stm

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STM PROJECT
TITLE: AIR INDIA
SUBMITTED BY: GROUP-5
Soumya Shefalika Dash (21202119)
Soumyashree Panda (21202121)
Prajjwal Deb (21202097)
Mudra Mohanty (21202092)
Sushmita Samanta (21202131)
Ishan Kumar Rath (21202084)

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TABLE OF CONTENTS:
INTRODUCTION.....................................................................................................................3
FINANCIAL PERFORMANCE ..............................................................................................4
UNIQUE/ DISTINCTIVE ASPECT ........................................................................................4
PROBLEMS FACED BY AIR INDIA.....................................................................................5
ELABORATION OF THE PROBLEMS.................................................................................5

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INTRODUCTION
Air India is the flagship carrier airline of India headquartered in New Delhi and has been one of
India’s largest air carriers since India’s airline history ever started it has been owned by Tata Sons
Private Limited group for about six months now but on several locations has been on by the Indian
government for more than three decades at a stretch. Currently, it has an international market share
of 18.6% in India which over 60 international destinations served over four continents and is a
member of the star alliance as of 11 July 2014. After going through several iterations throughout
its history currently air India is a combination of the merger of Indian airlines which used to be
old India’s domestic airline carrier and year India which has the international for now all together
called air India and is owned by JRD Tata group as of the moment.
Mission Statement:
“To deliver the highest quality of service around the world and be the epitome of Indian hospitality
and to be India's flag carrier and provide seamless travel within India and the world.”
As has been noted throughout the history of air India, the tagline of the year India has been “truly
Indian” which demonstrates Air India’s mission of showing the epitome of Indian hospitality
following the theory of “Atithi Devo Bhava” that India treats its cast as gods and that is exactly
what year India strives to do and has been an ideology that Indian air India has tried to follow since
many decades now privatized under Tata group continues to follow the same ideology with a
profit-making strategy.
Vision Statement:
“To create an eco-system to enable 30 crores domestic ticketing by 2022 and 50 crores by 2027.”
To be India’s first name on mouth airline and battle against the biggest airlines of the world and
increase the brand value to the likes of the private airlines (Etihad, Emirates, Lufthansa, etc.).
The vision has now been changed, to meet the goals and ambitions of the tata group which owns
Air India now.
Product and Services:
 On every flight operated by Air India, complimentary refreshments and meals are provided.
 Indian or continental cuisine is available. For our foreign flights, we serve non-vegetarian food.
 Wine and spirits will be provided at no charge on all of our foreign flights.
 Properly positioned movie screens for a cinematic viewing experience.
 Choice of meals.
 Improved temperature control and lighting systems.

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Geographic Territories:
A total of 102 destinations are served by Air India, comprising 57 domestic and 45 international
locations spread over 31 nations and five continents. Indira Gandhi International Airport in New
Delhi serves as its main hub, and Chhatrapati Shivaji Maharaj International Airport in Mumbai
serves as its secondary hub.
Indian Airlines House in New Delhi is where Air India Limited is headquartered. In 2013, Air
India relocated its corporate headquarters from Mumbai's Air India Building to Delhi. The 1993
Bombay bombings included the old headquarters, a 23-story structure on Marine Drive, as one of
their objectives. Air India Charters initially owned Air India Express, which launched its
operations on April 29, 2005. It runs flights from South India to Southeast Asia and the Middle
East.
FINANCIAL PERFORMANCE
 Total revenue decreased from Rs. 285,244.4 Million in 2019-20 to Rs. 121,040.5 Million in
2020-21 (decrease of Rs.164,203.9 Million)
 Operating Revenue decreased from Rs.277,106.1 Million in 2019-20 to Rs.103,433.0 Million
during 2020-21 (decrease of Rs.173,673.1 Million)
 Total Revenue decreased from Rs.328,306.2 Million in 2019-20 to Rs.134,064.9 Million
during
2020-21, a decrease of 59.2%
UNIQUE/ DISTINCTIVE ASPECT
The first of two Boeing 777 planes that will transport the Prime Minister, Vice-President, and
President on official trips abroad has been delivered to Air India. The plane is outfitted with anti-
missile defenses. Due to its features, Air India One can now compete with the presidential aircraft
Air Force One. Some of the more unique features of Air India are:
 Radar warning receivers- When Air India One detects a missile, a fighter-style audible alert
will sound in the cockpit.
 Missile Approach Warning System-It recognizes incoming missiles and alerts the pilot to
make a protective move.
 Flares and Chaff- Heat-sensitive or heat-seeking missiles are fooled by flares, which are high-
temperature heat sources thrown by aircraft.
 Intruder Detection System- An intrusion detection system (IDS) examines all incoming and
outgoing network traffic to spot any unusual patterns that might point to a system or network
attack by an intruder trying to access or compromise a system.
 Automatic External Defibrillator- An automated external defibrillator (AED) is a portable
device that automatically identifies ventricular fibrillation and ventricular tachycardia in
patients, both of which are life-threatening cardiac arrhythmias.

