Presented by: Anu Devassy

Background of Indian Aviation

The Civil aviation in INDIA Started on Feb 18th, 1911. The First domestic air route was between Karachi and Delhi was opened in December 1912...! First Indian airline, was owned by Tata Sons Ltd. Avation in India started on Oct,15 1932 , when a light single-engine plane took off. Tata Airlines converted into a Public Limited 29,1946 and renamed AIR INDIA Company on July

In 2006 Indian Aviation Industry was World

positioned 9th in

Brief about Air India

Tata Airline was converted into a Public Limited Company on July 29th 1946 and renamed as AIR INDIA. Air India was regd. as Air India International on March 8th 1948 and started its International operations. Air India became one of the most, talked about airlines in the world. Its sharing arrangements with other airlines offered passengers a wider network of routes to fly.

Air India
 Air India Limited is the National Flag carrier airline of India.  Air India is the 17th largest airline in Asia  Serves 28 destinations worldwide  Serves over 100 cities , with its affiliated carriers.  Air India is state-owned, and administered as part of the National Aviation Company of India Limited .

Brief about Indian Airlines / Indian

INDIAN AIRLINES was formed with the merger of eight (8) domestic airline services, while Air India International was to operate overseas services. It had a mixed fleet of 99 aircrafts. In Dec,2005 the 53 year-old Indian Airlines turned a new leaf when it was re-branded as Indian. It was given a complete image makeover-which included redesigning its crew uniform and its Logo The airline market share dipped to under 25%. The airline spent rs.45billion for the image makeover.

My Vision was to form a global airline . This merger will take the mega airline straight into the top 30 airlines with the precision and reliability of Lufthansa and the passenger service standards of Singapore Airlines will be formed . -Aviations Minister Praful Patel.

The idea first proposed 20years ago to merge two government owned air carriers- Indian Airlines & Air India, and it became a reality in 2007. On 22feb 2007 , a group of ministers approved the merger of state owned carriers, Air India & Indian to improve operational synergy and increase productivity. It had created the largest airline in the country with a fleet size of around 150. The entity arising out of the merger between Air India and Indian Airlines was called National Aviation Company Ltd. And its brand name was Air India. The brand logo the Maharaja continued to be Air Indias mascot. The Merger had also brought close to Rs.440 million of debt.

Factors Motivated to Merge.!

The merger was to help the new equity compete with large global airlines . The merger was viewed as a step in the right direction because it positioned Air India well with respect to rivals Jet and Kingfisher . Since Air India was a globally and nationally recognized brand name . Brand building became important as most players were offering similar fares on the same sectors. The AI-IA merger was expected to create one of the biggest airlines in the world in terms of the fleet size. The combined fleet size placed the merged entity among the top 10 airlines in Asia, and the top 30 in the world. It would also be India's first airline with more than 130 aircraft.

Cont
India was the fastest growing aviation market in the world, ahead of China, Indonesia and Thailand, as of early 2007. The number of people traveling by air had been increasing rapidly in the country. The main reason for this was thought to be the advent of low cost airlines like Air Deccan and Spice jet in the country in 2003-2004, which brought air travel within reach of India's large middle class. The entry of a number of new airlines had intensified the competition in the aviation sector by 2004.

Air India Express

On April29th 2007 Air India launched a new subsidiary airline AIR INDIA EXPRESS , Its International budget airline with attractively low fares.

Fleet of Air India

Market share of Airlines in 2009-10

According to sources, the airline industry has witnessed a dip of 4.9% in the number of passengers during January 2009 to July 2009. Private carrier Jet Airways and its low-cost carrier JetLite , with 26.3% market share, had the highest number of passengers during the period. Kingfisher came second with 23% market share and national carrier Air India third with 16.2%. In the case of low-cost air carriers, IndiGo's lead the market share with 14% while SpiceJet and GoAir coming second and third with 12.5% and 5.7% respectively. Paramount Airlines has a share of 2%.

Present Crisis
The combined losses for Air India and Indian Airlines in 2006-07 were Rs 7.7 billion. After the merger of the airlines, this went up to Rs 72 billion by March 2009. Increasing competition from private players :

Causes
Administrative Reasons
I. Complete lack of Ownership II. Deeply ingrained corruption in all levels. III. Everybody in the Government exploiting Air India. IV. Lot of interference form political powers. V. The head of Air India who are appointed may be good administrator but little exposure to global Air lines industry.

Market Environment
I. Increasing oil prices. II. Increasing competition .

Helping Strategies.
 Maximization of Connectivity to destinations abroad.

 Adoption of more effective CRM practices.  Advisory support from airlines like Lufthansa, Southwest Airlines.  Instead of Maintaining Different Models of Air Crafts, it should maintain only one Model, which simplifies Scheduling, maintenance, flight operations and training activities.  Corporate tie-ups will also help in Revenue Generation.