The future for Air India, India's national carrier

[Oracle]

nrj & track - bang on spot.

I don't understand why taxpayers money is used on that evil carrier. Sell it or kill it.

 

[Oracle]

1000s of crores of rupees has been spent on this airliner. Nothing ever came out of it. Such stupid.

 

[AirforcePilot]

Just sell the goddam airliner. Why the hell are we living in the 19th century where the state still owns a frekin airliner?

The aviation industry here in the US is pretty tough. Airlines are going bankrupt because they are not making a profit due to rising fuel and maintenance cost. In another 10 years the government will have to heavily subsidies them to keep them in business.

 

[trackwhack]

The aviation industry here in the US is pretty tough. Airlines are going bankrupt because they are not making a profit due to rising fuel and maintenance cost. In another 10 years the government will have to heavily subsidies them to keep them in business.

Every business follows the laws of economics. If its too expensive raise the costs for the customers. Only those that can afford to fly will fly. Costs will settle at a range that is justified. The industry has to evolve and feed itself. This is free market aint it?

 

[Oracle]

The aviation industry here in the US is pretty tough. Airlines are going bankrupt because they are not making a profit due to rising fuel and maintenance cost. In another 10 years the government will have to heavily subsidies them to keep them in business.

Nice to see you back, Sir. I hope all's well.

 

[Blackwater]

I think it will be a good start for Air India to learn some lessons on professionalism.

It's high time for Air India to come out "chalta ha "attitude

 

[Oracle]

It's high time for Air India to come out "chalta ha "attitude

This 'chalta hai' attitude happened with me on a flight from Heathrow to Mumbai. I won't go into details as the middle aged 'mohtarmas' might mind.

Air India is a shame, just like any other Government service.

 

[Ray]

Shut it or return it to Tata.

 

[Son of Govinda]

Air India faces possible shutdown, says new report

Air India faces possible shutdown, says new report

The Center for Asia Pacific Aviation on Wednesday said there is a high likelihood of Air India – the country's national carrier – being shut down due to human resources problems at the airline and the management not taking responsibility. In a hard-hitting report, CAPA said that Air India is set to enter a defining period as likely management changes loom ahead. Here are the top 10 takeaways from the report.

"¢ The national carrier is operating on an unviable business model. It continues to stay in the air because it is being funded by taxpayer money.

"¢ The airline is entering a defining period. The human resources integration following the merger of the erstwhile Indian Airlines with Air India has been handled badly, the report said. It adds that this issues has been almost deliberately ignored, with nobody in senior management or government taking responsibility.

"¢ With no strategy of its own, the report says the government now has no option but accept the proposals of the Justice Dharmadhikari report, whose recommendations are yet to be made public.

"¢ According to CAPA, the outcomes will meet with a mixed response from the unions and more strikes are likely. The government, it says, seems to be preparing to adopt a firm stance, limiting discussions with the unions.

"¢ It may not even shy away from a watershed moment in the next two to three months after the report is accepted by the government. This moment, the report says, could include a temporary shutdown of the airline.

"¢ Another key concern is that the management at Air India could be set for change at the most senior levels, including the position of chairman and managing director. The new team could be faced with a highly charged and complex situation.

"¢ The Air India board has also not been strengthened following a couple of high profile non-executive departures last year. Within the government, too, there could be new appointments in a number of senior roles.

"¢ The report points out that there is nobody taking ownership of the turnaround plan for Air India. At the same time, the plan itself is unrealistic and unachievable without first resolving the personnel issues emerging from the merger of the two carriers.

"¢ CAPA once again recommends that Air India should be placed in special administration, similar to that adopted for Satyam, if any meaningful progress is to be achieved. This would involve bringing in technocrats and experts to run the airline, external accountants and auditors, and a government-brokered panel to oversee the transition.

"¢ The pre-occupation with Air India has also hurt the ministry of civil aviation. Because of the Air India crisis, the ministry has fewer resources to focus on industry issues. As a result, the policy and regulatory framework is weak and misaligned with industry requirements.

