Company ProfileAir India Limited is the national flag carrier airline of India, flying a worldwide network ofpassenger and cargo services. Air India is state-owned, and administered as part of the National Aviation Company of India Limited - which was created in 2007 to facilitate Air India's merger with Indian Airlines. The main bases of operation of the airline are Mumbai's Chhatrapati Shivaji International Airport and Delhi's Indira Gandhi International Airport. Air India is the 16th largest airline in Asia, serving 28 destinations worldwide, and, with its affiliated carriers, serves over 100 cities. Air India has codeshare agreements with twelve other international airlines. In 2010, Air India is expected to join Star Alliance, the world's largest airline alliance
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Air India Limited is the national flag carrier airline of India, flying a worldwide network of
passenger and cargo services. Air India is state-owned, and administered as part of the National
Aviation Company of India Limited - which was created in 2007 to facilitate Air India's merger
with Indian Airlines. The main bases of operation of the airline are Mumbai's Chhatrapati ShivajiInternational Airport and Delhi's Indira Gandhi International Airport.
Air India is the 16th largest airline in Asia, serving 28 destinations worldwide, and, with its
affiliated carriers, serves over 100 cities. Air India has codeshare agreements with twelve other
international airlines. In 2010, Air India is expected to join Star Alliance, the world's largest
The Government of India exercised its option to purchase a majority stake in the carrier and Air
India International Limited was born as one of the fruits of the Air Corporations Act that
nationalised the air transportation industry. At the same time all domestic services were
transferred to Indian Airlines (now renamed as Indian).
1954
The airline took delivery of its first L-1049 Super Constellations and inaugurated services to
Bangkok, Hong Kong, Tokyo and Singapore.
1960
Air India International entered the jet age when its first Boeing 707-420, named Gauri Shankar
(registered VT-DJJ), was delivered. Jet services to New York City via London were inaugurated
that same year on 14 May 1960. On 8 June 1962, the airline's name was officially truncated toAir India. On 11 June 1962, Air India became the world's first all-jet airline.
1971
Tthe airline took delivery of its first Boeing 747-200B named Emperor Ashoka (registered VT-
EBD).
(Boeing 747-200B at Montréal-Mirabel International Airport in 1983)
Merger with Indian Airlinesthe Government of India announced that Air India would be merged with Indian Airlines. As
part of the merger process, a new company called the National Aviation Company of India
Limited (NACIL) was established, into which both Air India (along with Air India Express) and
Indian Airlines (along with Alliance Air) will be merged.
On 27 February 2011, Air India and Indian Airlines merged along with their subsidiaries to form
Air India Limited.
(Old Air India Logo From 1940-2007)
Financial Problems faced by Air India.
Air India is working on plans to reduce its expenditure on employees by Rs 500 crore per annum,with a newly formed Committee re-examining wage and other agreements in consultation with
the Unions. The cash-strapped airline's employee cost currently is over Rs 3,000 crore annually,
a company spokesperson said, adding that the airline was now targetting a reduction in employeecost to the tune of Rs 500 crore per annum. At present, the merged carrier has around 31,000
employees. Unprecedented liquidity crunch, high oil prices, widespread economic gloom,
declining passenger traffic, skills shortage, and overcapacity are squeezing the life out of India'sstate-run flagship airline.Air India has one of the highest number of employees per aircraft.
Media reports say that Air India is losing Rs 14-15 crore every day due to declining passenger
traffic and low airfares vis a vis the airline's costs.Airline industry observers say that Air India is
the victim of mismanagement and extravagance that have pummelled the airline into the mouth
of near-bankruptcy and disrepair. Experts say that management failure coupled with somepolitical interference has been the root cause of the abysmal performance of the airline.Also, as
cost pressures mount and labour productivity remains low, Air India is finding it difficult to
compete with the private carriers. Even private airlines, despite their management skills, feweremployees per aircraft and low air fares are fighting for survival as global recession plunges the
The Boeing customer code for Air India is 37, meaning a model name of, for example, a 747-437(an Air India 747-400). As of May 2010, the average age of the Air India fleet is 9.5 years.
New aircraft orders
On 11 January 2006, Air India announced an order for fifty eight jets - eight Boeing 777-
200LR Worldliners, twenty-three Boeing 777-300ER and twenty seven Boeing 787-8
Dreamliners
The airlines received its first Boeing 777-200LR aircraft on 26 July 2007 and Boeing777-300ER on 10 October 2007.
In April 2010, the airline has orderd three Boeing 777-300Ers.
Air India expects to get its first Boeing 787 Dreamliner by December 2011
Retired fleet’s of Air India
Airbus A300B4-203
Three new Airbus A300B4-203 were operated from 1982 until 2002, one other wasleased during 1994.
