Air India: an overview
- Air India, the arm of Air India Limited is a Government owned aviation enterprise.
- Tata Airlines,which was initiated by J.R.D. Tata became a public limited company on 29 July 1946 under the name Air India
- A proposed merger of Air India with Star Alliance in 2007 was stalled due to non-compliance in membership standards. However, in December 2013, this collaboration was completed.
International flights hit rock-bottom
- Air India lost about ₹ 4,273.35 crores on the operations of international carriers. About 57 of the 59 international carriers recorded a loss for the year 2013-14.
- About 32 flights from the said 59 failed to even recover the operational cost, let alone make profits.
- Air India also estimated that scrapping just three of the top loss-making flights could combat further losses.
India’s first frequent flyer scheme launched
Air India came up with “Flying Returns” - India’s first frequent flyer programme. This scheme was highly rewarding and it was available in all of Air India Limited carriers.
Minimizing staff to combat losses
- The Government commanded Air India to improve the financial performances. Air India immediately proposed a cost-cutting of ₹14 billion.
- It also announced that excess in human resources would be identified and contractual hiring would be terminated. Hospitality staff recruitment was also minimized.
- The high-operating costs of Air India and entrant of newer low-fare airlines caused the continual losses.
Air India registers recovery from losses
- Air India, recovered from losses to make a net profit of ₹14.6 Crore in December 2014. Total revenue increased by 6.5% from ₹1,994 crore of the previous year to ₹2070 crore.
- The operating profit increased from ₹2 crore in 2013 to ₹183 Crore in 2014.
- Passenger revenue for the year 2014-15 was meanwhile estimated to be ₹16,500 crore.
PM proposes a make-over to age-old mascot
The iconic "Maharaja" of Air India underwent a change in the appearance to look like a "common man". This was recommended by Narendra Modi, during a presentation by the Civil Aviation Ministry.
Disinvestment not on cards, clarifies Government
- MoS-Finance, Jayanth Sinha clarified that disinvestment of two loss making Government enterprises, BSNL and Air India was not on cards.
- Despite the continued losses and emphasis from employees to privatise these entities, the Government did not approve of the idea.
- In addition, Sinha also pointed out that receipts from disinvestments in the economy for the past three years had fallen from the set targets.
Air India trims losses by a fourth
- Air India trimmed its losses by a fourth as compared to the last fiscal year. It has cut-down on losses from ₹7559.74 crore to ₹5,547.74 crore.
- Also, the aviation giant has shown marked improvements in both operational capacity and financial areas.
- The turnaround plan which was initiated to revive the falling airlines, achieved this by performing restructuring in finance and other related areas.
Air India makes first profit in 10 years
- Civil Aviation Minister Ashok Gajpathi Raju said that the performance of Air India has improved and it is making profit for the first time in 10 years.
- Speaking in Rajya Sabha he said "Air India's all-time performance has increased. This year it is making profit."
- He also reassured the house about Air India's improved safety standards, saying "no risk to life would be tolerated."