 

[lcatejas]

It will be the great step to shutdown the National Carrier... any how its going on loss ... thanks to our great AS@#$% ministers and Responsible air India (Strike) staff...

 

[panduranghari]

I was looking to buy tickets for me and family from London to Mumbai and back for next month. Air India is 150£ cheaper per head. Why risk it though, what if the airline just shuts down.

 

[Son of Govinda]

End strike or Air India will hire new pilots: Ajit Singh

End strike or Air India will hire new pilots: Ajit Singh - The Times of India

NEW DELHI: The strike by pilots of erstwhile Air India that began on May 7 is unlikely to end soon even though Aviation minister Ajit Singh on Friday, after meeting the striking pilots assured them that the airline would not be vindictive if they resumed work immediately.

He also told them that the airline could begin hiring pilots in a fortnight if the agitation - that has already led to a further loss of Rs 270 crore to the financially ailing airline -- continues. The pilots however said that none of their demands have been met and see no reason to return to the cockpit.

The Indian Pilots Guild (IPG) has continued the strike, for 18 days now, despite court orders terming it illegal. Singh, who has adopted a tough stand against the strike, did not meet the now derecognized IPG office bearers (all of whom have been sacked) but five AI pilots.

Singh is learnt to have patiently heard the pilots and then did some plain talking during the 90-minute meeting that was joined by AI CMD Rohit Nandan at the end. "The government's mandate to us is very clear that AI has to be become profitable in 4-5 years. For that everyone needs to work together. Unions need to behave responsibly. No strike notice was given for this agitation and yet so many reported sick. They have to return to work and the airline will not be vindictive. Everything can be discussed then," Singh said after the meeting.

AI is currently operating a truncated schedule of longhaul international flights. The nonstop flights to US now go with a stop in Europe. The contingency plan is in place till June 30. If the strike ends soon, then AI would first re-start the routes on which it bleeds less.

One of the major things the five pilots were insisting on was that AI should take back all the 101 sacked pilots. The minister told them that being a PSU, AI would have to follow procedures under which each person would be dealt with on a case-to-case basis.

The minister said AI is working out a new business model in which a relook is being given to the loss-making routes and examining how to optimally deploy the Boeing 787 Dreamliner. "The biggest loss-making routes would be reconsidered. We will see how the 787 can be used to maximise revenue and minimise losses. A completely new plan is being worked out," said Singh.

 

[aeroblogger]

Re: Air India faces possible shutdown, says new report

CAPA (Centre for Asia Pacific Aviation) is usually full of sh*t. This article is no exception.

Air India is not going to be shut down any time soon. The ramifications to the Indian economy would be massive and debilitating.

 

[Ray]

Re: Air India faces possible shutdown, says new report

Shut Air India down.

Let this free trippers of govt on foreign jaunts suffer and the ironclad hold of the labour and pilots be destroyed forever and these characters become unemployed so that all learn that there is nothing called a Free Lunch!

 

[aeroblogger]

Re: Air India faces possible shutdown, says new report

Shut Air India down.

Let this free trippers of govt on foreign jaunts suffer and the ironclad hold of the labour and pilots be destroyed forever and these characters become unemployed so that all learn that there is nothing called a Free Lunch!

There may be nothing called a free lunch, but there is an expectation that if the pilots carry out their side of the contract, the government will do their part too.

I agree that the strike was a terrible move, but the pilots do have some reasons which are somewhat compelling for striking. They aren't asking for the moon.

 

[LurkerBaba]

Threads merged

 

[Bangalorean]

Re: Air India faces possible shutdown, says new report

CAPA (Centre for Asia Pacific Aviation) is usually full of sh*t. This article is no exception.

Air India is not going to be shut down any time soon. The ramifications to the Indian economy would be massive and debilitating.

Yes, it needs to be sold, not shut down.

 

[aeroblogger]

Re: Future of Air India, India's national carrier

Yes, it needs to be sold, not shut down.

Selling is hardly the silver bullet people make it out to be (there are a variety of issues with privatization that are only obvious if you follow the industry closely), but I agree that getting AI out of the hands of mantris and babus would definitely be a positive step.

