Presentation on: AIR INDIA

BUSINESS HISTORY
PRESENTED BY: ANUSHA, SHAMBHAVI, DIKSHA, MANISHA, ABHAY
 TABLE OF CONTENT
1. INTRODUCTION – (SHAMBHAVI)
2. PESTLE ANALYSIS – (ABHAY)
3. SWOT ANALYSIS – (DIKSHA)
4. CHALLANGES – (MANISHA)
5. PORTER’S ANALYSIS – (ANUSHA)
6. STP ANALYSIS – (SHAMBHAVI)
7. AWARDS AND RECOGNITIONS – (ABHAY)
8. MERGERS AND ACCQUISION – (DIKSHA)
9. STRATEGIES – (MANISHA)
10. CONCLUSION – (ANUSHA)
 INTRODUCTION

Founder
Ownership
Headquarters
Operations
Subsidiaries
Mascot & Logo
PESTLE ANALYSIS
 SWOT ANALYSIS
Strengths
• Air India owns the right to travel to 96 destinations all over the world.
• Financial support from government.
Weakness
• Poor utilization of capacity.
• Poor aircraft maintenance.
• Poor performance in terms of head cost controlling.
Opportunities
• Availability of highly skilled native born pilots at low cost.
• Gain more customers by providing high quality services.
Threats
• New entrants at domestic level.
• Increase in fuel prices.
 CHALLENGES

• Debt burden of 52,000 cr.

• In 2007, merger with Indian Airlines led to losses of 555 cr. In 2009-10.
• Purchased twice as many aeroplanes as market could support.
• Unable to pay staff salary as well which amounts to 27,000 cr.
• Under utilisation of human resource management.
PORTER’S ANALYSIS
Marketing strategy

 Segmenting-
 Targeting
 Positioning
AWARDS AND RECOGNITIONS
 Merge of Indian Air Lines with Air-India
 On July 15,2007 – Merger announced
 NACIL (National Aviation Company Of India Ltd) - A United corporation was formed.

Reasons for Merger

 To afford the escalating fuel costs.
 To with stand for the intense competition from the private and low cost air lines.
 To increase the no. of high class customers.
 To bare the additional costs of adopting new aircrafts.
 To face the instability and frequent changes in the management.
 STRATEGIES

• Strategic sale or sale through stock market

• Strategic sale is when private owners purchases a stake in PSU more or less
then 51% but contract of management will be in private owners and the
government.
• Stock market might not give good value.
 CONCLUSION

Why the government is trying to sell AIR INDIA?

Losses for six straight years.

Higher employee to air plane ratio.

To control VIP culture