INDUSTRIAL EXPOSURE PROJECT

On

“AIR INDIA”
SubmittedinPartialFulfillmentoftherequirementsfortheAwardo
fDegreeofBachelorofBusinessAdministration(BBA)

2016-2019

Submitted by: VIJAY

Under

theguidanceof:MR. Shakti Sharma

1
 BHARATI VIDYAPEETHUNIVERSITY
SCHOOL OF DISTANCE EDUCATION,
Academic Study Center – BVIMR, NewDelhi
(AConstituentUnitofBharatiVidyapeethUnive
rsity,Pune)AnISO9001:2000CertifiedInstitute

NAAC Re-Accreditation Grade “A”University

ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives us immense pleasure to prepare

this project report on marketing strategy of “AIR INDIA” We would like to thank
our project guide MR. SHAKTI SHARMA, for consultative help and
constructive suggestions on the matter on this project. We would like to thanks our
parents and colleagues who have helped us in making this project a successful one.

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 DECLARATION

This is to certify that I have completed a Project titled "To Study the Marketing
Strategy of “AIR INDIA” under the guidance of MR. SHAKTI SHARMA in the
partial fulfillment of the requirement for the award of Bachelors of Business
Administration of BharatiVidyapeeth University, New Delhi. This is an original
piece of work & I have not submitted it earlier elsewhere.

3
VIJAY

CONTENTS
CHAPTER 1:- Introduction to Company
1.1:- Nature of Business/History
1.2:- Type & Ownership pattern
1.3:-Organisational structure
1.4:-Production Layout
1.5:-Organizational Policies
CHAPTER 2:- Industrial Analysis
2.1:- Industrial Overview
2.2:- Current Issues
2.3:- Key Competitors
2.4:- Environmental Scanning (PESTEL analysis)
2.5:-Porter’s Five Forces Model of Competition
CHAPTER 3:- Marketing Strategy
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 3.1:- Products of the company
3.2:- 4'Ps
3.3:- STP (Segmenting Targeting and Positioning)
3.4:- Distribution Channels
3.5:- Promotion Strategy
CHAPTER 4:- Financial Analysis
4.1:- Sources of Finances
4.2:- Ratio Analysis (Any 3)
4.3:-Net Profit or Net Balance Sheet
CHAPTER 5:- Key learning from the company and Recommendations
5.1:- Performance Analysis of the company [Minimum 4-5 lines]
5.2:- Reasons for the diversificationof the company
5.3:- Comment on Organizational Leadership
5.4:- Market Share / Growth Rate of the company
5.5:- SWOT Analysis of the company
CHAPTER 6:- Finding
CHAPTER 7:- Conclusion

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6
1.1 Nature of Business/History:-
Air India is the flag carrierairline of India.[8] It is owned by Air India Limited, a government-
owned enterprise, and operates a fleet of Airbus and Boeingaircraft serving 90 domestic and
international destinations. The airline has its hub at Indira Gandhi International Airport, New
Delhi, alongside several focus cities across India. Air India is the largest international carrier out
of India with an 18.6% market share.[9] Over 60 international destinations are served by Air India
across four continents. Additionally, the carrier is the third largest domestic airline in India in
terms of passengers carried (after IndiGo and Jet Airways) with a market share of 13.5% as of
July 2017.[10]The airline became the 27th member of Star Alliance on 11 July 2014.

The airline was founded by J. R. D. Tata as Tata Airlines in 1932; Tata himself flew its first
single-engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay's Juhu
aerodrome and later continuing to Madras(currently Chennai). After World War II, it became

7
a public limited company and was renamed as Air India. On 21 February 1960, it took delivery
of its first Boeing 707 named Gauri Shankar and became the first Asian airline to induct a jet
aircraft in its fleet.[11] In 2000–01, attempts were made to privatise Air India and from 2006
onwards, it suffered losses after its merger with Indian Airlines.

Air India also operates flights to domestic and Asian destinations through its
subsidiaries Alliance Air and Air India Express. Air India's mascot is the Maharajah (Emperor)
and the logo consists of a flying swan with the wheel of Konark inside it.

History

Early years (1932–1945)

As Tata Air Services

Tata Air Service

Vintage photograph of an Air India plane

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Tata Sons' Airline Timetable Image, Summer 1935

Air India had its origin as Tata Air Services later renamed to Tata Airlines [12] founded by J. R.
D. Tata of Tata Sons, an Indian aviator and business tycoon.[13]In April 1932, Tata won a contract
to carry mail for Imperial Airwaysand the aviation department of Tata Sons was formed with two
single-engine de Havilland Puss Moths. On 15 October 1932, Tata flew a Puss Moth carrying air
mailfrom Karachi to Bombay(currently Mumbai) and the aircraft continued
to Madras(currently Chennai) piloted by NevillVintcent, a former Royal Air Force pilot and
friend of Tata.[14]The airline fleet consisted of a Puss Moth aircraft and a de Havilland Leopard
Moth.[15][16]Initial service included weekly airmail service between Karachi and Madras
via Ahmedabad and Bombay. In its first year of operation, the airline flew 160,000 miles
(260,000 km), carrying 155 passengers and 9.72 tonnes (10.71 tons) of mail and made a profit
of ₹60,000 (US$920).[17][18]

As Tata Airlines

The airline launched its first domestic flight from Bombay to Trivandrumwith a six-seater Miles
Merlin.[19] In 1938, it was re-christened as Tata Air Services and later as Tata Airlines. Colombo
in Ceylon (now Sri Lanka) and Delhi were added to the destinations in 1938. [14] During the
Second World War, the airline helped the Royal Air Force with troop movements, shipping of
supplies, rescue of refugees and maintenance of aircraft.[14]

Post-independence (1947–2000)

As Air India

Air India became the first Asian carrier to induct a jet aircraft, with the Boeing 707–420 Gauri
Shankar

After 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.[3] After Indian
independence in 1947, 49% of the airline was acquired by the Government of India in 1948.
[20]
On 8 June 1948, a Lockheed Constellation L-749A named Malabar Princess (registered VT-
CQP) took off from Bombay bound for London Heathrow marking the airline's first international
flight.[14]

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Nationalisation

In 1953, the Government of India passed the Air Corporations Act and purchased a majority
stake in the carrier from Tata Sons though its founder J. R. D. Tata[21][22] would continue as
Chairman till 1977. The company was renamed as Air India International Limited and the
domestic services were transferred to Indian Airlines as a part of a restructuring.[23]From 1948 to
1950, the airline introduced services to Nairobi in Kenya and to major European destinations
Rome, Paris and Düsseldorf.[24] The airline took delivery of its first Lockheed Constellation L-
1049 and inaugurated services to Bangkok, Hong Kong, Tokyo and Singapore.[24]

All-jet fleet

On 21 February 1960, Air India International inducted its first Boeing 707–420, thereby
becoming the first Asian airline to enter the Jet Age.[25][26]The airline inaugurated services to New
York on 14 May 1960.[24] On 8 June 1962, the airline's name was officially truncated to Air
India[3] and on 11 June 1962, Air India became the world's first all-jet airline. Air India was also
a launch customer for Boeings newly developed long range jet Boeing 747. In 1971, the airline
took delivery of its first Boeing 747-200Bnamed Emperor Ashoka (registered VT-EBD)[27] and
introduced a new Palace in the Sky livery and branding. In 1986, Air India took delivery of its
first Airbus A310-300.[24] In 1993, Air India took delivery of a Boeing 747-
400 named Konark (registered VT-ESM) and operated the first non-stop flight between New
York and Delhi.[28]

Post-liberalisation (since 2000)

Air India Airbus A310-300. It sold three A300s in March 2009 due to debts

10
In January 2013, Air India cleared some of its debts by selling and leasing back the newly
acquired Boeing 787 Dreamliners. Also, the airline posted its first positive EBITDA after almost
six years

Air India joined the Star Alliance in 2014. Pictured is Air India Boeing 787 Dreamliner (VT-
ANU) in special Star Alliance livery.

In 2000–01, attempts were made to re-privatize Air India. [29][30][31][32] In 2000, Air India introduced
services to Shanghai, China. On 23 May 2001, the Ministry of Civil Aviationcharged Michael
Mascarenhas, the then-managing director, with corruption. According to the ministry reports, the
airline lost approximately ₹570 million(US$8.7 million) because of extra commissions that
Mascarenhas sanctioned and he was later suspended from the airline. [33] In May 2004, Air India
launched a wholly owned low cost subsidiarycalled Air-India Expressconnecting cities in India
with the Middle East and Southeast Asia. Until 2007, Air India mainly operated on international
long-haul routes while Indian Airlines operated on domestic and international short-haul routes.

