Air India PPT

PREPARIED BY:- SAKHIYA SAGAR SHUKLA KRUPA KAILA TULSI

AIR INDIA: BACK ON THE RUNWAY

CONTENTS:

HISTORY ESTABLISHMENT VISION MISSION AIR INDIA MAJOR HUBS SWOT ANALYSIS IMPLEMENTATION OF SAP ERP PACKAGE RECOMMENDATION CONCLUSION

HISTORY

Tata Airlines founded by JRD Tata in 1932 Tata Airlines nationalized as Air India International in 1946 Indian Airlines start operations in 1953 for domestic routes Air India enters Jet Age in 1960 with Boeing 707 Low cost airline Air India Express launched in 2005 Financial distress from 2005 Air India and Indian Airlines merged in 2007

ESTABLISHMENT

Tata Airlines Founder J.R.D Tata 15 October 1932 3 Seater De Havilland Puss Moth First Pilot - Nevill Vintcent First Flight

Karachi, Ahmedabad , Mumbai

IN 2007,

Air India and Indian Airlines merged into one airline, with its name remaining Air India. Air India is now a part of Star Alliance and is supposed to be joined by Alliance Air and Air India Express soon.

This is fact was the starting point of all the trouble.

WHAT WENT WRONG ??

10 Day Strike In 2011 –Flights Cancelled – Revenues Lost On Time Performance was below 80 % AI –IA Merger Happened In 2007 Intense Competition, Worsening Operational Performance

Massive Aircraft PURCHAES, ILL CONCEIVED Merger

TOTAL LOSSES – Rs 20000 Cr & DEBT BURDEN – Rs 43000 Cr

MR ROHIT NANDAN – “ No point in focusing on Market Share @ the cost of Profitability”…..

3 REASONS AIRLINES MERGE Additional revenue/assets

Increased connectivity and presence (size) lead to additional revenue – additional value from:

Larger carriers achieve a disproportionate share of revenue (S-Curve)

Better schedule optimization Less pricing competition

Improved operating efficiencies Strategic Acquisition

PRE AND POST MERGER PROFIT AND LOSS

VISION:-

To be among top five airlines in terms of Yield, profitability, Productivity, Size And Quality.

MISSION:- Focus on customer satisfaction Grow with emphasis on sustained profitability Focus on social responsibility – environment & community

HELPDESK PROBLEMS It provides a single point of contact for customers to receive

help on various issues. Problems with the help desk software . IT processes lack structure. The responses are late and thus leads to poor customer

support. Phone lines are mostly busy.

CONTINUE…

Lack of alternate communication channel. (email, web, phone, etc)

Long waiting time at customer care centers. Staff behavior Lack of accuracy and precision in solution to certain

problems

GOVERNMENT TURNAROUND STRATEGY

OF AIR INDIA

Bail Out plan for Rs.30000 cr – Rs. 5000 cr. as equity infusion and the balance as soft loan with long term repayment period and subsidized interest rate.

Improved defined work methods which could lead to substantial cost reductions

AIR INDIA MAJOR HUBS Chhatrapati Shivaji International Airport (Primary Hub) Indira Gandhi International Airport (Secondary Hub) Frankfurt Airport (International Hub)

REVENUE(ANNUAL INCOME):-

• HEAD YEAR REVENUE (Rs) in

crores• REVENUE 2010/11 14062

2011/12 14713

2012/13 17000

2013/14 19000 **- Projections

SWOT ANALYSIS

STRENGTHS

Has wide International presence in around 19 different countries.

Financial support of the government of India.

Well know in both domestic as well as international sector.

Up to date information system Equipped with New fleet of

aircrafts.

WEAKNESSES

Low profitability Presence of tough competition both in

the domestic as well as international segment.

Entry of Low cost carriers in the domestic segment.

Communication loopholes Financial issues causing delay in

payments to employees.

OPPORTUNITIES

Plugging the communication loopholes can help enhance its image and customer base.

Expansion of routes and international destinations. Can leverage on brand new fleets.

THREATS Rising labor costs Rising fuel costs. Losing market share due to other carriers. Labor Issues

IMPLEMENTATION OF SAP ERP PACKAGE

SAP is the largest provider of ERP solutions world-wide and has been preferred by more than 115 airlines.

SAP solutions support the core business of airlines in passenger services planning and development and also MRO (maintenance, repair and overhaul) functions.

The implementation of the SAP ERP package would help Air India in strategic decision-making, monitoring and control systems, the release said.

The airline could aim for improved profitability by availability of real-time information on route network and profitability,

IMPLEMENTATION ISSUES

Change in top management Delays Lack of Coordination Implementation Approach Data Issues

RECOMMENDATION

Well trained and informed staff. Increase in staff size and communication devices Improved transparent communication process.

CONTINUE…

100% refund. Credible information sources. Employee satisfaction. Improved internal communication

CONCLUSION

Winning customer’s trust can help Air India come out of the current financial crisis.

Organization must be well equipped in terms: staff, devices and information.

THANK YOU