Boeing 707-420
Six different Rolls-Royce Conway 508 powered Boeing 707-420s entered service from1960 for use on international routes. One aircraft VT-DMN was destroyed operating Air
India Flight 101 and the others were retired and sold in the early 1980s.
Boeing 707-320B
Three new Boeing 707-320Bs were operated between 1964 until retired in 1988.
Boeing 707-320C
Two new Boeing 707-320Cs were operated between 1967 and 1987. Two other aircraft
were leased, one between March 1976 and November 1977 from Sabena and one
Ethiopian Airlines aircraft between December 1976 and April 1981.
Boeing 747-200B
Eleven new Boeing 747-200s were operated as the mainstay of the international fleet
from 1971 replacing the Boeing 707, the last one was retired in 2003. The fleet was
supplemented by a second-hand aircraft in 1987. Three were lost in accidents, VT-EBD -destroyed operating Air India Flight 855 on 1 January 1978, VT-EBO - destroyed
operating Air India Flight 132 on 7 May 1990, and VT-EFO which was destroyed on 23
June 1985 operating Air India Flight 182.
Boeing 747-300M
Two Boeing 747-300Ms were operated between 1988 and 2007.
A Boeing 747-400M passenger/freighter variant (with a large cargo door) was operatedbetween 2005 and 2008.
Boeing 757-200
One Boeing 757-200 was leased from Golden International Airlines between 1 June and1 October 2007.
Boeing 767-300ER
Three Boeing 767s were leased (one for EuroAtlantic Airways and two fromFlyglobespan) during 2007 and 2008.
Boeing 777-200ER
Three Boeing 777-200ERs were used between 2004 and 2010.
Ilyushin Il-62
One Ilyushin Il-62 was leased from Aeroflot in 1987.
Lockheed L-749 Constellation
Three Lockheed L-749 Constellations were operated, one (VT-CQP) was lost operatingAir India Flight 245. Four Lockheed L-749A Constellation were operated, one crashed inthe Pacific Ocean.
L-1049C Super Constellation
Two Lockheed L-1049C Super Constellations and three Lockheed L-1049E Super
Constellations were operated. Five Lockheed L-1049G Super Constellations wereoperated from the 1950s.
Lockheed L-1011 TriStar
Two Lockheed Tristar 500s were leased from December 1995 until September 1996.
Air India Cargo Former Fleet
Boeing 747-200
Two Boeing 747-200F were leased to operate cargo services between 1986 and 1988.
McDonnell Douglas DC-8
Eleven different Douglas DC-8F have been leased to operate cargo services.
Streamline Operations: Making sure that processes are as simple as possible
Lean Distribution System: Offering a wide and innovative range of distribution channels
to make booking and travelling easier.
Subsidiary Companies
Air India has the following Subsidiary Companies.
(a) Hotel Corporation of India.
(b) Air India Charters Ltd.(c) Air India Air Transport Services Ltd.
(d) Air India Engineering Services Ltd.
(e) Airline Allied Services Limited (AASL)
(f) Vayudoot Limited
Subsidiary Companies
HCI(Hotel Corporation of India Ltd).
Centaur Hotels at Juhu, Mumbai Airport and Rajgir Sold. Centaur Hotel at Delhi, Chefair-New Delhi and Chefair-Mumbai.
AICL(Air India Charters Ltd) New Airline Air India Express set-up under AICL
All AI Express operations carried out on B-737-800 with a current fleet strength of 12.
AIATSL (Air India Air Transport Services Ltd)
Incorporated in June 2003
Set up to undertake ground handling & other allied activities Being operationalized at all domestic airports
AIESL (Air India Engineering Services Ltd)
Incorporated to undertake engineering and other allied activities
To be operationalized
Airline Allied Services Limited (AASL)
Established in 1983, this company provides support services to Indian Airlines such as airtransport services and manage airplane purchase, lease and sale transactions
Vayudoot Limited Established on 20 January 1981 as a joint-venture between the two state-owned
carriers, Indian Airlinesand Air India. The airline was originally conceived to serve the Northeastern region of India where the
surface transport facilities were inadequate and surface routes were circuitous.
The logo of the new airline is a red coloured flying swan with the `Konark Chakra' in orange,
placed inside it. The flying swan had been morphed from Air India's characteristic logo, `TheCentaur', whereas the `Konark Chakra' was reminiscent of Indian's logo”.
The new logo would feature prominently on the tail of the aircraft. While the aircraft will be
ivory in colour, the base will retain the red streak of Air India. Running parallel to each other
will be the orange and red speed lines from front door to the rear door, subtly signifying the
individual identities merged into one. The brand name `Air India' will run across the tail of theaircraft.
