Airliners-India.com Flickr Group & Facebook    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  Air India turnaround plan Goto page 1, 2, 3 ... 9, 10, 11  Next          Airliners-India.com Forum Index -> Civil Aviation View previous topic :: View next topic   Author Message karatecatman Guest Posted: Fri Aug 07, 2009 11:57 pm    Post subject: Air India turnaround plan Air India says: -Company targetting turnaround in 36 months -To focus on low-cost carrier for high density routes -To create subsidiary for MRO, ground handling, cargo -Current market pressures seen continuing for 2-3 years -To launch domestic low-cost~carrier operations in 9 months -To re-evaluate aircraft purchase, financing -To restructure existing debt -To undertake fleet rationalisation -To redesign work rule, staff incentive scheme -Low market, low yield, tough competition seen for 2-3 years -High ATF prices, low passenger load a concern -On-time performance to be a priority -To take up IPO, additional fund raising after 18 months -Plan to integrate local, overseas flights -Aim to provide seamless connectivity to passengers -To phase out all old aircraft -To replace phased out aircraft with fuel efficient ones -Looking at route, capacity rationalisation -To spin off non-core business in 18-36 months -To spin off non-core business via public offer, JVs -Have 32,000 employees on roll -Have 4 identifiable business groups within company -Have never asked for bailout package from Govt -Cash flow problem due to recent aircraft acquisition -Recent aircraft acquisition came after gap of many years -Execution of plans top priority -To focus on cost cutting, revenue generation -Need to improve corporate governance, transparency -To look at international best practices -Officially involving employee unions in turnaround -AI union to comprise half of turnaround committee -Need shareholders' backing for restructuring -Want high-cost debt to be replaced by low-cost debt -Manpower rationalisation to be in line with DGCA guidelines Scam for bringing in leased aircraft still open. Back to top Jaysit Member Joined: 19 Dec 2006 Posts: 4346 Posted: Sat Aug 08, 2009 12:11 am    Post subject: Sounds like a random laundry list of ideas, not all of which are compatible with each other. Back to top karatecatman Guest Posted: Sat Aug 08, 2009 12:40 am    Post subject: BUSINESSLINE Banks want comfort letter from Govt for AI loan recast New Delhi, Aug. 7 Banks and financial institutions are seeking what amounts to a sovereign guarantee from the Government for converting Air India’s high-cost debt into a low-cost one. Addressing a press conference here on Friday, the airline’s Chairman and Managing Director, Mr Arvind Jadhav, said banks and FIs were willing to convert the high-cost debt of about Rs 11,000 crore to low-cost one, provided the Government provided a “comfort letter”. The airline has reported accumulated losses of about Rs 7,200 crore for the year ended March 31, 2009. This is one among the several measures that the airline is considering as part of the financial restructuring. The airline plans to prepare for an initial public offering in 2011 and come up with an additional issue, which will be open to the public, financial institutions and qualified institutional placement in the following fiscal. The airline has estimated that it needs to generate Rs 4,000-5,000 crore annually to implement its turnaround plan. Declining to speculate on how much the airline is seeking from the Government, Mr Jadhav merely said it was wrong to say it was seeking a bailout from the Government. “What I ask for does not matter. What matters is what is given. We have received only Rs 145 crore from the Government. Air India and the erstwhile Indian Airlines have contributed about Rs 4,500 crore by way of taxes, duties and dividends to the exchequer,” Mr Jadhav said. The airline “was not yet” looking at a voluntary retirement scheme for cutting down its losses, Mr Jadhav said. He also announced that Air India will launch low-cost domestic operations next month under the Air India Express brand. “Twenty-seven routes of the 100 operated by us will be with low-cost services. Slowly this will be increased to 60-70 per cent of all our services. This should help us improve our bottomline. On the number of crew on these flights, we will follow the best practices in the industry,” he said. Back to top Nimish Member Joined: 16 Dec 2006 Posts: 9757 Location: Bangalore, India Posted: Sat Aug 08, 2009 8:32 am    Post subject: I love the "36 month" bit. Isn't this is the nth such demand for a 36 month turn around plan? AI - please spare India this non-stop stream of lies, take 2-4 months, shape up or shut down. That would be my "humble request"... _________________ We miss you Nalini! Back to top avbuff Member Joined: 22 Dec 2006 Posts: 5031 Posted: Sat Aug 08, 2009 8:54 am    Post subject: Nimish