Indian Airlines merger

In 2007, Air India and Indian Airlines were merged under Air India Limited[34] and the airline
took delivery of its first Boeing 777 aircraft.[24] The airline was invited to be a part of the Star
Alliance in 2007.[35]

The combined losses for Air India and Indian Airlines in 2006–07 were ₹7.7
billion (US$120 million) and after the merger, it went up to ₹72 billion(US$1.1 billion) by
March 2009.[36][37] In July 2009, State Bank of Indiawas appointed to prepare a road map for the
recovery of the airline.[38]The carrier sold three Airbus A300 and one Boeing 747-300M in March
2009 for $18.75 million to finance the debt.[39] By March 2011, Air India had accumulated a debt
of ₹426 billion (US$6.5 billion) and an operating loss of ₹220 billion (US$3.4 billion), and was
seeking ₹429 billion(US$6.6 billion) from the government.[40][41] A report by the Comptroller and
Auditor General blamed the decision to buy 111 new aircraft and the ill-timed merger with
Indian Airlines for the poor financial situation. [42][43]In August 2011, the invitation to join Star
Alliance was suspended as a result of its failure to meet the minimum standards for the
membership.[44][45] The government pumped ₹32 billion (US$490 million) into Air India in
March 2012.[46][47]

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On 1 March 2009, Air India made Frankfurt Airport its international hub for onward connections
to the United States from India. However, the airline shut down the Frankfurt hub on 30 October
2010 because of high operating costs.[48] In 2010, financially less lucrative routes were
terminated and the airline planned to open a new hub for its international flights at Dubai.[49] In
2012, a study commissioned by the Corporate Affairs Ministry recommended that Air India
should be partly privatised.[50]In May 2012, the carrier invited offers from banks to raise up
$800 million via external commercial borrowing and bridge financing.[51] In May 2012, the
airline was fined $80,000 by the US Transportation Department for failing to post customer
service and tarmac delay contingency plans on its website and adequately inform passengers
about its optional fees.[52]

In 2013, the then-Civil Aviation Minister Ajit Singh stated privatisation was the key to the
airline's survival.[53] However, the opposition led by the BJPand the CPI(M) slammed the
government.[54] In 2013, the Indian government planned to delay equity infusion of ₹300
billion(US$4.6 billion) that was slated to be infused into the airline slowly over a period of eight
years.[55] In January 2013, Air India cleared a part of its pending dues through funds raised by
selling and leasing back the newly acquired Boeing 787 Dreamliners.[56][57] In March 2013, the
airline posted its first positive EBITDA after almost six years and 20% growth in its operating
revenue since the previous financial year.[58][59] Air India Limited split its engineering and cargo
businesses into two separate subsidiaries, Air India Engineering Services Limited (AIESL) and
Air India Transport Services Limited (AITSL) in 2013.[60][61] In December 2013, the airline
appointed veteran pilot SPS Puri as its head of operations. The appointment was criticised by the
Air India pilots union as Puri allegedly has multiple violations to his name.[62]

Star Alliance membership

Air India became the 27th member of Star Alliance on 11 July 2014. [63][64]In August 2015, it
signed an agreement with Citibank and State Bank of India to raise $300 million in external
commercial borrowing to meet working capital requirements.[65] For FY 2014–15, its revenue,
operating loss and net loss were ₹198 billion (US$3.0 billion), ₹2.171 billion(US$33 million)
and ₹5.41 billion (US$83 million) compared FY 2011–12, which were ₹147
billion (US$2.3 billion), ₹5.138 billion (US$79 million) and ₹7.55 billion (US$120 million).[66]
[67]
 As of May 2017, Air India is the third largest carrier in India (after IndiGo and Jet Airways),
with a market share of 13%.[68][69][70][71]

Privatisation

On 28 June 2017, the Government of India announced the privatisation of Air India. A

committee has been set up to start the process.[72]

1.2 Type and Ownership Pattern:-

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Holder's Name No of Shares % Share Holding

Promoters 1000 0%

ForeignPromoter 57933665 51%

Others 30965670 27.26%

NBanksMutualFunds 10967753 9.65%

ForeignInstitutions 5636715 4.96%

GeneralPublic 5494749 4.84%

FinancialInstitutions 2597831 2.29%

1.3 Organizational Structure:-

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Board of Directors
 Shri Pradeep Singh Kharola

Chairman and Managing Director,

Air India Ltd.

 Ms. Gargi Kaul

Joint Secretary and Financial Advisor 

Ministry of Civil Aviation

 Shri Satyendra Kumar Mishra

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Joint Secretary, 

Ministry of Civil Aviation

 Shri Pankaj Srivastava

Director-Commercial, 
Air India Ltd.

 Mr. Vinod Hejmadi

Director - Finance,

Air India Ltd.

 Capt.ArvindKathpalia

Director - Operations,

Air India Ltd

 Dr.Ravndra Kumar Tyagi

Independent Director,

Air India Ltd

 Shri Syed Zafar Islam

IndependentDirector,
Air India Ltd

1.4Service Layout

Guest with Disability

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  To ensure a seamless check-in and boarding experience, we request all guests
with reduced mobility to report to the check-in counter at least 3 hours prior to the
scheduled time of flight departure.

 The policies, conditions of travel and safety regulations that apply to the carriage
of persons with a disability or reduced mobility are available on our website to
make the booking process easier.

 All necessary information about the specific requirements of a guest with a

disability / reduced mobility will be obtained at the time of ticketing / online
booking process or through our Contact Centre.

 Any medical information collected from guests with a medical condition or

disability will be kept strictly confidential.

 Air India will not refuse transportation to guests with disabilities and reduced
mobility, unless this is due to safety reasons, or due to a violation of safety,
security or the applicable State rules/requirements.

 When a guest believes he or she has been refused transportation on the basis of
disability, Air India will provide a written statement stating the reasons of such
refusal within 10 days of the incident.

 In case of change of aircraft type within Air India or a partner airline, Air India will
strive to provide similar facilities to guests with disabilities and reduced mobility,
subject to compliance of regulatory provisions. In case of in-transit offloading due
to unforeseen circumstances, persons with disability or reduced mobility will be
allocated accommodation suitable to their needs as far as practicable.

Traveling with Pets

 Air India accept birds and rabbits on flights within India (except ATR-operated
flights).

 Book your pet at least 24 hours in advance as accompanied baggage for

domestic flights.

 Live animals will be carried in the cargo hold only and cannot be carried in the
cabin.

 Air India will accept a maximum of 3 pet containers on B737 aircraft and a
maximum of 5 pet containers on A330 / B777 aircraft, subject to space
availability.

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  One guest can carry maximum of three pet containers on Domestic flights in the
aircraft hold subject to space availability.

 Air India is not liable in case of injury or death of the animal.

 Live animals along with their respective container weighing up to 32 kgs, will be
accepted as checked-in baggage. If the weight exceeds 32 kgs, the same will be
accepted for carriage as cargo.

Redressal of Guest Grievances

As per the United States Department Of Transportation 14 CFR Part 382: Non-
discrimination on the Basis of Disability in Air Travel, any guest travelling to / from the
United States on Air India encountering, any kind of discrimination can ask any crew
member or a ground staff for a Complaint Resolution Official (CRO).

Air India airport managers at airports in the USA, Brussels and at International terminal /
airport in India are trained as CRO's and are aware of the norms and regulations of this
act. The CRO is available during operating hours and will be glad to assist you with any
query or issue resulting from any kind of discrimination.

Guest can obtain a copy of the US DOT Part 382 (Non-discrimination on the basis of
disability in air travel: final rule) in an accessible format from the DOT by any of the
following means:

 By telephone via the Toll-Free Hotline for Air Travelers with Disabilities at 1-800-
778-4838 (voice) or 1-800-455-9880 (TTY)

 By telephone to the Aviation Consumer Protection Division at 202-366-2220

(voice) or 202-366-0511 (TTY)

 By mail to the Air Consumer Protection Division, C-75, US Department of

Transportation, 1200 New Jersey Ave., SE., Est Building, Room W96-432,
Washington, DC 20590

 On the Aviation Consumer Protection Division's website

The DGCA has laid down the acceptance and handling requirements for airlines, airport
operators and ground handling agencies for the protection of and provision of
assistance to disabled persons and persons with reduced mobility travelling by air, in
order to protect them against any form of discrimination and to ensure that they receive

17
all possible assistance with due respect and dignity, in the Civil Aviation Requirements
(CAR), Section 3 - Air Transport, Series 'M', Part I, Issue III dated 28th February, 2014.

1.5:- Organizational Policies:-

Code of Business Conduct and Ethics

This Code Business Conduct and Ethics (‘Code’) has been adopted by Air India (India) Limited
to comply with applicable law and the rules and regulations of the Stock Exchanges on which the
securities of the Company are listed. This Code covers a wide range of business practices and
procedures and serves as a guide to ethical decision-making. This Code does not cover every
issue that may arise, but it sets out basic policies to guide directors and employees of the
Company and its affiliates. All directors and employees must become familiar with this Code
and conduct themselves in accordance with these policies and seek to avoid even the appearance
of improper behavior. The principal duty of the Board of Directors, along with management, is to
ensure that the Company is well managed in the interests of its shareholders. The Board of
Directors plays the central role in the Company’s governance. It is the Company’s decision-
making authority on all matters except those reserved to shareholders or delegated to the
management. The Board of Directors is not expected to assume an active role in the day-to-day
management of the Company. Those who violate the policies in this Code will be subject to
disciplinary action, up to and including discharge from the Company.

Dividend Distribution Policy

The Securities Exchange Board of India (SEBI) has inserted a new Regulation 43A after
Regulation 43 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
which requires top five hundred listed companies (based on market capitalization of every
financial year) to formulate a Dividend Distribution Policy, which shall be disclosed in its
Annual Report and on its website.

SCOPE AND OBJECT OF THE POLICY

This Dividend Distribution Policy (“Policy”) sets forth the broad principles that would guide the
Board of Directors (“Board”) of Air India (India) Limited (“Company”) in matters concerning
declaration and distribution of dividend. The objective of this Policy is to establish the
parameters to be considered by the Board of the Company before declaring or recommending
dividend. The Policy reflects the intent of the Company to reward its shareholders by sharing a
portion of its profits after retaining sufficient funds for growth of the Company thus maximizing

18
shareholders’ value. The intent of the Policy is to broadly specify the external and internal
factors including financial parameters that shall be considered while declaring dividend and the
circumstances under which the shareholders of the Company may or may not expect dividend
and how the retained earnings shall be utilized, etc.

The Policy shall not apply to:

 Determination and declaration of dividend on preference shares, as and when issued by the
Company, as the same will be as per the terms of issue approved by the shareholders.