Unfortunately, due to a variety of factors (many of which are political), the likelyhood of this is very low. AI is on it's way up though - they've been improving across the board. I still maintain hope that AI will be able to turn itself around under government control. With the government backing them, they can afford to take risks that could pay off big time in the long run.

AI has an illustrious history, and it could have an illustrious future too. It just won't be easy.

 

[LurkerBaba]

Praful Patel, aide sunk Air India, former Indian Airlines chief says

NEW DELHI: In an unprecedented whistleblowing act, former Indian Airlines chief Sunil Arora wrote to the then cabinet secretary B K Chaturvedi in May 2005 complaining that he and the IA board were being pressured by then civil aviation minister Praful Patel and his OSD to take financially damaging and commercially unviable decisions.

In his May 28, 2005, letter, Arora listed the decisions on which the board was overruled: purchasing more jets than required, disallowing IA to fly on viable routes to make way for other operators and, even "changing the seating configuration" to favour a particular aircraft manufacturer.

Two Lok Sabha MPs, Prabodh Panda (CPI) and Nishikant Dubey (BJP) have now approached the CVC for a probe into Arora's allegations, saying the government has failed to act.

"I would like to place before you a series of events and certain directions given to me by my immediate superior officer and the minister of civil aviation which have a vital bearing on certain critical decisions being taken in Indian Airlines and Air India... I have been constrained to write in detail to be able to explain the nuances of the verbal directions, the infirmities in the subsequent decisions taken and my consequent sense of unease in the matter," Arora wrote.

He also expressed apprehension over the consequence of his action. "Sir, kindly pardon my impertinence but I implore you to share the contents of this communication only with the Prime Minister... I would not have taken the liberty of making such a suggestion but for the fact that like every mortal, I fear for my personal and family safety."

Complaining of pressure, Arora said, "During the last one year, almost all board meetings of Air India, and even some board meetings of Airports Authority of India have become a farce. Instructions on key agenda items are communicated before hand on telephone or personally by minister, civil aviation, or by his OSD K N Choubey. No suggestions to the effect, that the issue in question requires a more detailed examination or that there are some implications are countenanced. The key word is 'immediate and unquestioned compliance'." Some of the most glaring instances are cited:

"AI discussed their dry leasing plans in 99th board meeting held in Mumbai on 17.7.04. Prior to this meeting, minister spoke to me... said since he and secretary, civil aviation, were satisfied about the correctness of the plans, it is expected that we should immediately endorse it during the board meeting. When I tried to tell him on telephone that the agenda item raises some issues, I was curtly asked to endorse the proposal and a counter question was posed on the telephone that when the minister and the secretary himself are satisfied, what more is there for us to see?"

Arora further wrote that the minister forced him to seek flight slots for IA to the UK and the US during the winter schedule instead of the profitable summer schedule even as private airlines were allowed to fly to these destinations in the summer.

"There is a clear mismatch between the reply given before the members of Parliament and the real facts. On 18.01.05, I got a message to immediately speak to the minister on telephone at his Mumbai landline... There was a conversation which went on for 15 to 20 minutes and minister civil aviation clearly told us not to file for flights to London, for the summer schedule 2005. He started by saying that since Indian Airlines does not have wide-bodied aircraft, it would not be advisable for Indian Airlines to apply for the slots at this stage.

I politely remonstrated that none of the other airlines, which have been permitted to go abroad viz Jet and Sahara, had wide-bodied aircraft till that time and if they can be considered for flights to London, Indian Airlines being the national carrier, should at least be given equal footing, if not precedence. The response on the other side was that, Indian Airlines should apply for flights to London or for other UK and US destinations only from the winter schedule."

Praful Patel, aide sunk Air India, former Indian Airlines chief says - The Times of India

 

[sob]

I have started flying AI ( Domestic) from the last month and I was very much impressed.

All the flights were on time, in fact there was a sense of urgency amongst the crew to get the plane off the tarmac at the earliest.

Service levels have certainly gone up. The flight crew were smiling, no scowls on the face. food was very decent.

And the best part was on Delhi-Bhopal sector the tickets were cheaper than Jet Airways by around Rs. 4000 on the round trip.