Air India Mascot: Maharaj
We call him a Maharajah for want of a better description. But his blood isn't blue. He may look like royalty, but he isn't royal.' These are the words of Bobby Kooka, the man who conceived the
Maharajah. This now familiar lovable figure first made his appearance in Air India way back in1946, when Bobby Kooka as Air India's Commercial Director and Umesh Rao, an artist with
J.Walter Thompson Ltd., Mumbai, together created the Maharajah.
The Maharajah began merely as a rich Indian potentate, symbolizing graciousness and high
living. And somewhere along the line his creators gave him a distinctive personality: his outsizedmoustache, the striped turban and his aquiline nose.
What began as an attempt as a design for an inflight memo pad grew to take Air India's sales and
promotional messages to millions of travellers across the world. Today, this naughty diminutiveMaharajah of Air India has become a world figure. He can be a lover boy in Paris, a sumo
wrestler in Tokyo, a pavement artist, a Red Indian, a monk... he can effortlessly flirt with thebeauties of the world. And most importantly, he can get away with it all. Simply because he is
the Maharajah! He has completed 56 years and become the most recognizable mascot the world
over. His antics, his expressions, his puns have allowed Air India to promote its services with aunique panache and an unmatched sense of subtle humour. In fact he has won numerous national
and international awards for Air India for humour and originality in publicity. And as with all
great men, he too has had his critics. But the millions of travellers whose lives he has touched far
outnumber them. In fact, to them, the Maharajah with his inimitable style, charm and wit is avery real person. He's almost like a friend to every Air India traveller. A friend who reaches out
with warmth and hospitality, even to the farthest corners of the world.
Air India has a Frequent Flyer Programme branded "Flying Returns”. Members of the Flying
Returns Programme (FRP), the most attractive FRP for the Indian traveller, can accrue mileage
points while flying on Air India, Lufthansa and flights of Air India’s code share partners, and
redeem them for award tickets on Air India or Lufthansa. Through tie-ups with
leading hospitality-associated organisations in India, members can earn additional mileage points
to redeem their tickets faster. "Flying Returns" has a membership of nearly 6,00,000 in India, the
Gulf, UK, USA, Canada and South-East Asia.
Star Alliance
With a quantum jump in product profile resulting from induction of new aircraft and consequent
expansion of network, Air India will be all set to join the Star Alliance by middle of 2010. StarAlliance, is a leading global airline alliance of 21 top international carriers. Once Air India
becomes a member, passengers will enjoy enormous benefits, including seamless transfers while
travelling across the world, more frequent flyer mileage points, code-sharing leading to a wider
choice of flights and access to lounge facilities worldwide. The Star Alliance network offers
more than 17,000 daily flights to 916 destinations in 160 countries.
Dining
Dining aboard Air India is a gourmet experience. The airline offers a choice of menus to suit all
types of palates - Indian and Continental. Apart from these, there is western nouvelle cuisine, anappetizing choice of Asian specialities, and even Japanese meals on the India-Japan route.
Besides, if any passenger has a special food requirement, he can choose from any of the 23
special meals, details of which are also available on the website http://www.airindia.in. The meal
preference can also be intimated through the travel agent while making reservation. The menus
are constantly revamped and the wines carried on board live up to the food they complement!
Meals are served to First Class passengers in bone china crockery. Alcoholic beverages are
served complimentary in all classes.
Inflight Entertainment The selection of music on board Air India aircraft would be the envy of any radio station.Passengers can choose from Indian popular music, Indian Classical, Ghazals, Bollywood hits and
from Western Classical, Pop, Jazz, Country and Nostalgia. A special channel for Regional songs
has been compiled to suit all passengers coming from different regions. A Japanese channel is
available for our Japanese passengers. Air India's video programmes include a choice of the mostrecent English and Hindi feature films. One-hour video magazine represents the finest in
comedy, nature & wildlife, adventure, action and life style. There are special movies in Tamil
and Malayalam selected for passengers travelling from Thiruvananthapuram, Kochi, Kozhikode
and Chennai to the Gulf and Singapore.
Facilities on the Ground
Besides the much-talked about and appreciated inflight service on board, ground facilities havealso been upgraded. Air India's lounge for transit passengers at Mumbai Airport is equipped with
shower facilities, specially designed slumberettes, Wi-Fi, a gymnasium and a business centre.
First and Executive Class passengers can surf the net or send e-mail in the comfort of our
business centre located in the Maharajah Lounge while waiting for their flight to depart. There is
a lounge for unaccompanied minors as well. Air India has its own exclusive lounges at Delhi,
London, Hong Kong and New York in addition to the one in Mumbai. At other international
airports, Air India has tie-ups with other international airlines or local Airports Authorities for
lounge facility.