 Issue of Bonus Shares by the Company.

 Buyback of Securities.

 The Policy is not an alternative to the decision of the Board for recommending dividend, which
is made every year after taking into consideration all the relevant circumstances enumerated
hereunder or other factors as may be decided as relevant by the Board.

PARAMETERS TO BE CONSIDERED BEFORE RECOMMENDING DIVIDEND

The Board of the Company shall consider the following financial / internal parameters while
declaring or recommending dividend to shareholders:

a. Company’s earnings;

b. General financial condition;

c. Short term and long term capital requirements;

d. Acquisitions including any strategic acquisitions;

e. Investments in subsidiaries or associate;

f. Investments in other business;

g. Results of operations;

h. Cash positions;

i. Contractual obligations;

j. Overall financial position; and

k. Restrictive covenants under financing arrangements with lenders.

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IndiaAviation’s vision, mission and core value statements represent a clear message to our
clients, employees, shareholders, manufacturers, vendors and the industry at large about our
goals and our leadership responsibility as a service organization and employer. These statements
will guide all our employees as we go about our daily work and will affect not only our way of
dealing with our immediate environment but will also help us realize our ambition to become the
leader in business aviation services worldwide.

Whistle Blower Policy

1. Preamble This whistle‐blower policy (“Policy”) has been formulated as part of good corporate
governance and to provide an opportunity to employees and directors of Air India (India)
Limited (“Company”) to report in good faith, any unethical practices or any wrongful conduct.

2. Applicability of the Policy This policy applies to all permanent employees and directors of
the Company.

3. Key terms used in the Policy

I. Audit Committee: A committee constituted by the Board of Directors of the Company in

accordance with Section 177 of the Companies Act, 2013 and rules made thereunder, read with
Regulation 22 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

ii. Employee: Employee means every permanent employee or whether working in India or
abroad, including Directors of the Company.

iii. Ethics Helpline Provider: Ethics Helpline Provider means an independent third party service
provider appointed by the Company to receive whistle‐blower complaints.

iv. Ethics Committee: Ethics Committee means a committee comprising of the Head of Legal
function, the Head of Internal Audit and Assurance function, the Company Secretary and the
Head of Human Resources. The Committee shall be responsible to receive whistle‐blowing
complaints from the Ethics Helpline Provider.

v. Protected Disclosure: Protected Disclosure means any communication made in good faith that
discloses or demonstrates information that may evidence illegal or unethical behavior, actual or
suspected fraud or violation of the Company's Code of Business Conduct & Ethics or any
improper activity.

vi. Investigators: Investigators means those persons authorized, appointed, consulted or

approached by the Ethics Committee to investigate the Protected Disclosure.

vii. Subject: Subject means a person against or in relation to whom a Protected Disclosure has
been made or evidence gathered during the course of investigation.

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viii. Whistle‐blower: An Employee or Director of the Company who makes a Protected
Disclosure.

IndiaAviation’s vision, mission and core value statements represent a clear message to our
clients, employees, shareholders, manufacturers, vendors and the industry at large about our
goals and our leadership responsibility as a service organization and employer. These statements
will guide all our employees as we go about our daily work and will affect not only our way of
dealing with our immediate environment but will also help us realize our ambition to become the
leader in business aviation services worldwide.

Vision

Their long-term goal is to be the leader in business aviation services worldwide.

Mission

 They consider the safety and security of their clients and employees to be their first
priority in all our operations and services.

 They provide their clients with impeccable services and products that meet superior
standards.

 They generate sustainable financial results and increasing value for their shareholders.

 They maintain mutually rewarding and reliable partnerships with manufacturers,

suppliers and authorities.

 They act responsibly towards society and the environment and conduct business to the
highest ethical and professional standards.

 They offer their employees an excellent working environment and reward entrepreneurial
spirit and outstanding performance.

Values

 Trust: they trust each other to do the right thing for IndiaAviation as a whole.

 Honesty: they are honest to each other and they tell the truth to themselves and others.

 Alignment: they are one aligned team dedicated to serving their customers.

 Transparency: they are transparent to their customers, to each other, and to GD. 

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 

Services

As a globally recognized leader in the business aviation industry, Air India have been ensuring
your health and safety for almost half a century. Whether you are interested
in maintenance, completions and refurbishment, FBO, aircraft charter, aircraft
management or staffing, rely on our award-winning aircraft-support services to meet your needs
— wherever you are or want to go.

22
23
2.1 Industrial Overview:-
Indian Airlines (IA) is the India’s largest government owned regionalairline systems in Asia,
with a fleet of 62 aircrafts (i.e. Dornier D-228,ATR-42, Boeing 737, wide bodied airbus A300s,
one Fly-By-Wire AirbusA320s). Indian Airlines became operational since its inception in
theyear 1953 and celebrated its Golden Jubilee in the year 2003completing its 50 years of
transcendental service in air traveling.

Indian Airlines has been setting the standards for civil aviation in
Indiasince its inception. It has many first to its credit, including theintroduction of the wide-
bodied Airbus A300, Domestic shuttle serviceand Walk-In Flights. Moving with time, Indian
Airlinesisoneofthefirstorganizations in the country to establish a widespread computerizednetwor
k for reservations and ticketing.

Alliance Air is the fully owned subsidiary of Indian airlines. IndianAirlines has total staff

strength of approximately 19600 employees withan annual turnover of more than Rs 4000 crores
(1billion USD) includingthat of Alliance Air. The passenger carriage, which was 0.5 million
in1954-55, has grown to 7.78 million in 1999-2000. Today Indian Airlinestogether with its
subsidiary airlines carries a total of over 7.8 millionpassengers annually, which includes 64
national and 16 internationaldestinations with 35000 seats daily?

Indian Airlines have been divided into four regions i.e. Eastern
region,Western region, Northern region and Southern region. The IndianAirlines international
network spans over Kuwait, Oman, UAE, Qatar and Bahrain in west Asia, Thailand, Singapore,
Yangon and Malaysia insouth-east Asia and Pakistan, Nepal, Bangladesh, Myanmar, Srilankaand
Maldives in the south Asian sub-continent.

Its unique orange & white logo emblazoned on the tails of all its aircraftis perhaps the most
widely recognized Indian brand symbol that
hasover the years become synonymous with service, efficiency andreliability. It has state-of-the-
art facilities for all aspects of
maintenance.The pilots are trained at Hyderabad where the commanders andcaptains are trained
in all types of aircraft in the Indian Airlines fleet.State-of-the-art full flight simulators are
available for A300, A320 andB737 aircrafts.

The Airlines online facility provides services like Passenger

Reservation,Ticketing, Message Switching and fare display. An interactive voicerecording
system for providing flight information is also integrated withthe reservation system.

24
2.2: Current Issues
Air India stake sell: Not enough incentives to entice foreign bidders, say analysts

MUMBAI/NEW DELHI: There are several deterrents to potential investors in Air India’s initial
bid document, analysts and industry experts said. Some of them said the government was
hurrying with the sale and that only players with very strong war chest would show interest in
taking the airline on their books. 

The government on Wednesday released a preliminary information memorandum inviting

expressions of interest — the firststage of financial bids — for the airline. The government has
decided to divest 76% in an entity which includes Air India, its fully owned regional subsidiary
Air India Express and half-owned ground-handling joint venture with Singapore Airport
Terminal Services, called AI-SATS. 

“International routes aside, there aren't enough incentives to entice a foreign buyer. Government
retaining a 24% stake is a big put off, in our opinion, given the possibility of interference and
bureaucracy (despite assurance of full management control),” said Shukor Yusof, founder of
Malaysian consultancy Endau Analytics. 

The government also said that about Rs 33,392 crore of dues, which include over Rs 8,000 crore
of current liabilities, will remain with Air India and Air India Express — this means the buyer
will potentially have to take it on its books. 

“Whoever agrees to this either has (a) lots of money to burn, or (b) enjoys high-stakes
gambling,” said Yusof. 
“Air India's problems are many and complex. They're not just about debt. It's a toxic carrier and
even with the government dangling carrots (such as the 21 acres of land in Mumbai and Delhi), it
is doubtful a foreign buyer will bite. Our guess is that an Indian entity will eventually take over
the flag carrier. Or the deal might not even happen,” he added.

Air India sale a scam in the making, will file complaint if I find culpability: Subramanian
Swamy

BJP leader Subramanian Swamy has called the proposed disinvestment of Air India a 'potential
scan' and said he will file a private criminal law complaint if he finds out anyone has stepped out
of line.

The maverick MP's threat comes just days after the Ministry of Civil aviation submitted a
memorandum on divesting 76 percent stake in the national carrier. The ministry had said it

25
would transfer full management control of the debt-ridden airline to the private promoters who
pick up the stake.

This is not the first time Swamy is questioning the Narendra Modi government's intention to sell
off its stake in Air India. Last year, he had asked of the need to disinvest when the airline's
flights were occupied.

"The proposed sale of Air India is potentially another scam in the making. Selling family silver is
not divestment," said Swamy in a tweet on Saturday.

"I am watching who is doing what and will, if I see culpability, file a private criminal law
complaint," he warned.

The proposed sale of Air India is potentially another scam in the making. Selling family silver is
not divestment. I am watching who is doing what and will, if I see culpability, file a private
criminal law complaint.

Swamy, no stranger to being at odds with the stand of the party he joined in 2013, soon found a
young BJP MP defending his party. Pratap Simha, the Lok Sabha MP for Karnataka's Mysore
Constituency, responded to Swamy's tweet.