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PROBLEMS FACED BY AIR INDIA
1. Inability to offer to direct non-stop flights from major growth centers
2. Forced (failed) marriage between Air India and Indian Airlines
3. Inability to Face Change
4. Lack of professional management
ELABORATION OF THE PROBLEMS
1. Inability to offer direct non-stop flights from major growth centers:
For instance, Air India compelled travelers traveling from Bengaluru to the US or Kerala to the
Middle East to pass through Mumbai/Delhi, increasing travel duration by 8 to 16 hours. Air India
only operated a small number of such trips because its crew and engineering bases were in Mumbai
before Air India Express began offering direct flights from the South to the Middle East.
2. Forced (failed) marriage between Air India and Indian Airlines:
The merger of former Air India and Indian Airlines, even though both carriers are opposed, was
the primary cause of this airline's demise. The two companies differed greatly in terms of work
culture, areas of operation, compensation, working conditions, entitlements, and so on. The merger
caused widespread dissatisfaction and frustration among the employees. The subsequent demerger
of ground handling and engineering firms exacerbated the issues. In retrospect, a no-merger
scenario appears to have been preferable. Otherwise, it would have been preferable if the issues
(related to the merger) had not lingered for so long. Air India, on the other hand, is committed to
resolving all outstanding issues as soon as possible and continuously improving the services
provided to passengers. On top of that, the airline was asked to purchase aircraft, which resulted
in a massive debt on its books.
The merger of Air India and Indian Airlines has only existed on paper. The public sector airlines
merged in 2006-07 to improve resource synergies, but resources, aircraft, men, materials, and
machines remained divided. There were no collaborations. Without layoffs, the merger simply
exacerbated issues such as excess manpower. Even after their marriage, Air India, Indian Airlines,
and Air India Express maintained separate kitchens.
Before 2005, Air India made a profit of Rs 15 crore per year, and Indian Airlines made a profit of
Rs 50 crore. "These airlines were forced to purchase 111 aircraft at a cost of around Rs 55,000
crore, putting the national carrier in deep debt," Scindia said. The liberalization of bilateral rights
at a time when Indian airlines could not fulfill it resulted in a daily loss of Rs 20 crore.
The total loss over the last 14 years has reached Rs 85,000 crore. The government had spent Rs
54,000 crore on equity, Rs 50,000 crore on grants to the airline, and Rs 66,000 crore on net debt,
leaving Air India facing a Rs 2.5 lakh crore chasm."

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3. Inability to Face Change:
After 2005, the airline industry underwent liberalization, which meant all egregious monopoly-era
waste had to end. The lack of a proactive management approach meant that Air India was ill-
prepared to handle the difficulties of liberalization.
Things got worse because of poor financial management, a lack of customer attention, and the
haughtiness of unionized workers.
4. Lack of professional management:
There was no continuity or accountability of top leadership. The IAS babus appointed to run Air
India have little aviation experience and generally fail to recognize that aircraft capacity and fares
must be aligned with trade winds.
Air India was a Navratna Company. However, from 1994 to 1999, it went from being a profitable
airline to reporting staggering losses, resulting in the depletion of its reserves.
During this time, Air India's CMDs only pursued their own goals: handsome increases in flying
"shortfall allowance" for their clan, generous incentives for AMEs, backdated incentive deals with
GSAs (general sales agents) in London, and so on.
Air India invested in the entire aviation value chain during its golden years, beginning with aircraft
maintenance with Boeing in Nagpur, cabin catering through a subsidiary (Chef air), establishing
Centaur Hotels at Santacruz Airport and Juhu, and investing in GHA (ground handling agency) at
many airports. These assets were poorly managed.