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WHY AIR INDIA????
INTRODUCTION:
Today, together with its fully owned subsidiary Alliance Air, it is one
of the largest regional airline systems in Asia with a fleet of 62 aircraft
(4 wide bodied Airbus A300s, 41 fly-by-wire Airbus A320s, 11 Boeing
737s, 2 Dornier D-228 aircraft and 4 ATR-42).
Till 1991, IA was monopoly in Indian airways .
FOUNDER: JRD TATA
Under the air corporation Act of 1953, the
government
Nationalised the air transportation industry and
AIR INDIA INTERNATIONAL LIMITED was born.
MARKET SHARE :
 Air India was once the largest operator in the
Indian subcontinent with a market share of over
60%.
 Between September 2007 and May 2011, Air
India's domestic market share declined from 19.2%
to 14%, primarily because of stiff competition from
private Indian carriers.
2007-2011
From a monopoly position in the 1990s, Air India is
today fourth by way of market share (17 percent), has
a debt burden of a whopping Rs. 40,000 crore and
financial losses amounting to Rs. 5,551 crore in
2009-10. This is the worst it has ever been in its 79-
year history.
Around 2006-2007,the airlines began showing signs of
financial distress. The combined losses for Air India
and Indian Airlines in 2006-07 were 770 crore. After
merger the loss went upto 7200 crore.
AIR INDIA is facing a tight financial situation with a
debt of over 40k crore.
REASONS:
A Comptroller and Auditor General (CAG) report
from 2011 cited two important reasons for the
financial woes of Air India:
 An ill-considered merger with Indian Airlines
(February 2011)
 An order to purchase 50 medium and long-range
planes at a cost of about USD 7.2 billion, and 18
other planes for Air India charters (despite the lack
of budget).
Bad management and unreliably policies has bought
Air India crisis level.
Complete lack of ownership
Lack of responsiblility for results and failures .
Deeply ingrained corruption in all levels.
Strikes by pilots.
SWOT ANALYSIS:

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Indian airlines

  • 2. INTRODUCTION: Today, together with its fully owned subsidiary Alliance Air, it is one of the largest regional airline systems in Asia with a fleet of 62 aircraft (4 wide bodied Airbus A300s, 41 fly-by-wire Airbus A320s, 11 Boeing 737s, 2 Dornier D-228 aircraft and 4 ATR-42). Till 1991, IA was monopoly in Indian airways . FOUNDER: JRD TATA Under the air corporation Act of 1953, the government Nationalised the air transportation industry and AIR INDIA INTERNATIONAL LIMITED was born.
  • 3. MARKET SHARE :  Air India was once the largest operator in the Indian subcontinent with a market share of over 60%.  Between September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily because of stiff competition from private Indian carriers.
  • 4.
  • 6. From a monopoly position in the 1990s, Air India is today fourth by way of market share (17 percent), has a debt burden of a whopping Rs. 40,000 crore and financial losses amounting to Rs. 5,551 crore in 2009-10. This is the worst it has ever been in its 79- year history.
  • 7. Around 2006-2007,the airlines began showing signs of financial distress. The combined losses for Air India and Indian Airlines in 2006-07 were 770 crore. After merger the loss went upto 7200 crore. AIR INDIA is facing a tight financial situation with a debt of over 40k crore.
  • 8. REASONS: A Comptroller and Auditor General (CAG) report from 2011 cited two important reasons for the financial woes of Air India:  An ill-considered merger with Indian Airlines (February 2011)  An order to purchase 50 medium and long-range planes at a cost of about USD 7.2 billion, and 18 other planes for Air India charters (despite the lack of budget).
  • 9. Bad management and unreliably policies has bought Air India crisis level. Complete lack of ownership Lack of responsiblility for results and failures . Deeply ingrained corruption in all levels. Strikes by pilots.