wrote: I love the "36 month" bit. Isn't this is the nth such demand for a 36 month turn around plan? AI - please spare India this non-stop stream of lies, take 2-4 months, shape up or shut down. That would be my "humble request"... Very true indeed. Back to top Spiderguy252 Member Joined: 10 Aug 2007 Posts: 4259 Location: Indian Ocean Posted: Sat Aug 08, 2009 9:47 am    Post subject: The fact of the matter is that AI gets worse every 36 months. _________________ Yeah. Back to top rutvij Member Joined: 22 Feb 2007 Posts: 1390 Location: Skies of Fire! Posted: Sat Aug 08, 2009 10:14 am    Post subject: Read from the TOI Mumbai report (today): Eventually, 70% of all Domestic Sectors will be taken over by AIX. Thats a Big Thumbs UP ! Back to top karatecatman Guest Posted: Sat Aug 08, 2009 1:17 pm    Post subject: rutvij wrote: Read from the TOI Mumbai report (today): Eventually, 70% of all Domestic Sectors will be taken over by AIX. Thats a Big Thumbs UP ! (Many thanks to source for this) Air India's Turnaround Plan Highlights: Global Aviation Industry is currently going through the most difficult phase. Airlines have collectively lost over US $10.4 billion last year, and are estimated to lose a further US $9 billion this year, of which US $2 billion (Rs 10,000 crores) will be the share of Indian carriers. With Air India operating in a global environment, the national carrier has been impacted as adversely as other airlines the world over. The causes for the losses suffered by Air India need to be viewed in the perspective of: • Escalating costs, particularly of ATF. • Fewer passenger numbers, particularly in the premium class. • Low fares with a gradual shift of passengers from legacy full service airlines to low cost airlines. • Decline in carriage of cargo. • Excess capacity in a ‘falling’ market. As the existing downturn is expected to continue, Air India has initiated several measures for operational and financial turnaround. The measures proposed for attaining these objectives are: • Product upgradation through improved on time performance and enhanced customer touch point experience. • Seamless connectivity from interior points of India to destinations abroad. • Pre-mature retirement of old aircraft, including leased aircraft, and their replacement with a newer fuel efficient fleet. • New aircraft with best-in-class passenger amenities. • Rationalization of routes and capacities. These measures will enable Air India to achieve higher passenger revenues through improved load factors and increased yield. The management will simultaneously focus on increased revenue generation through allied businesses like cargo, engineering and ground handling. Hard Facts • Air India has never received budgetary support, except for the initial equity. • Past fleet acquisitions by Air India have always been financed through internal resources. In the past 20 years alone, 41 aircraft worth US $3 billion were selffinanced. • Air India also inducted leased aircraft to augment capacity, without any government support. • Aircraft acquisition after a 15-20 year gap has resulted in a large fleet order and high debt burden. • In the last 3-4 years the entry of low cost carriers has caused the aviation tariff structure to transform from a cost plus to a market driven pricing structure, with capacity exceeding demand. • Internal resource generation in the current context is insufficient to fund aircraft acquisition costs. • The magnitude of debt burden and rising cash deficit in a ‘falling’ market necessitates aggressive financial restructuring (capitalisation and debt restructuring). • There are several national carriers across the world who have received financial support from their respective Governments e.g. Japan Airlines, China Southern, China Eastern, British Airways, etc. • Air India and erstwhile Indian Airlines have contributed an amount of approximately Rs. 4500 crores by way of taxes, duties and dividends to the exchequer. Air India Roadmap • Focus on execution, accountability, cost reduction and revenue generation. • Adopt international best practices in airline operations, MRO activity, airline terminal services, cargo, aviation skills development, corporate governance and HR. • Be accountable to the stakeholders. Current market pressures are expected to continue over the next 2-3 years. Therefore the only option available is the rationalization of costs without losing sight of the long term requirements of Air India. • Route rationalization and route profitability: NACIL will enhance focus on LCC for high density domestic/international routes and will undertake an aggressive route restructuring for seamless connectivity facilitated by 6th freedom traffic rights, Star Alliance network and other code shares with Airlines for routes where NACIL has nil or insignificant operations. • Revenue generation through better revenue and yield