"Dear Sir, I have the highest regard for u n I am also in the parliamentary standing committee on
transport, tourism n culture under which Air India comes. Der is no meaning in spending public
money to retain loss making AI n govt has better things2 do rather than running airlines," read
Simha's tweet.

Dear Sir, I have the highest regard for u n I am also in the parliamentary standing committee on
transport, tourism n culture under which Air India comes. Der is no meaning in spending public
money to retain loss making AI n govt has better things2 do rather than running airlines

Air India, which has more than Rs 52,000 crore debt burden, is surviving on a Rs 30,000 crore
bailout package extended by the previous UPA government in 2012. 

The government has proposed selling 76% stake in the airline as well as transfer management
control to private players. Besides, Air India would divest 100% stake in Air India Express and
50% shareholding in AISATS, an equal joint venture with Singapore-based SATS.

Air India had 11,214 permanent employees as on December 1, 2017. These include 2,056 people
on deputation to other companies and agencies. The airline also had 2,913 employees on contract
and 2,661 people on deputation from other companies, among others, as per the memorandum.
Among the permanent staff, as many as 4,217 are set to retire in the next five years, it added.

26
2.3: Key-Competitors
Company Current Price Book Value P/E Ratio Market Cap
(Rs. Cr.)

SpiceairIndiaLtd. 132.50 -10.16 18.44 7,942.71

Global Vectra Helicorp Ltd. 124.15 18.53 7.83 173.81

Taneja Aerospace & Aviation

49.60 34.37 214.24 123.66
Ltd.

TAAL Enterprises Ltd. 146.00 24.12 0.00 45.50

Air India (India) Ltd. 603.95 -269.97 17.57 6,860.71

Jagsons Airlines Ltd. 2.45 -4.47 0.00 4.94

InterGlobe Aviation Ltd. 1,387.40 98.91 32.14 53,332.61

2.4: Environmental Scanning(PESTEL analysis)

Environmental scanning is a process that systematically surveys and interprets relevant data to
identify external opportunities and threats. An organization gathers information about the
external world, its competitors and itself. The next step is to conduct an internal scan of the
organization.

PESTLE ANALYSIS

This PESTLE Analysis of Air India provides a comprehensive insight into the environment of
the company. It covers all political, economic, social, technological, legal, environmental factors.

Political

27
-low barriers of market entry
-political stability

-license issue for international operations

-infrastructural constraint

-ATF price policy

 Economic

-stable economy
-economic structure
-taxes
-public investments in research and development

 -rising income level

Social

-cultural diversity
-income level is at a constant increase

-Sound pollution

-plane hijacking

-9/11 incident

Technological

-modern technologies like CAT3 and ILS

-increasing automation in businesses

 -modernization of aircrafts

Legal

-technological problems
-increasing automation in businesses

Environmental

28
-Regulations
-sustainability
-green products and services
-raw materials
-recycling
-weather conditions

2.5:Porters five forces model of competition

BARGAINING POWER OF BUYER-HIGH

 Standard Product and Services.

 Several Options available to customers.

 No Switching cost- Customer needs a reason to stay.

29
  Customer incentives such as JPmiles which allow customer to earn rewards,
book flight in easier/faster manner, and stay on the top of the upcoming
events/sales.

 Customer can research easily using internet.

 Customer loyalty does not come cheaply- the average Indian flier expects more
by paying less.

Bargaining Power of Supplier- High

 Cost of fuel has risen in years.

 Airplanes are mostly created by two manufacturers: Boeing and Air-Bus.

 Aviation Personnel are very few in numbers. The pay demand is very high.

Threats from Substitute-High

 Numerous other low-cost airlines.

 Switching cost among other transportation options is high for everything but short
distances (train, buses etc.).

 High existing barriers- regulated by ministry of Civil Aviation

30
  Trains are most preferable mode of transport when it comes to domestic travel.

Threats from New Entrance

 Very high cost and capital required for entry.

 Low profit margin.

 Difficult to differentiate product and services.

 Brand image and loyalty is important.

 New airlines must be seen as safe and reliable.

 Large airlines are very aggressive.

 Premature domestic market.

Competitive Rivalry- High

31
 Competitors like Kingfisher, Air India, and Indigo.

 In times of low or moderate industry growth, the

competitor gets fiercer as each one tries to nap
customers from other in order to keep their capacity
utilizations at acceptable level.

 The industry is extremely sensitive to economic

cycles.

 Ambush marketing campaigns.

32
33
3.1 Services Offered

With Ground Handling setup at over 50 airports in

India, Air India Airport Services is a One Stop Shop for the comprehensive range of GH services
including Security, Flight Operations & Technical Handling services which will be provided
through its parent company. Air India Airport Services with the experience and expertise,
coupled with a young and vibrant workforce is willing to take on any challenge.

Besides Narrow Body aircraft's, which Air India

Airport Services handles at most of the airports in India, it has the capability to handle wide body
aircraft's at Mumbai (BOM), Chennai (MAA), Kolkata (CCU), Kochi (COK), Kozhikode (CCJ),
Ahmedabad (AMD), Amritsar (ATQ), Lucknow (LKO), Guwahati (GAU) and Goa (GOI).

34
 From being the first and only Ground Handler in
India to handle the Airbus A380 on its maiden visit to India in 2007, to handling the futuristic
787 Dreamliners at major airports in India, Air India Airport Services is the Ground Handler for
all your needs.

Our Safety & Quality Commitment

We are committed to provide Safe, Satisfactory and

Quality Ground Handling Services to all our Customers by implementation of IATA IOSA and
ISAGO standards and involvement of all employees.

We shall review its sustainability from time to time and are committed to continually improve
the effectiveness of Quality Management Systems.

 Air India Airport Services is the largest Ground Handler in the country with over 12,000
staff and about 10,000 motorized & tow-able GSE throughout India

 Only ground handling agency authorized by the Government of India, to perform Ground
Handling at all airports in India and exclusively at joint defense user airports

 Air India Airport Services is the only authorized agency that can provide Security
Services at all Airports in India

 Provides Engineering Services for Line Maintenance & Major Maintenance, for Airbus
319, 320, 321, 310, 330, Boeing 737, 777, 747, CRJ and ATR aircraft

 Air India can provide ground handling for DIVERTED FLIGHTS at all airports in India

In-House Training Infrastructure

Air India Airport Services with its in-house Ground Handling Training Facilities at Mumbai &
Hyderabad and at Regional Training Centers, ensures world class training on terminal, ramp and
GSE maintenance activities.

Services We Offer
35
  Passenger Handling

 Ramp Handling

 Cargo Handling & Warehousing

 Technical Assistance

 Diverted Flight Handling

 VVIP & Charter Handling

 Airport Handling Training & Development

 ULD Repair Facility

 Aircraft Recovery Assistance

 Engineering /Allied Services

3.2. Four P’s (Product, Price, Place, Promotion)

Product

Air India started as an air-taxi operator and in the year 1995, it started conducting full-fledged
operations. International flights were added to its roster in the year 2004 and in the year 2007; it
acquired another company Air Sahara. Air India has a diversified portfolio that includes
both intangible and tangible products

 Air India has a fleet of 117 carriers that include Boeing 777-300ER, Boeing 737-700,
ATR72-500 and others.

 On-ground services include check-in option that is possible via mobile, the internet or by
calling or visiting airport officials. It has fully operational airport lounges for passengers
that offer capable and efficient staff assistance. Special services are offered to expectant
mothers, infant, unaccompanied minor, people with medical issues and guest with any
disabilities.

 In-Flight services include three types of seating options. First Class has private suites
with the closing door, private wardrobe, lie-in-bed seat and 23-inch television with
Headphone. Business Class seats are extra wide with personal screen and reading light.

36
 Economy class has comfortable seats and international flights have a reading light and
10.6-inch screen television. Airways offer several foods, beverage and entertainment
options in flight.

Price

Pricing plays a decisive role in the airline industry because of intense competition. Air India has
adopted a fair pricing strategy. It has three different classes of services and pricing policy is
based on individual service for that class. For instance ticket prices for first class passengers are
much higher because of extra services and benefits allotted to customers. Moreover, prices for
business class and economy class are gradually lower because of fewer services. Air India offers
concessional fares to students, patients, senior citizens and armed forces so that they are
encouraged to fly with this airline. It also offers additional benefits to its regular flyer to maintain
their loyalty towards Air India.

Place

Air India operates its flights both in domestic front and in international arena from its main hub
located at ChhatrapatiShivaji International Airport in Mumbai and its secondary hubs located at
Kolkata, New Delhi, Chennai, Bangalore, Abu Dhabi and Amsterdam. Its operations include
three hundred daily flights to nearly forty-eight domestic ones and twenty global destinations to
seventeen countries in North America, Europe and Asia.  In the year 2004, Air India commenced
its first international flight to Colombo and its first long-haul flight was to London in the year
2005.

Brussels Airport has been its scissors hub since the year 2007 for transatlantic connections to the
United States and Canada but later Brussels was replaced by Amsterdam Schiphol Airport since
2016, 27th March.  Air India has a wide-spread distribution network that ensures accessible
offices and prompt services related to reservation, cancellation, confirmation and enquiries. It
also offers mobile and internet services to suit individual needs and requirements.

37
Promotion

Air India has adopted quite a few promotional plans for its airlines. It has launched several ad
campaigns that are shown via television, newspaper and magazines. It also relies heavily on
mouth publicity and its travel agents. Air India has realized the potential of star marketing and
has roped in Indian film actor Shahrukh Khan as its brand ambassador. He is seen in various ad
campaigns thus creating a positive hype and visibility for the company.

