Air India was founded in 1932 by JRD Tata as Tata Airlines. It became a public company called Air India in 1946. In 1960, Air India flew its first international flight to New York. By 1962 it had become the world's first all-jet airline. In 2007, Indian Airlines merged with Air India. Currently, Air India is facing major financial troubles with a debt of over Rs. 40,000 crore and annual losses of Rs. 5,000 crore due to factors such as poor management, union strikes, and the decision to purchase 111 new planes. The government is implementing a turnaround plan including an equity infusion and loan to revive the airline.

2. History
• Founder
• Air transport
was born in
India on
February 18,
1911
Mr. J R D Tata

3. Company Perspectives
• Air-India is India's finest flying Ambassador.
The do to excel and the enthusiasm which
characterized Air-India's first flight way back
on October 15, 1932 is quintessential even
today--thanks to eighteen thousand Air
Indians who have kept alive the tradition of
flying high!

4. HISTORY OF AIR INDIA
In 1932, In 1960,
Air India began its journey under Air India flew its first
the aegis of Tata Airlines, a international flight to New
division of Tata Sons Ltd. (now
Tata Group). Following World
York via London. In 1962,
War II in 1946, regular Air India became the
commercial service was world's first all-jet airline
restored in India and Tata and its name was officially
Airlines became a public limited truncated to Air India
A
company under the name of Air
India. Under the Air
Corporations Act of 1953, the
Government nationalised the
air transportation industry and
Air India International Limited
was born.

5. Company Perspectives
• Air-India is India's finest flying Ambassador.
The do to excel and the enthusiasm which
characterized Air-India's first flight way back
on October 15, 1932 is quintessential even
today--thanks to eighteen thousand Air
Indians who have kept alive the tradition of
flying high!

6. In 2007,
• 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.

8. Reason for Air India Crisis
•The real reasons behind the
present financial crisis are the
interest burden , repayment and
overhead expenses.
P&l Balance sheet

9. According to Times of India
newspaper till 1 week ago
Annual Losses of Rs. 5000 cr and total
accumulated loss of Rs 16000 cr.
It compensation Rs. 1400 cr to state own airport
operator.
Air India has 10% of total global airlines revenue
losses

10. Air India is facing a tight financial situation and is in
talks with leaders to restructure its debt of Rs. 40k cr .
As of March 2011, Air India has accumulated a debt of
Rs. 42,570 cr and an operating loss of Rs. 22,000 cr,
and is seeking Rs. 42,920 cr from the government. For
the past three months (June, July, August, 2011), the
carrier has been missing salary payments and interest
payments
A report by the Comptroller and Auditor General (CAG)
blamed the decision to buy 111 new planes as one of
the major causes of the debt troubles in Air India.

11. The causes
 Bad management and unreliably policies
has brought Air India crisis level
Complete lack of ownership
 Lake of responsibility for results and
failures.
 Deeply ingrained corruption in all levels.

12. Unionized strike with political financial support
has physical disability of Air India.
The Top Boss of Air India not having decision
power as there will be ministry interventions which
leads to lake of cohesiveness, focused, proactive
and long term business planning.

13. Government Turnaround
Strategy of Air India
 Bail Out plan for Rs.15000 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

14. Revival Strategies
The cash strapped Air India revival strategies can be
comprehensively drawn out on short term , medium term and
long term basis. The Area of Strategic Interest should be on
following business. The most important aspect to address
would be teamwork and response spontaneity.
 Air India the international brand
1. Full service high value travel
2. Business Class travel
 Air India – the national brand
1. Full service high value travel
2. Business Class travel
 The Cargo Services

15. Revival Strategies
Short term strategy would in evaluating and reorganizing in other
strategy area and existing operation which are to be completed in 3 to
6 months time
Medium term strategy would be in International , National and Cargo
service with an comprehensive analysis of segmentation of market to
be executed in 6 to 12 months
 Long term strategy would be online of global perspective to the
aviation business and developing further future strategy to be
considered for 12 months and beyond periods.
The main values for revival strategies should be agility , team work
and response spontaneity to services.

16. Thank
You