management, greater customer segmentation and adoption of more effective CRM practices. • Creation of subsidiaries for Maintenance, Repair & Overhaul(MRO) , Ground Handling and Cargo to fully leverage existing capabilities, reduce overheads on airline operations and create new sources of long term revenue generation. • Manpower rationalization to achieve industry benchmarks. Utilization of assets and operating/technical crew as per DGCA /FAA/JAA. • Monitor Operational Quality and Efficiency by initiating business process, inventory and IT audits through independent agencies. FY-10 – Focus on ‘Survival’ – • Operational restructuring – Cost Reduction – Revenue Enhancement • Financial Restructuring FY-11 Focus on reducing losses • Business restructuring – low cost model, – Subsidiaries for Cargo, MRO etc operational • Brand building & Makeover • Preparation for IPO FY-12 – Deliver the ‘future’ Air India – Healthy operating margins • Additional Public Offer • Public • Indian Financial Institutions • QIPs • Adopt a robust Enterprise Risk Management framework to eliminate redundancies and minimize dilution of revenues. Employee Participation in Turnaround Process Air India has constituted committees to address issues of turnaround. For the first time, Air India management has engaged workers through their representative unions on these committees, so that their experience can enrich the turnaround process. The committees will work in areas such as route rationalization/schedules, manpower rationalization, green initiatives, integration, procurement and contracts, engineering, customer feedback, safety, alliances and turnaround strategy. Brand Building and Makeover • Tie-up with major hospitality chains for service standard training and makeover for cabin crew, customer handling and sales functions. -- Tie-up with Singapore Airlines for cabin crew training Periodic Customer Satisfaction Surveys through independent agencies will be undertaken. NACIL will focus on F & J class, leisure travel to improve yields. Aggressive brand harmonization across key customer interfaces will become the prime directive to increase brand loyalty. • NACIL will undertake strategic initiatives to ensure market presence and continuity by fast tracking entry into Star Alliance, improving the existing loyalty programme, and commercial process transformation supported by an enterprise-wide IT transformation that will allow NACIL to achieve international quality levels in terms of delivery and service. Some of the key systems that will enable this transformation are Enterprise Resource Planning (ERP), Passenger Scheduling System (PSS), Hub Control System/IOCC (Integrated Operations Command Centre), MRO (Maintenance Repair and Overhaul). • NACIL will closely function with IATA for Strategic Alignment Assistance programme and seek advisory support from Lufthansa, Singapore Airlines, Egypt Air, Malaysian Airlines, Delta on their transformation programmes. For this purpose, an International Aviation Advisory Board with representatives from Europe, Asia and USA will be constituted. Air India Mumbai/New Delhi August 2009 Back to top tayaramecanici Member Joined: 03 Jan 2007 Posts: 648 Posted: Sat Aug 08, 2009 2:00 pm    Post subject: karatecatman wrote: [ [/i] Load of Bo££ock$, AI has had it easy all these years with nearly little or no competition. Kick those blood suckers onto a proper job and privatise this NACIL. Its the same $hi£ diff day from NACIL. Don't buy this NACIL management propoganda. Back to top Karan69 Member Joined: 22 Dec 2006 Posts: 1334 Posted: Sat Aug 08, 2009 3:52 pm    Post subject: karatecatman wrote: Brand Building and Makeover • Tie-up with major hospitality chains for service standard training and makeover for cabin crew, customer handling and sales functions. -- Tie-up with Singapore Airlines for cabin crew training [/i] I just hope that the AI aunties dont influence SQ and the SQ hotties start becoming fat and lazy Karan Back to top Nimish Member Joined: 16 Dec 2006 Posts: 9757 Location: Bangalore, India Posted: Sat Aug 08, 2009 5:46 pm    Post subject: Evidently AI/IC don't think the *A tie up is important for their survival, as otherwise we'd have seen something mentioned in the 3 yr plan. IMO that would be one of the key things to their survival strategy... _________________ We miss you Nalini! Back to top Spiderguy252 Member Joined: 10 Aug 2007 Posts: 4259 Location: Indian Ocean Posted: Sat Aug 08, 2009 5:48 pm    Post subject: Nimish wrote: Evidently AI/IC don't think the *A tie up is important for their survival, as otherwise we'd have seen something mentioned in the 3 yr plan. IMO that would be one of the key things to their survival strategy... Maybe not important, but in a wider aviation context, and for the average Indian pax, it makes sense to have AI/9W/IT join a global alliance instead of all of them being standalone