To its regular customers, Air India offers Visa Card from Citibank that collects points after every
flight and can be redeemed at later date. The company has been the recipient of awards and
recognition. It received Most Respected Company in the year 2004, Best Domestic Airline in the
year 2005, Best Airline Award in the year 2007, Program of the year in 2008 and Best Cargo
Airline in the year 2016.

38
3.3:- STP (Segmenting Targeting and Positioning)
Market segmentation is the process of dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers (known
as segments) based on some type of shared characteristics. In dividing or segmenting markets,
researchers typically look for common characteristics such as shared needs, common interests,
similar lifestyles or even similar demographic profiles. The overall aim of segmentation is to
identify high yield segments– that is, those segments that are likely to be the most profitable or
that have growth potential – so that these can be selected for special attention (i.e. become target
markets).

Segmentation according to AIR INDIA

Air India use the mix of demographic and Psychographic Segmentation

 Strategies to Identify and determine the important characteristics of the market helping the
company in evaluating the nature of each segment of customers.

Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments consisting of the customers whose needs and
desires most closely match your product or service offerings. It can be the key to attracting new
business, increasing your sales, and making your business a success.

The beauty of target marketing is that by aiming your marketing efforts at specific groups of
consumers it makes the promotion, pricing, and distribution of your products and/or services
easier and more cost-effective.

Targeting according to AIR INDIA

Since the varied segment of customers has been rewarded by the company through loyalty
programmers, therefore the company uses differentiated targeting strategy to identify the
attractiveness of each segment.

Positioning refers to the place that a brand occupies in the mind of the customer and how it is
distinguished from products from competitors. In order to position products or brands,

39
companies may emphasize the distinguishing features of their brand (what it is, what it does and
how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or
luxurious, entry-level or high-end, etc.) through the marketing mix. Once a brand has achieved a
strong position, it can become difficult to reposition it.

Positioning according to AIR INDIA

The company has positioned itself based on the leadership position in strategic markets,
alliances, and diverse customer groups. It uses customer class based positioning strategy.

3.4:- Distribution Channels

40
Computer Reservation System: Co-hosted in SABRE, reservations can also be made on all
major Computerized Reservations Systems (CRS).

 SABRE (co-hosted)

 Abascus

 Amadeus

 Apollo

 Axess

 Galileo

 Infini

 Topas

 Travelsky

 World span

41
Air India offers call Centre facilities for international and domestic flights and services that
operate on a 24x7 basis.

Reservation facilities are available through Air India’ multi-purpose call Centre number 3989
3333 – across Mumbai, Delhi, Chennai, Hyderabad, Bengaluru and Kolkata.

Air India' electronic ticketing service enables guests to book tickets to any destination on the
airline's route network through the Internet.

Direct Distribution- Call centers or Websites:

Call Centers: Air India have a customer oriented approach and they provide 24 hours support to
their customers whenever they are in need. Customers can talk to customer care of Air India by
calling on the toll free number for any assistance. Air India contact number is easily available to
its customers through the online website of the company. The passengers can find the number
online and can call anytime on this number to know about the schedule and status of their flights.
Air India contact number is also provided on makemytrip.com with the address of its
headquarters and the address of the nearest regional office. Air India contact details are also
made available on the boarding passes and online tickets of the passengers. 

The passengers are given brief information regarding the details which will help them to come
out of any emergency situation. The company website is timely updated with all the latest news
and information which are also made available to the public by the airliner form time to time.
The toll free numbers make the passengers feel comfortable in choosing the services of Air India.
Air India contact number is also required when the passenger wants to know about the current
status of the flights like the arrival of the flights and departure of the flights to and from the
airports. There are different contact numbers of Air India for every state, making it easy for
people to reach the customer care.

Website: Air India website, airindia.com, is India's leading travel site, which is available in 35
country sites and 20 multilingual sites in 8 languages, providing a complete travel solution
offering flight bookings, hotel bookings and travel insurance.

Log on to our multi-country & multi-lingual website where you can benefit from a host of
services, offers, rewards and much more, every time you visit. With 35 country sites and 20
multilingual sites and 24x7 real-time content updates, you can be assured of viewing customized
offers and content in your language preference.

42
You can book air tickets with Air India, and other partner airlines like British Airways,
Lufthansa, Air Canada, Brussels Airlines, Etihad Airways, Malaysia Airlines, Qantas and United
Airlines.

Air India also offers an exclusive portal for travel agents – www.9wagents.com.

Online Booking Engine: You can book your flights with one of the best-in-breed internet
booking engine with 27 currencies and multi-payment options. It is a simple 4-step booking
process linked real-time to Air India’ reservation system, offering 3 options of Fixed, Flexible &
Lowest. You can purchase Travel Insurance whilst booking and get compensated for lost or
delayed baggage, flight delays due to fog, medical expenses during your trip and protection of
your home for loss due to fire or burglary while you are on the move. You get a confirmation of
your booking on SMS. You can benefit from our multi-city booking option and get your past
flight searches in just one click.

Book online with our codeshare and interline partners, which allow us to provide you with a
greater choice of destinations with seamless connections. Earn 500 Bonus JPMiles every time
you book online and benefit from a host of other offers on flights through promotional codes,
corporate deals, special offers, etc. Indian Armed Forces, Paramilitary Forces and their families
can avail of special discounted fares when they book on airindia.com.

Check-in: Appreciating their guests’ invaluable time, they pioneered easier ways to check-in:

 Web Check-in: Web check-in and choose your preferred seat in 4 simple steps
before you reach the airport

 Kiosk Check-in: Check-in via our easy-to-use interactive Kiosks and choose the
seat of your preference from the real-time seat map displayed on the touch screen.

Brick- and- Mortar Travel agencies: Brick and mortar is a traditional street-side business that
deals with its customers face-to-face in an office or store that the business owns or rents. The
local grocery store and the corner bank are examples of brick-and-mortar companies. Brick-and-
mortar businesses can find it difficult to compete with web-based businesses.

Now days as everyone is technology oriented they prefer to buy ticket or reservations online.
Online transaction saves money, time and effort of the passengers.

43
(Narration- Brick- and- Mortar travel agencies of air India is not available on web)

Online Travel Agencies

IVR Ticketing (Interactive Voice Response (IVR) based Payment and Ticketing): Book and
pay for your eTickets over an exclusively customized and secure Interactive Voice Response
(IVR) system.

Once you confirm that you wish to pay through the contact Centre, our executive will transfer
you to a secure IVR system that will request you to enter your credit card details. On successful
authorization of the credit card, you will get an automated response and your eTicket will be sent
to you via e-mail instantly.

This service is currently available for all bookings made through our India, Canada, United
States of America and United Kingdom contact Centre.

To book tickets:

 Within India, call 39893333* or 08039243333

 In U.S. and Canada, dial our toll free number 1-877-uflyair Indiai.e. 1-877-835-9538

 In U.K. call +44 0808 101 1199

Make My Trip: Through makemytrip.com, ticket booking has become easy and hassle free. For
booking your tickets you are required to run to the ticket outlet earlier, which was a bit hectic.
Business travelers who are flying don’t have much time and do not prefer to run to the counters
for purchasing tickets and prefer online booking. Online booking is provided by
makemytrip.com at zero booking fees and with various discounts. You can also take a print of
your tickets at the comfort of your home from this portal. The special packages, discounts and
other luring options make your trip more economical and joyful.

Yatra:Through Yatra.com a customer can get an exclusive offer for their travel like:

 Enjoy up to 20% discount in Première and 10% discount in Economy for travel on Air
India.

 Avail fares starting Rs.958 on select routes within India.

 This offer is valid on one-way and round trip bookings.

 Travel validity should be between February 24 and March 24, 2018.

 Tickets must be purchased between February 17 - 23, 2018

44
3.5:- Promotion Strategy
Air India has an all new way to promote its brand. The national carrier has asked all its
employees, around 22,000 of them to paste stickers of their print advertisement of its latest
schemes on the rear windshields of their car. The promotion drive was confirmed by Dhananjay
Kumar, senior manager, corporate communication, Air India saying that it’s a good way to
promote the brand and the employees should do it.

According to The Indian Express, the airline had initially decided, after a meeting of a special
committee formed to formulate a new promotion strategy, that officers of senior-manager grade
and above, who claim fuel reimbursement, would be mandated to paste these stickers on their
vehicles.

“The decision to involve all employees was taken on Friday as the airline wanted to ensure
maximum reach and save money by not issuing advertisements for the same scheme several
times. From now, after issuing an advertisement for a new scheme once, they will be promoted
through stickers on employees’ vehicles,” sources added.

It also said that a senior official in Delhi had dispatched the copies of the stickers and has asked
all general managers to distribute it in their respective offices.

The move was cleared by Air India’s chairman and managing director Ashwani Lohani who was
briefed by the committee Wednesday. Lohani had recently directed the management to work out
a new strategy to promote the brand as several people were unaware about newly launched
schemes, said sources.

In order to check if the staff is ‘sticking’ to the order, the airline has asked departments within
the administration to monitor compliance through “surprise checks”.

45
4.1 Sources of Finance:-

46
Holder's Name No of Shares % Share Holding

Promoters 1000 0%

ForeignPromoter 57933665 51%

Others 30965670 27.26%

NBanksMutualFunds 10967753 9.65%

ForeignInstitutions 5636715 4.96%

GeneralPublic 5494749 4.84%

FinancialInstitutions 2597831 2.29%

4.2 Ratio Analysis:-

Short Term Solvency Ratio

Current Ratio

= 1.28The current ratio of AIR INDIA meets the bare minimum of 1.33, which is

considered by banks as the minimum acceptable level for providing workingcapital finance. The
ratio indicates that the company not enjoys a better financial health and would not be able to
meet its immediate debts. A ratiounder 1 suggests that the company would be unable to pay its
debts if theycome due at that point. While this shows the company is not in
goodfinancial health, it does not necessarily mean it would go bankrupt- as thereare many ways
to access financing. AIR INDIA dealings consists a major of Letter of Credits and bill of
Exchanges. Apart from this the policy of AIR INDIA to issue the ticket only on cash basis has
helped AIR INDIA in

maintaining this ratio.

