Los Angeles and
Newark. On May 2004, Air India launched a wholly-owned low cost airline called Air
India Express. Air India Express connecting cities in India with the Middle East,
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CASE TUDY ON AIR INDIA
Southeast Asia and the Subcontinent. Air India expanded its international routes to
include non-stop flights from Ahmedabad and also expanded its international
operations from Bangalore and Hyderabad.
On 8 March 2004, International Women's Day, the airline operated an "All Women
Flight" from Mumbai to Singapore.[8] Captain Rashmi Miranda, who became Air-
India's first female Commander in November 2003 and Captain Kshmata Bajpai
piloted the flight, an Airbus A310-300 aircraft. The flight dispatch activities relating
to this flight were also coordinated by a female Flight Dispatcher, Vasanti Kolnad.
The Safety Audit on board was also conducted by another woman, Harpreet D Singh.
The airline has seventeen female pilots, including five trainee pilots.
In 2007, the Government announced that Air India would be merged with Indian
Airlines. As part of the merger process, a new company called the National Aviation
Company of India Limited (or NACIL) was established, into which both Air India
(along with Air India Express) and Indian Airlines (along with Alliance Air) have
been merged.[9] Once the merger is complete, the airline - which will continue to be
called Air India - will continue to be headquartered in Mumbai. It will be India's
largest airline after the merger, with 100 aircraft,along with 59 orders and 89
destinations(including 50 domestic destinations and 39 international routes)excluding
its and Indian Airlines' subsidiaries.
Star Alliance announced on 13 December 2007 that it had invited Air India to join as a
member.[10][11] Air India is set to become a full Star Alliance member in 2010.
India has the world's fastest growing airline industry. [12] However, increasing fuel
prices resulted in a 4% decline in air traffic in June 2008. [13] Increasing competition of
other major Indian carriers like Jet Airways and Kingfisher Airlines has pushed Air
India to third place in India in terms of market share. In July 2008, it was reported that
Air India was seeking US$534 million in aid from the Indian government to cover its
losses.[14] In the wake of rising fuel prices, the airline decided to hike its air fare in
June 2008.[15]
Air India plans to open up new/resume routes to Africa (Dar es Salaam, Mauritius,
Johannesburg, Lagos), Asia (Beijing, Taipei), Europe (Birmingham, Geneva/Zrich,
Moscow, Rome/Milan), North America (Boston, Dallas/Houston, San Francisco,
Vancouver, Washington, D.C.) and Oceania (Melbourne, Sydney)[16][17][18][19].
On 1 March 2009 Air India made Frankfurt Airport its European Hub for its North
American Operations.
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CASE TUDY ON AIR INDIA
Financial Crisis
Around 2006-07, the airlines began showing signs of financial distress. The combined
losses for Air India and Indian Airlines in 2006-07 was Rs 771 crores. After the
merger of the airlines, this went up to Rs 7200 crores by March 2009.[20] This was
followed by restructuring plans which are still in progress.[21]. In July 2009, SBI
Capital Markets Ltd was appointed to prepare a road map for the recovery of the
airline.
Air India's current livery was unveiled in May 2007.[31] It is a cross between Air
India's old predominately red and white livery and Indian Airlines's livery. The new
livery was first seen in July 2007 on a new Boeing 777-200LR when Air India and
Indian Airlines formally became one airline. The fleets of both airlines will be painted
in the new livery.
The logo of the combined airline is a Flying Swan with the Konark Chakra placed
inside it. The Flying Swan has been adapted from Air Indias characteristic logo, The
Centaur whereas the Konark Chakra is reminiscent of the Indian Airlines logo. The
logo is featured on the tail of the aircraft and the Konark Chakra is on the engines.
Colours are red for Flying Swan and orange for Konark Chakra".
While the base colour for the new livery is ivory, Air India's characteristic red has
been retained. Running parallel to each other are orange and red speed lines from the
front door to the rear door. The brand name Air India runs across the tail of the
aircraft.
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CASE TUDY ON AIR INDIA
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CASE TUDY ON AIR INDIA
Company Location
Cathay Pacific Lantau, Hong Kong
Jet Airways Mumbai, India
Singapore Airlines , Singapore
Kingfisher USA
Jetair way Mumbai
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CASE TUDY ON AIR INDIA
MARKETING INITIATIVES:
Air India has devised new promotional packages for First and Executive
Class passengers who can look forward to all expenses paid holiday
package
for two to destination in India and Abroad. The scheme provides for air
tickets, hotel
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CASE TUDY ON AIR INDIA
ABOUT CASE OF AIRINDIA
A committee of secretaries (CoS) headed by Cabinet secretary KM Chandrasekhar considered Air Indias
proposal on Saturday to inject capital and provide soft loan, a person close to the development said.
The government would support the airline in meeting its short- and medium-term capital requirements.
The CoS has agreed to increase the equity base of the company and take it above Rs 5,000 crore over the
next three years, the official said. He also said the government would help the airline in getting loan
from banks if required. The airline is comfortable with what the committee has proposed. The airlines
cost-cutting exercise so far undertaken was not satisfactory. They need to do a lot more, another
government official said on condition of anonymity. Hit by the worst financial crisis in its history, Air
India had earlier sought over Rs 15,000 crore from the government to tide over the crisis. Air India had an
accumulated loss of over Rs 7,200 crore as on March 2009.
The high-level committee has, however, made it clear that the financial help would be linked with the
money saved by the airline. Air India expects to cut its operational cost by about Rs 2,000 crore per
annum besides enhancing its cash flow by 10-15%. The airline aims at saving about Rs 750 crore by
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CASE TUDY ON AIR INDIA
rationalising productivity-linked incentives of its 31,000 staff. It has targeted to reduce its cost by Rs 500
crore by rationalising its network. On the revenue enhancement front, Air India has decided to unlock the
value of its real estate properties. It will also expand its customer base. The airline is all set to launch its
low-cost airline Air India Express on domestic routes.
Accenture has given a cost-cutting plan. It has said that the company would save over Rs 4,000 crore
annually by cutting cost and enhancing revenue. The company chief has asked all concerned functional
directors to act and produce desired results, a senior Air India official said on the condition of
anonymity.
He said the cost-cutting measures suggested by Accenture have been presented to the CoS. Air India had
submitted a turnaround plan, prepared by merchant banking firm SBI Caps, to the panel last month.
Loan liabilities of Air India currently stands at nearly Rs 16,000 crore. The company owes about Rs 600
crore to Airports Authority of India (AAI) over and above the dues of private airport operators such as
Delhi International Airport (DIAL) and Mumbai International Airport (MIAL).
The company has to make principal and interest repayment of about Rs 9,000 crore over the next three
years, mainly on account of fleet acquisition, an official said. Meanwhile, the CoS has directed the
ministry of civil aviation to move a proposal to the Cabinet in consultation with finance ministry for the
financial assistance to beleaguered carrier
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