Speedy Message Service (SMS)
Users of Indian mobile telephones travelling from Indian stations are requested to provide their
mobile numbers at the time of making their reservations to enable us to inform you by SMS in
case your flight out of India is rescheduled within four days prior to departure. First and
Executive Class passengers departing from Mumbai and Delhi airports can tele-check-in. A
separate entry has been created for First and Executive Class passengers travelling from
Mumbai. Several changes have been introduced at Mumbai and Delhi airports with the intent of
streamlining airport procedures and enhancing efficiency to make Economy Class passengers'
experience, from check-in to boarding of aircraft, absolutely hassle-free. The measures include
additional X-ray machines, floor walkers in check-in area, the formation of a telephone enquirycell and more efficient communications between various sections of the airport.
Advance Check-in
Passengers can take advantage of the advance check-in facility that is available at the airport andcity office for the convenience of all passengers (including First, Executive and Economy
Classes) travelling from Mumbai to the US, the UK and Europe. While First and Executive Class
passengers can then report to the airport with their hand baggage just 45 minutes prior to the
departure of the flight, Economy Class passengers are required to check-in only 90 minutesbefore scheduled departure time.
Premium loungesThe Maharaja Lounge (English: "Emperor's Lounge") is offered to First and Business classpassengers. Air India shares lounges with other international airlines at international airports that
do not have a Maharaja Lounge available. There are five Maharaja Lounges, one at each of the
five major destinations of Air India, which are as following:
Air India was conferred the ‘Best West Bound Airline from India’ award at the Galileo
Express Travel and Tourism awards 2005 function held in Mumbai on 7 December
2005.
The ‘Most preferred Brand’ Award in the international airlines category by CNBC
AWAAZ, a leading Hindi business television channel, was presented to Air India at the
AWAAZ consumer awards 2006 function held in New Delhi on 18 July 2006.
Reader’s Digest Trusted Brand Gold’ Award was presented to Air India at a function
held in Mumbai on 18 May 2006.
Air India's security department became the first aviation security organisation in the
world to acquire ISO 9002 certification (31 January 2001).
Air India's Department of Engineering has obtained the ISO 9002 for its Engineering
facilities for meeting international standards. Air India has also decided to discontinue the 40% discount scheme for employees and
their families for domestic travel more than once a year. According to an insider, over3,000 Nacil executives are entitled to the discounted fares. The source added there couldalso be future curbs on international business travel. Menon is also considering a schemewhereby 1,000 non-operational staff could take a sabbatical of between two and five
years.
On January 1 this year, Air India had circulated a 25-point circular to senior officers onvarious cost-saving measures. They include payment of fuel reimbursement strictly
through vouchers, abolition of children’s education allowance to officers posted abroad,reducing the cost of residential furnishing for EDs and GMs, and restricting foreign
LH to provide AI commercially viable slots at Frankfurt
Air India developing relationship with other Star Alliance partners – United Airlines & Air Canada.
Will continue existing code shares with existing 14 airline partners & pursue such
relationships with other airlines. Becoming a full-fledged member of a global alliance in 2011 Staff costs constitutes nearly 19% of Air India's total cost. Many efforts were made to
Air India has been the largest air carrier in India in terms of traffic volume and company
assets. It owns the most updated fleet and competent repairs and maintenance expertise.
Its information systems are advanced and compatible with its operation and service.
It has a good reputation in both international and domestic markets, quality service andthe age-old Goodwill that has still kept it alive in the interests of the rescue operators.
Has financial backing of the Government.
Strong Brand Image Due to growth in tourism, there has been an increase in number of the international and
domestic passengers. The estimated growth of domestic passenger segment is at 50% per
annum and growth for international passenger segment is 25%
Due to the rise in income levels, the disposable income is also higher which are expected
to enhance the number of flyers.
Weaknesses of AIR INDIA
Air India is operating across broad international and domestic markets competing with
world leading giant airlines as well as local small operators. This lack of clarity on the
strategic direction largely dilutes its capabilities and confuses its brand within markets. Low profitability and utilization of capacity.
Established Competitors
Inefficient usage of resources Less advertising
Growing Competitor base and entry of Low-Cost Carriers (LCC’s)
The airline’s high-cost structure and the compulsions of being a public sector unit are the
reasons and it had been making a loss and shall continue to make losses for some morequarters.
Opportunities of AIR INDIA
India airline industry is growing faster and will continue to grow as the GDP increases,and the trend is predicted to continue once the slowdown recedes.
Very little fare difference between upper class railway and low cost airline
Economic Growth
Brand image of Air India is stronger for foreigners
Tie-ups with large Corporate Worldwide deregulations make the skies more accessible; the route agreement is easier to
be achieved. The number of foreign visitors and investors to India is increasing rapidly.