Liquid Ratio

= 1.09

The liquid ratio of the company is more than the preferred limit of 1. This
ismainly because of the cash transactions which AIR INDIA does. The quick ratio is more
conservative than the current ratio, a more well-known

47
liquidity measure, because it excludes inventory from current assets..

Working Capital Ratio

=0.08The working capital ratio is an indicator of the efficiency of a company's

management of stocks, debtors and creditors. If the working capital ratio is0.2, this means the
company needs 8p of working capital for every Rs1 of annual sales. If annual sales increase by
Rs1,00,000 of then the companywillhave to invest Rs8,000 in working capital to be able to meet
this. A

working capital ratio of less than 1 indicates negative working capital.

Fixed Assets Turnover Ratio

=2.61297956

Fixed asset turnover is the ratio of sales (on the Profit and loss account) tothe value of fixed

assets (on the balance sheet). It indicates how well the business is using its fixed assets to
generate sales. Generally speaking, thehigher the ratio, the better, because a high ratio indicates
the business hasless money tied up in fixed assets for each rupees of sales revenue. Adeclining
ratio may indicate that the business is over-invested in fixed assets.However, financial analysts
claim that such a ratio is inconclusive:companies do not generally cite or reference these figures.
The fixed assedturnover ratio of AIR INDIA has been on the lower side. That means itshows that
the company has been not effective in using the investment infixed assets to generate revenue.
There is no exact number that determineswhether a company is doing a good job of generating
revenue from itsinvestment in fixed assets. This makes it important to compare the mostrecent
ratio to both the historical levels of the company along with peer company and/or industry
averages. But due to lack of availability of data thiscould not be done.

Operating Ratio

=104.52%

It is a ratio that shows the efficiency of a company's management bycomparing operating

expense to net sales. The smaller the ratio, the greater the organization's ability to generate profit
if revenues decreases. Anoperating ratio ranging between 75% and 80% is generally considered
asstandard. This ratio is considered to be a yardstick of operating efficiency but it should be used
cautiously because it may be affected by a number of uncontrollable factors beyond the control
of the firm. Moreover, in somefirms, non-operating expenses from a substantial part of the total
expensesand in such cases operating ratio may give misleading results. Operatingratio actually
means how much is being spend to earn a rupee. Hence, the

lower the ratio, the better it is.

48
An operating ratio of 104.52% means Rs 104.52 is being spent to earn arupee. So it is not a good
figure for AIR INDIA. Precautions are to be takento reduce the operating ratio. One way to
combat the effects of a businessrecession is to work harder by selling ticket and reduce the other
overheadexpenses. That's fine, and it's certainly important to maximize every
businessopportunity during a slump. It's much easier to reduce these expenses 10 percent through
more effective management

4.3 Net profit or Net balance sheet

Balance sheet(Rs crore)

Mar ' Mar '

Mar ' 09 Mar ' 08 Mar ' 07 06 05

Sources of funds

Owner's fund

Equity share capital 145.00 145.00 153.84 153.84 153.84

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 63.35 5,668.13 -261.97 185.96 171.12

Loan funds

Secured loans 2,365.95 2,891.75 1,846.69 1,243.24 565.95

28,542.0
Unsecured loans 7 15,521.65 5,818.41 2,378.67 695.74

49
 Mar ' Mar '
Mar ' 09 Mar ' 08 Mar ' 07 06 05

31,116.3
Total 7 24,226.53 7,556.97 3,961.71 1,586.65

Uses of funds

Fixed assets

24,329.4
Gross block 0 18,654.56 6,471.27 7,109.88 7,121.60

Less : revaluation reserve - - - - -

Less : accumulated depreciation 1,838.05 760.12 4,366.85 4,914.43 4,641.18

22,491.3
Net block 5 17,894.44 2,104.42 2,195.45 2,480.42

Capital work-in-progress 5,011.37 3,972.63 2,994.75 1,185.33 21.91

Investments 123.18 90.12 90.70 87.02 58.26

Net current assets

Current assets, loans & advances 8,746.02 7,478.95 4,386.48 3,164.77 2,116.88

Less : current liabilities & provisions 5,255.55 5,209.61 2,019.38 2,670.86 3,090.82

Total net current assets 3,490.47 2,269.34 2,367.10 493.91 -973.94

Miscellaneous expenses not written - - - - -

31,116.3
Total 7 24,226.53 7,556.97 3,961.71 1,586.65

50
 Mar ' Mar '
Mar ' 09 Mar ' 08 Mar ' 07 06 05

Notes:

Book value of unquoted investments 122.42 89.36 90.05 - -

Market value of quoted investments 43.03 47.07 36.78 - -

25,918.4 25,994.7
Contingent liabilities 2 26,340.93 5 - -

Number of equity sharesoutstanding

(Lacs) 1450.00 1450.00 1538.36 1538.36 1538.36

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52
5.1:- Performance Analysis of the company

Air India recently reported numbers for the quarter and the year. For the fourth quarter ending 31
March 2016, the airline reported an impressive net profit of Rs 3,972 million and for the year a
net profit of INR 11,733 million. After extensive research into qualitative and quantitative details
an analysis is presented below:

Strategic shift

Air Indiahas moved away from simply selling price to its core competency of being a full service
carrier. Sources indicate that an increased focus on key business routes, increased international
flying and realigning slots towards international routes is under-way. This is reflected in the
airline’s revenue performance where the revenue per available seat kilometer (RASK) of Rs 4.37
which was the highest amongst all quarters for the year. The alliance with Etihad continues to
help with feed the network and the airline transported 6.02 million passengers for the quarter and
23.3 million passengers for the year.

Operational performance

Air India has an increased focus on efficient operation which is reflected in their cost per
available seat kilometer going down to Rs 4.15 for the fourth quarter and Rs 4.10 for the year
(15% reduction year-on-year). Looking at quarterly trends the CASK went down by one per cent
in Q2 vs Q1, five per cent in Q3 vs Q2 and seven per cent in Q4 vs Q3. While the CASK was
influenced by fuel price declines, the focus on efficiency is quite evident.

Aircraft utilization has been improving and stands at 13.2 hours per aircraft across the network
for Q4 and 13 hours per day for the full year. Looking at a domestic and international split – on
the international side with an average fleet of 35 aircraft in Q4 utilization was at 16 hours per day
(due to the longer stage lengths) while domestic utilization of 12 hours per day with a fleet of 61
aircraft. Air Indiahas managed to increase capacity without a fleet increase by driving utilization
and given the soaring demand this capacity has been absorbed by the market.

Load factors also were impressive with fourth quarter load factors at 81% and 85% respectively
for domestic and international, while for the full year load factors came in at 80.6% and 83% for
domestic and international. Given that break-even load factors for Air India are in the range of
70% – 75% for international and 77% – 80% for domestic, it is evident that the international
operations significantly contributed to the overall profitability.

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Financial Performance

The focus on efficiency and soaring demand coupled with lower fuel prices was reflected in Jet’s
financial performance. Passenger revenues for the year came in at Rs 179,246 million which
were 9% higher than the previous year. The EBITDAR margin was 20% with the EBIT margin
coming in at 6%.

With targeted sales and strong engagement with the travel community, domestic revenue per
passenger was almost Rs 6,000 while international was Rs 13,500 excluding ancillary income.
Remarkably Air Indiareported 16% of sales from the web and has a target to increase this to
above 20% which is quite ambitious. Web sales carry minimal costs and this strategy will help
reduce cost of sales further. Air Indiais also attempting to break consolidator influence by
adjusting commissions and if successful this will also have a positive impact to cost of sales and
overall revenue performance.

The debt on books has been a significant cause of concern with the investment community and
Air India has undertaken debt reduction measures. Air India reports having repaid Rs 7,930
million of debt in the fourth quarter and Rs 16,800 million for the year. However, it is unclear if
this is a debt recast and repayment of debt by replacing debt on better terms or how this
repayment was structured given that the EBIT for the year came in at Rs 12,190 million and even
after exchange rate adjustments and accounting for extraordinary income our numbers do not
balance out. The annual report of Air India will likely have additional information on this aspect
and will need to be studied.

Finally, Air India also renegotiated several contracts including maintenance, credit cards and
airport contracts which further helped in a cost reduction.

Costs analysis

Declining fuel prices continued to help overall profitability. An examination of the cost structure
reveals how these have changed from last fiscal year FY15 to this year FY16. Line item costs
when taken as a percentage of operating costs indicate that:

 Fuel costs went from 34% to 26.5%

 Staff expenses as share of operational expenses went from 11.4% to 12.6%, largely
driven by higher pilot costs

 Maintenance expenses went from 11% to 11.5% due to the higher aircraft utilization and
the ageing fleet

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  Interest expenses as a percentage of revenue came down from 5.4% to 4.8%

The acting CEO has indicated that a control on costs will be a core focus and the first quarter of
this financial year, FY17, will reveal how far this goes.

Challenges ahead

While the airline did well this year, challenges have started to creep up. Air India continues to
work with an acting CEO and the strategic partnership with Etihad seems to be a cause of
consternation with long-time hands at Jet. Air India has also been moving out from smaller cities
with slots being shifted to international flying – which tends to indicate that the focus on feeding
the network of Etihad continues.

