You are on page 1of 27

AIR INDIA: BACK ON THE

RUNWAY
PREPARIED BY:SAKHIYA SAGAR
SHUKLA KRUPA
KAILA TULSI

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


REVENUE
2010/11
14062
2011/12
2012/13

14713
17000

2013/14
19000 *
*- Projections

crores

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 customers 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

You might also like