AIR INDIA

• The airline was founded by J.R.D. Tata as airlines in

1932.
• Tata himself flew its first single engine ”de Havilland
puss math” Carrying air mail from Karachi to Bombay's
juju aerodrome and later continuing to madras.
• founded: 15 October 1932
• Commenced operations: 29 July 1946
• Hubs- Indira Gandhi international airport (Delhi)
• Secondary hubs- Chhatrapati shivaji international
airport (Mumbai)
• Alliance –star alliance
• Subsidiaries - air India express, alliance air
• Destinations- 94
• Parent company - air India limited
• HQ- New Delhi
• Chairman & MD- Ashwani lohani
• Competitor- jet airways
 Reason for losses
• Merger of Indian airlines in 2007 loss both
770cr.
• Total employees more than 3000 after merger
• Not Market leader
• Business continue with loss out of 370 flights
120 move to another country, six route
profitable it means three international, six
domestic routes
• By march 2011 air India had accumulated a debt
of rs 425.7 billion and an operating loss of rs 220
billion.
• The airline shut down the Frankfurt hub on 30
October 2010 because of high operating costs.
• In may 2012 the airlines was fined $80000 by u.s.
transportation department for failing to post
customer service and tarmac delay contingency
plans on its website and adequately inform
passengers about its optional fees.
 Sinking reason
Privatise airlines account for around 75% share of
the domestic aviation market.
Airlines industry in India is plagued with several
problems. Some are:
• High aviation turbine fuel prices.
• Rising labour costs and shortage of skilled labour.
• Rapid fleet expansion.
• Infrastructure constraint/ poor maintenance.
 The poor merger story
The merger was approved in 2007 and the
merged body was called the national aviation
company of India limited (NACIL).
At does not have the ability to compete with
the private sector.
• Slow and painful merger
• Continuous share fall.
• Fear of substantial job losses.
Corporate vision of air India
To be in the top 5 airlines of Asia, in terms of
yield, profitability, productivity, service, quality
and size.
Mission statements
• focus on customer satisfaction
• Growth with emphasis on sustained profitability
• Focus on social responsibility- environment &
community
 Organizational culture

From the past three years, air-India is yielding

continuous losses, but they have implemented a
strategy to overcome these hard times.the
causes for this situation are, poor handling of
resources and lack of good relationship with the
staff and workers.
Before two years a strike was announced against
the management, which further drags the
company into losses. So the improper functioning
of organisation culture is the major issue.
• As air India was operating its sub hubs in
London and Frankfurt, but the management in
the hubs are Indians.
• Although the Indian management in the other
countries is skilful, the persons with local
knowledge are required for the efficient
handling of local issues.
• So some cultural changes needed for air India
to handle the international issues.
 Pestl analysis
• Political factors:- the political situation in a
country may influence the minds of the air
travelers. the unstable political conditions in
India, creating an ambiguity in the minds of the
passengers, travelling to India. it affect air India
indirectly.
• Economic factors:- due to the financial recession
in recent year, people are thinking that air travel
is luxury and expensive. So a considerable decline
in the no. of passengers occurred, which in turn
leads to reduce in ticket prices.
• Social factors:- as India as multi cultured
country, the passengers may come from
various religions and expects more
customization, for example a Brahmin
customer will be satisfied, when the
passenger, just beside him also a Brahmin, at
least a vegetarian. So he expects change of
seats can be possible.
• Technological factors:-many of the international
air lines are providing internet access for their
business class passengers this service has a poor
performance in air India, which may make the
business class customers to choose other air
lines, who pays more for the company.
• Legal factors:- in order to get licences and route
clearances the company has to undergo to the
govt processes, starting from aviation minister
and involving many legal issues.
 Air India profit loss
• In 2017-2018 the airline had earned a
revenue of rs. 23000 cr. But a year later, it
incurred a loss of about rs 4000 cr. Adding to
the 50000 cr. Debt it already had.
• In 2018-19 our revenue was rs 25000 cr. But
the expenses range around rs 29000 cr.
Thank you