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Strategic Management
SWOT Analysis
Air India at a Glance
Founded in 1932
Commenced Operations 29th July, 1946
Hub IGI Airport, Delhi
Secondary Hub CSI Airport, Mumbai
Alliance Star Alliance
Fleet size 104
Destinations 84
Company Slogan Your palace in the sky
Key People
Ashwani Lohani, Chairman
and MD
Revenue Rs. 197.81 billion
Employees 28,085
Evolution of
1932
1953
1960
2004
2007
2014
2016
Founded by
JRD Tata; First
air mail service
(Karachi-
Bombay)
GoI acquired
major stake
making it from
private to
public sector
orgazination
Purchased first
Boeing 707 and
entered the ‘Jet
Age’
Launched a low
cost subsidiary -
‘Air India Express’
connecting cities of
India with the
South East Asia.
Air India and
Indian Airlines
were merged
under Air India
Ltd.
Air India
becomes the 27th
member of the
STAR ALLIANCE
Operates
“World’s longest
All women crew
flight”
(14,500kms)
Source: Timeline - Air India Website (http://www.airindia.in/timeline)
Strengths
Largest air carrier in India in terms of traffic volume.
Strong backing by the government of India
Brand new fleet of aircraft
Maharaja’ as mascot
Flies to 84 destinations in India & Abroad
Connects remote destinations
Air India’s Mascot – ‘Maharajah’
Source: News article, The Huffington Post dated 15th June, 2016
Maharajah – Brainchild of Bobby Kooka and
Umesha Rao, 1946
Weaknesses
Financial crisis (domestic routes losses on 2/3)
Government intervention
Low Profitability
Low utilization of aircraft (resource)
Labour problems
Flight Delays and cancellations records
Source: Excerpts from Scroll.in online article dated 17th March, 2016
Financial Performance and Excerpts
• Airline keeps making
huge losses since it’s
merger in 2007.
• Total debt swells to Rs
50000 crore as of
2015.
• Air India pays almost
1/5th of its revenue as
employee pay and
benefits.
Opportunities
Changing consumer opinions including price consciousness
Expansion of routes and international destinations
Recent increase in GDP of India, growth of tourism
CAGR of India’s airline traffic best in the world (10.5%)
100% FDI allowed in Civil aviation sector
Changes in Civil Aviation Policy
• Maximum ticket price for a 30 minute flight cannot go beyond 1,300 and
a cap of 2500 for one hour flight.
• Cap on the cancellation fees.
• All flight tickets will be refundable, compensate higher.
• Excess baggage fee has been reduced from 300/kg to 100/kg.
• No airport charges to flight operators.
• 2% cess on regional flights has been scrapped.
• 5/20 rule to 0/20 rule.
Source: News article, The Logical Indian Newsletter dated 17th June, 2016
Key Takeaways from Civil Aviation Policy (Revised)
Threats
Extreme competition from Global airlines counterparts
Domestic ‘price wars’ affected fare structures
New changes in Civil Aviation Policy
Volatile nature of fuel costs
Poor track record compared to its competitors
New aviation rules giving edge to competitors
Source: Directorate General of Civil Aviation, Government of India Report (Economic Times)
Infographics – Air India among it’s peers
THANK YOU

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Air India - SWOT Anaysis

  • 2. Air India at a Glance Founded in 1932 Commenced Operations 29th July, 1946 Hub IGI Airport, Delhi Secondary Hub CSI Airport, Mumbai Alliance Star Alliance Fleet size 104 Destinations 84 Company Slogan Your palace in the sky Key People Ashwani Lohani, Chairman and MD Revenue Rs. 197.81 billion Employees 28,085
  • 3. Evolution of 1932 1953 1960 2004 2007 2014 2016 Founded by JRD Tata; First air mail service (Karachi- Bombay) GoI acquired major stake making it from private to public sector orgazination Purchased first Boeing 707 and entered the ‘Jet Age’ Launched a low cost subsidiary - ‘Air India Express’ connecting cities of India with the South East Asia. Air India and Indian Airlines were merged under Air India Ltd. Air India becomes the 27th member of the STAR ALLIANCE Operates “World’s longest All women crew flight” (14,500kms) Source: Timeline - Air India Website (http://www.airindia.in/timeline)
  • 4. Strengths Largest air carrier in India in terms of traffic volume. Strong backing by the government of India Brand new fleet of aircraft Maharaja’ as mascot Flies to 84 destinations in India & Abroad Connects remote destinations
  • 5. Air India’s Mascot – ‘Maharajah’ Source: News article, The Huffington Post dated 15th June, 2016 Maharajah – Brainchild of Bobby Kooka and Umesha Rao, 1946
  • 6. Weaknesses Financial crisis (domestic routes losses on 2/3) Government intervention Low Profitability Low utilization of aircraft (resource) Labour problems Flight Delays and cancellations records
  • 7. Source: Excerpts from Scroll.in online article dated 17th March, 2016 Financial Performance and Excerpts • Airline keeps making huge losses since it’s merger in 2007. • Total debt swells to Rs 50000 crore as of 2015. • Air India pays almost 1/5th of its revenue as employee pay and benefits.
  • 8. Opportunities Changing consumer opinions including price consciousness Expansion of routes and international destinations Recent increase in GDP of India, growth of tourism CAGR of India’s airline traffic best in the world (10.5%) 100% FDI allowed in Civil aviation sector Changes in Civil Aviation Policy
  • 9. • Maximum ticket price for a 30 minute flight cannot go beyond 1,300 and a cap of 2500 for one hour flight. • Cap on the cancellation fees. • All flight tickets will be refundable, compensate higher. • Excess baggage fee has been reduced from 300/kg to 100/kg. • No airport charges to flight operators. • 2% cess on regional flights has been scrapped. • 5/20 rule to 0/20 rule. Source: News article, The Logical Indian Newsletter dated 17th June, 2016 Key Takeaways from Civil Aviation Policy (Revised)
  • 10. Threats Extreme competition from Global airlines counterparts Domestic ‘price wars’ affected fare structures New changes in Civil Aviation Policy Volatile nature of fuel costs Poor track record compared to its competitors New aviation rules giving edge to competitors
  • 11. Source: Directorate General of Civil Aviation, Government of India Report (Economic Times) Infographics – Air India among it’s peers