Pilot staffing is an issue with a number of pilots resigning from the airline putting further strain
on existing pilots and forcing a greater reliance on the more expensive expatriate pilots. Full
service carriers like Vistara are grabbing the premium flyers from Air Indiaand the anticipated
policy change especially on the 5/20 rule will only exacerbate this situation. With capacity
induction by all carriers, downward pressure on yields continues and has forced an Rs 200
million marketing campaign by Jet; its first in a long time.

Outlook

Overall, it was a strong year for Jet. The profit reported for FY16 was the highest ever annual
profit in its history and beat the profit target set by the turnaround plan both in numbers and by
time (plan had the return in FY17). With strong demand continuing in the Indian market, Air
Indiaseems to be well positioned. Yet with oil prices creeping up, declining oil prices and the
impact on demand from the Middle East (a core market for Jet) and intense competition in the
domestic segment, to continue this performance could be extremely challenging this year.

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5.2:- Reasons for the expansion/ Contraction or diversification of the
company
Air IndiaAirways Group connect 65 destinations, including domestic and overseas
The second largest airline Air IndiaAirways on Tuesday has announced 96 new flights on the
domestic network during the Monsoon season, including 14 new direct, non-stop flights to small
town set Airways Group connect 65 destinations, including domestic and overseas
The second largest airline Air IndiaAirways on Tuesday has announced 96 new flights on the
domestic network during the Monsoon season, including 14 new direct, non-stop flights to small
towns under the regional connectivity scheme.
Smaller rival SpiceairIndiahas already announced three new routes under the RCS in the past
fortnight.
This augmentation of domestic services between smaller cities is a result of the rising demand
for aviation services between these fast-growing cities, reflecting their economic progress, the
airline has said in a statement.
Announcing the monsoon schedule, Jayaraj Shanmugam, chief commercial officer of the airline
said, “our new non—stop flights, additional frequencies, as well as direct, one—stop flights are
part of our continuing efforts to provide connectivity, and choice.”
“The new connections will enable guests from emerging cities to connect seamlessly on to metro
cities throughout the country as well as onwards to our wide international network,” Shanmugam
said.
Some of the key none—stop direct flights include Delhi-Indore-Delhi, Ahmedabad—Indore—
Ahmedabad, Delhi—Lucknow— Delhi, Delhi—Jaipur—Delhi, Lucknow—Jaipur—Lucknow,
Indore— Jaipur—Indore, Jaipur—Udaipur—Jaipur, among others.
“These new flights will deepen our domestic footprint, helping us support and facilitate travel
aspirations of our guests from these regions,” the airline said.
The airline has been witnessing steady growth in guest traffic, primarily in the North, especially
between cities like Jaipur, Lucknow, Chandigarh, Dehradun, Udaipur and Indore.
The airline also announced direct, return none—stop flights from Indore to Ahmedabad and
Jaipur, making it the only airline to do so. It has also commenced new, direct none—stop flights
between Delhi and Indore, Lucknow, Jaipur as well as connecting Jaipur with Udaipur and
Lucknow.
Eleven direct, one—stop flights between Delhi and Silchar, Dehradun and Jaipur, Chandigarh
and Dehradun, Chandigarh and Lucknow, and Indore and Lucknow.
Further Air Indiahas increased its capacity on key routes via additional frequencies, that include
a second flight between Bengaluru and Guwahati, a third frequency between Delhi and Indore, a

56
seventh daily frequency between Delhi and Lucknow, and Delhi and Jaipur, together with a
second daily flight between Delhi and Udaipur.
Air IndiaAirways Group connect 65 destinations, including domestic and overseas which include
Southeast Asia, South Asia, Middle East, Europe and North America. The group has a fleet of
113 aircraft, comprising Boeing 777—300 ERs, Airbus A330—200/300s, Next Generation
Boeing 737s and ATR 72— 500/600s.
Under the regional connectivity scheme.
Smaller rival SpiceairIndiahas already announced three new routes under the RCS in the past
fortnight.
This augmentation of domestic services between smaller cities is a result of the rising demand
for aviation services between these fast-growing cities, reflecting their economic progress, the
airline has said in a statement.
Announcing the monsoon schedule, Jayaraj Shanmugam, chief commercial officer of the airline
said, “our new non—stop flights, additional frequencies, as well as direct, one—stop flights are
part of our continuing efforts to provide connectivity, and choice.”
“The new connections will enable guests from emerging cities to connect seamlessly on to metro
cities throughout the country as well as onwards to our wide international network,” Shanmugam
said.
Some of the key non—stop direct flights include Delhi-Indore-Delhi, Ahmedabad—Indore—
Ahmedabad, Delhi—Lucknow— Delhi, Delhi—Jaipur—Delhi, Lucknow—Jaipur—Lucknow,
Indore— Jaipur—Indore, Jaipur—Udaipur—Jaipur, among others.
“These new flights will deepen our domestic footprint, helping us support and facilitate travel
aspirations of our guests from these regions,” the airline said.
The airline has been witnessing steady growth in guest traffic, primarily in the North, especially
between cities like Jaipur, Lucknow, Chandigarh, Dehradun, Udaipur and Indore.
The airline also announced direct, return non—stops flights from Indore to Ahmedabad and
Jaipur, making it the only airline to do so. It has also commenced new, direct non—stop flights
between Delhi and Indore, Lucknow, Jaipur as well as connecting Jaipur with Udaipur and
Lucknow.
Eleven direct, one—stop flights between Delhi and Silchar, Dehradun and Jaipur, Chandigarh
and Dehradun, Chandigarh and Lucknow, and Indore and Lucknow.
Further Air Indiahas increased its capacity on key routes via additional frequencies, that include
a second flight between Bengaluru and Guwahati, a third frequency between Delhi and Indore, a
seventh daily frequency between Delhi and Lucknow, and Delhi and Jaipur, together with a
second daily flight between Delhi and Udaipur.
Air IndiaAirways Group connects 65 destinations, including domestic and overseas which
include Southeast Asia, South Asia, Middle East, Europe and North America. The group has a

57
fleet of 113 aircraft, comprising Boeing 777—300 ERs, Airbus A330—200/300s, Next
Generation Boeing 737s and ATR 72— 500/600s.

Air IndiaAirways to raise funds for fleet expansion

Air IndiaAirways is looking to raise capital to fund its fleet induction and expansion plans.
Air Indiahas ordered 75 Boeing 737 Max and is negotiating for additional 75 planes of the same
type. The airline had also ordered Boeing 787-9 planes but has deferred the induction.
Raising equity will help to arrange pre-delivery payments to Boeing, say sources familiar with
the matter. "The fundraising will be for expansion," he added.
The airline appointed J P Morgan to help raise funds. Jet's management has been in talks with
Delta for a stake sale. Simultaneously, its founder chairman Naresh Goyal is talking to Etihad
too for capital infusion. Etihad holds 24 per cent stake in Air IndiaAirways.
Air IndiaAirways did not respond to an email query on the topic.
An Economic Times report on Tuesday said major airlines like Lufthansa and Air France-KLM
and private equity funds like KKR, Blackstone and TPG too have been approached for fund
infusion. The report added that the airline will issue 24 per cent equity to the new investors and
raise $ 200-250 million.
Fundraising will also help pare debt. The airline has around Rs 9,000 crore debts of which Rs
2,800 crore is related to aircraft acquisition. Around $200 million (Rs 1,300 crore) of debt is due
for repayment in the financial year (FY) 2017-18 and the airline hopes to use internal accruals
for repayment.
"Our endeavor is clearly to generate cash from the business and repay that. As you have seen in
the last two years, we have paid close to Rs 3,000 crores of debt generating out of cash flow
from operations," the airline's acting Chief Executive Officer Amit Agarwal told analysts in a
conference call post fourth-quarter results.
Air Indiamade a consolidated profit of Rs 438 crore in FY17 but this was due to non-operational
items like gains from lease back of planes and from land development. Its annual interest
spending in FY17 was around Rs 850 crore. "The airline would certainly want to cut debt and
save interest cost," a sector expert said.

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5.3:- Comment on Organization Leadership
Name Designation Role

Naresh Goyal CEO,Founder Mr. Naresh Goyal serves as

the Non-Executive Chairman
of the Board of Air IndiaIndia
Limited. He is a non-resident
Indian national. He is the
chairman of Air India Ltd. He
is also the chairman of the
Board of Directors. Mr. Goyal
holds a Bachelors of
Commerce degree and after
completing his education in
1967, Mr. Goyal joined the
travel business and underwent
practical training with several
foreign airlines. Mr. Naresh
Goyal has more than 35 years
of experience in the civil
aviation industry. 

Gaurang Shetty Whole Time Director Mr. Gaurang Shetty has been
Whole Time Director of Air
IndiaIndia Limited. He was
Acting Chief Executive
Officer of the Company. He
has been appointed as Acting
Chief Executive Officer
effective February 29, 2016.
He joined the Company in
1996 as General Manager –
Marketing and was promoted
to Vice President – Marketing
in 2004. Currently, Mr. Shetty
is Senior Vice President –
Commercial.

Kevin Knights Nominee Director

Mr. Kevin Knight serves as
Nominee Director of Etihad

59
 Airways PJSC of the
Company. He has more than
30 years of experience.

Harsh Mohan Nominee Director Mr. Harsh Mohan serves as

Nominee Director of Etihad
Airways PJSC of Air India
(India) Ltd. He is a Chief
Group Support Service Officer
for Etihad Aviation Group.

Anita Goyal Non-Executive Non-

Independent Director
Ms. Anita Naresh Goyal
serves as the Additional Non-
Executive Non-Independent
Director of Air IndiaIndia
Limited. She has over 25 years
of experience in Marketing
and Sales and other functions
in the Airline Industry.

