Air India merged with Indian Airlines in 2007, creating a large airline with 30,000 employees but management and labor issues. It struggled with high taxes, low fares, and supply and demand gaps. Regular losses and debt led the government to try selling 76% stake but the sale failed. A new plan is for the government to sell 100% stake and transfer 30,000 crore rupees, while working on foreign investment rules to attract buyers for the struggling national carrier.

1. A Case Study on Air India
By Hardik.J.Bhandari

2. Introduction

5. Merger of Air India and
Indian Air Lines
 Total numbers of
employees 30000
 No one can Fire any of the
employees due to worker
Union.
 Work ethics were difference

6. Reasons for failure of
Aviation
 High Taxes
 Low Fairs
 Supply and Demand gap
 Strict Government Rules

7. Reasons of sales of Air India
 Not performing well
 Regular Losses
 Management Issues
 Conflict after mergers of
Air India and Indian

8. Reasons why Air India in not sold
 Only 76% stake not sold
 Debt of Air India
 Foreign Investment
New Plan
 100% stake
 30000cr Transfer
 Government is working on Foreign
Investment.

9. Learning's form the case
 Planning need to be according demand and
supply.
 Need to keep a watch on what our competitors
next step.
 Human Resource is one of the Important Factor
in the Organization.

10. Suggestion
 Out of 370 flights only 9 flights are profitable.
 Lease flights which are been not use frequently
 VRS for the employees

11. Thank-you