60
5.4:- Market Share / Growth Rate of the company

India remained the world’s fastest growing domestic aviation market for the third straight year in
2017 as economic and network expansion bolstered the sector, according to global airlines’ body
IATA. Globally, Revenue Passenger Kilometres (RPKs) - a measure of passenger volumes - rose
by 7.6 per cent in 2017, registering “above-trend growth” that was ahead of the ten- year average
rate of 5.5 per cent.

“The domestic India market posted the fastest full-year growth rate for the third year in a row
(17.5 per cent), followed by China (13.3 per cent),” the International Air Transport Association
(IATA) said in a report released last week.

The grouping noted that such growth rates were driven mainly by the comparatively strong rates
of economic expansion seen in each country, as well as stimulus from additional airport pairs
being offered. Such new services translate into time savings for passengers and have a similar
stimulatory impact on demand as cuts in airfares, it added. “India posted the fastest domestic
RPK growth for the third year in a row, driven by economic and network expansion,” the report
said.

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In December also, India registered the highest growth rate of 17.4 per cent. Many Indian carriers
have embarked on ambitious expansion plans and local airlines have placed orders for over 900
aircraft.

Since late 2014, lower airfares have helped in boosting passenger growth - which in 2017 was
also supported by broad-based pick-up in global economic conditions. This year, IATA said that
full-year RPK growth is expected to slightly slower than recorded in 2017. “This is mainly
because increases in airline input costs — notably fuel prices but also labour costs in certain
countries — mean that we are unlikely to see the same degree of demand stimulation from lower
airfares in 2018 than we have in recent years,” the grouping said.

IATA represents some 280 airlines comprising 83 per cent of global air traffic.

5.5:- SWOT Analysis of the company

Air India is the leading airlines in the India. Air India is based on
domestic enplaned passengers and scheduled domestic departures. Air India has shown a strong
performance in revenues in 2008. Strongoperating performance lends financial stability to the
company whichcould be leveraged to seek more growth avenues of growth in
future.However, the rising prices of aviation turbine fuel could adversely affect
Air India operating margins.
StrengthsOperational performance
Air India registered a strong operational performance for fiscal 2008-09.The company recorded
revenues of Rs 15000 Crore during the fiscalyear, an increase of 70% over 2005-06. During
fiscal year 2008, the
company’s revenue growth was driven by increase in passenger segment
revenue and merger with Indian airlines. The increase in passenger revenues primarily was due
to an increase in capacity, and an increase inload factor. In addition the revenue growth is backed
by growth in freightand cargo revenues, which was a result of higher rates charged. This
growth was also partly driven by improved efficiency in the company’s
operations. Strong operating performance lends financial stability to thecompany which could be
leveraged to seek more growth avenues in the
future.

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Market leadership
Air India is the leading airlines in the India. The airline has been rankedthe top in
India’s domestic airline (in terms of number of passengers) by
the bureau of transportation statistics (BTS) in 2005. Air India newlyorders about 68 from
Boeing and 43 from Airbus. Air India dominatesthe markets it serves, ranking first in market
share in India. Its strongmarket position is driven not just by consistent delivery of low fares
butalso due to reliable service, frequent and convenient flights, comfortablecabins, in-flight
experience, frequent flyer programs, hassle-free airports,and friendly customer service. Strong
market position gives the company
the advantage of scale and helps it in strengthening its brand image.
Weaknesses
High dependence on passenger revenues
Passenger revenues accounted for major part of the Air India totalrevenue. Cargo services allow
airlines to generate additional revenuesfrom existing passenger flights. In addition, cargo
revenues are usuallycounter-cyclical to passenger revenues and have lower demand elasticitythan
passenger business, which allows airlines to pass on fuel price hikesto customers. Small cargo
business exposes Air India to the demandfluctuations in passenger business.
Lower load factor
Though the overall operating performance has been steady, Air India
 passenger load factor of 63.2%, which was the company’s record, lagsthe industry average of
75% in 2006-07.The load factor difference iseven greater when compared to other low fares
carriers such as Air 
Deccan. The company’
s load factor is decreasing year by year, in 2005-06 load factor is 66.2% which is more
than present load factor. Air Indiaload factor is likely to be low because of the much higher
frequency
operated on each route. Lower load factor could decrease the company’smargins.
Opportunities
Growing demand for low cost airlines
In mature markets demand for air travel is increasingly being driven byticket price and consumer
confidence. A survey by the US CommerceDepartment shows that ticket price is the number one
criterion for  passengers when selecting a flight, well ahead of the availability of anon-stop
service. As markets have progressively matured, the GDPelasticity of air travel demand has
declined. In the US for example, a 1%growth in GDP will typically result in a 1.2% growth in
domestic air travel, compared with a growth of almost 2% in air travel some 20 yearsago.

63
Growth in freight business
The Indian economy is one of the fastest growing in the world, but the
 boom is not without its stops, starts, and bottlenecks, all of which also
make themselves felt in the country’s freight transport sector. Air India
had also launched a major cargo incentive scheme for cargo agents of Air India and erstwhile
Indian on the entire network. The scheme, whichgenerated enormous response, entitled top
producing agents of eachregion to become eligible for an all-inclusive incentive trip on Star 
Cruise.
In January 2008, Air India registered a growth of 6.4% whereas industryshowed negative growth
of 12% compared to September 2007. In themonth of March 2008, industry grew by 24.8% over
January 2008carriage whereas Air India cargo showed an increase of 43.4%. Strong
economic and foreign trade growth is underpinning the freight upturn.
Expanding passenger traffic in Asia Pacific
The demand for air travel to the Asia Pacific is rising driven by increasedeconomic activity in
emerging Asian countries such as China and India.Traffic is projected to grow at 7% in China
and India combined, abovethe world average of 5%. Further, the share of Asia Pacific region
inworld passenger traffic (revenue passenger kilometers) is forecast to risefrom 25% in 2003 to
31% in 2023. Against this backdrop, Air India iswell positioned to benefit with its increasing
emphasis on Asia-Pacificoperations.
Threats
Increasing aviation turbine fuel prices
The price of aviation turbine fuel (ATF) has soared to record highs in the past few years and
continues to hold at that level. Last few years haveonce again clearly highlighted the highly
cyclical nature of the Aviationindustry worldwide. ATF consumption has roughly doubled from
2002 to
2007
The ATF prices in India are substantially higher than its price ininternational markets. Aircraft
fuel is a major contributor to Air India
operating expenses.
Moreover, the bonded price applicable for international flights ex-India ishigher than the ATF
price in the international markets. Priced 65% higher in India on an average, compared to
international benchmarks. Therefore,this will need stronger revenue growth and greater cost
controls in other 
areas to overcome the increase in fuel prices.

64
High interest rates
The past few years have seen Central Banks impose higher interest rates
to check inflation and the over heating of regional economies. TheReserve Bank of India has led
the way raising interest rates. Inflation
fears in the India may see another raise in the short-term.
According to Economics times, the India real GDP growth is 9.20% in2007 to 9.00% in 2008
and this downward trend is also seen in 2009.This in turn could depress consumer spending and
offset some of the
 positive trends in the India for the company.

65
66
Findings

From the inception of air India the company is trying to improve its service for its customers.

Nowadays air India are one of the leading airline industries in India.

Major findings of this Air Indiaare:-

 The network of Air India services is often not sufficient to accommodate the demand on
the most frequented tourist routes.

 The actual frequency of flights to some important destinations, theseat capacity offered
and the operational standards have not always kept pace with the growth rate of air
traffic.

 There is a shortage of air conditioned limousines and buses.

 The equipment’s being used at present often does not meet the international standards.

 The rates and fares charged by Air India services are substantially high. In India, the rates
charged by airlines are roughly ten times the rates charged by railway from second class
passengers.

 It continuously work on improving the quality of its services

 It is the second largest airline industry of India and leading industry is still indigo

 They are trying to covering almost every destinations in India

 Their fares are according to the convince of the customers

 They provide extra facilities to the passengers with pets, disabilities etc.

 They have special medication facilities for emergency.

 In comparison to its competitor indigo Air Indiaemployees have less opportunity to grow
and because of this they are less motivated.

 Air India is headquartered in Mumbai and is India’s largest airline. India is one of the
most culturally rich travel destinations in the world, attracting more than six million
visitors each year.

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68
Suggestions

 Air India can increase Late bird / Night bird flights between metros.

 Air India should schedule more no of flights to and from station like Delhi, Mumbai,
Chennai, Collate, and Bangalore as these sectors account for high payload.

 Air India need to take aggressive Marketing.

 Air India should undertake customer satisfaction survey

 Air India should make provisions to add up more financial benefits for its passenger.

 Flight status should be made available through SMS and updated regularly

 New approaches should be identified and rewarded so that it set as an example for others.

Conclusion

After doing the study of the project representing on Air India, I have come to a conclusion that
Air India is one of the largest and most widespread airlines of the country providing its services
not only in India as well as outside India also. It has alliance with many other airlines in this
sector.

Air India offers a world class services to the customers at nominal rate. The national carrier takes
immense pride in having successfully played a pivotal role in making various facets of India
popular with the people of world and acting as the country’s cultural ambassador. The airline
uses the services of one of the advanced plans been operated in the world.

To sum up I would like to say that Air India Is serving its customers in an appreciated way and
going to be in the list of best services providers in coming years.

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BIBLOGRAPHY

https://en.wikipedia.org/wiki/Jet_Airways

https://economictimes.indiatimes.com › Industry › Transportation › Airlines / Aviation

www.moneycontrol.com/bse/shareholding/shp_promoters.php?sc_dispid=JA01

https://www.ndtv.com/business/stock/jet-airways-_jetairways/holdings

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