carriers with no co-ordination, as they are now......... _________________ Yeah. Back to top avbuff Member Joined: 22 Dec 2006 Posts: 5031 Posted: Sat Aug 08, 2009 8:49 pm    Post subject: By the time all this feel good stuff is implemented all their rivals must have will have gone miles ahead and then Arvind Gadhav I mean Jadhav will come up with a new plan. Back to top Jaysit Member Joined: 19 Dec 2006 Posts: 4346 Posted: Sat Aug 08, 2009 9:07 pm    Post subject: Step 1. Put all your operations under one entity - Air India. Step 2. Create a real website. Do it on the cheap by asking some desi IT students to do it in a week. Back to top Spiderguy252 Member Joined: 10 Aug 2007 Posts: 4259 Location: Indian Ocean Posted: Sat Aug 08, 2009 9:14 pm    Post subject: Jaysit wrote: Step 2. Create a real website. Do it on the cheap by asking some desi IT students to do it in a week. I'd be more than happy to take up the job. And it's not just Air India. Check out the Election Commission's or NIC's or Doordarshan's websites. They're all the same. Horrible stuff! _________________ Yeah. Back to top sumantra Member Joined: 28 Oct 2007 Posts: 4685 Location: New Delhi Posted: Mon Aug 10, 2009 11:01 pm    Post subject: Karan69 wrote: I just hope that the AI aunties dont influence SQ and the SQ hotties start becoming fat and lazy Karan Conversely, I hope the AI CC do not become completely robot-like as the SQ crew are, especially since there are quite a few wonderful people with genuine warmth and pride in their work, in addition to the terrible obnoxious kind. I have been lucky to have interacted with quite a few of the former kind, and only a handful of the latter. Cheers, Sumantra. Back to top rutvij Member Joined: 22 Feb 2007 Posts: 1390 Location: Skies of Fire! Posted: Mon Aug 10, 2009 11:30 pm    Post subject: sumantra wrote: Karan69 wrote: I just hope that the AI aunties dont influence SQ and the SQ hotties start becoming fat and lazy Karan Conversely, I hope the AI CC do not become completely robot-like as the SQ crew are, especially since there are quite a few wonderful people with genuine warmth and pride in their work, in addition to the terrible obnoxious kind. I have been lucky to have interacted with quite a few of the former kind, and only a handful of the latter. Cheers, Sumantra. Thumbs Up for the latter part! Me too lucky, on the Nonstops several times. Back to top ssbmat Member Joined: 20 Dec 2006 Posts: 1710 Posted: Tue Aug 11, 2009 7:49 am    Post subject: avbuff wrote: then Arvind Gadhav I mean Jadhav will come up with a new plan. whoops..thats uncalled for, man..! By that token, what would you call Naresh Goyal or Vijay Mallya? After all, it is this 'troika' of airline heads whose companies are suffering the most.. Back to top avbuff Member Joined: 22 Dec 2006 Posts: 5031 Posted: Tue Aug 11, 2009 8:20 am    Post subject: ssbmat wrote: avbuff wrote: then Arvind Gadhav I mean Jadhav will come up with a new plan. whoops..thats uncalled for, man..! By that token, what would you call Naresh Goyal or Vijay Mallya? After all, it is this 'troika' of airline heads whose companies are suffering the most.. Now you be creative and suggest me. Besides I called him the name after his poor presentation and the unconvincing way he spoke at the press conference. It was a misleading speech yet again. Back to top blrsea Member Joined: 25 Mar 2007 Posts: 182 Posted: Tue Aug 11, 2009 9:08 am    Post subject: Jaysit wrote: Step 1. Put all your operations under one entity - Air India. Step 2. Create a real website. Do it on the cheap by asking some desi IT students to do it in a week. Totally agree. I think an year or so back, they had given the contract to some company, and one of the posters here had contacts with that company. I had given some feedback too. Unfortunately, it still sucks. It won't show fares till you select an itinerary, and if you want to change the search, you need to cancel the previously selected one. The website reeks of incompetence. Even IT students should be able to design it better than that. And it doesn't even give fares for its code share flights. It asks you to contact AI, and when I tried to contact AI, the customer service agent asked me to contact travel agents!! If they are not smart enough to sell through their website and save on agent's commission, they deserve to be in the state they are in. How hard can it be to look at couple of international websites, like BA or AF or any of the american carriers and write up a spec and have it developed? Give the contract to an experienced IT firm, not an uncle or friend's company and give then end-to-end contract to manage and run it. The sheer incompetence of the AI management is mind-boggling! Back to top blrsea Member Joined: 25 Mar 2007 Posts: 182 Posted: Tue Aug 11, 2009 9:12 am    Post subject: sumantra wrote: Karan69 wrote: I just hope that the AI aunties dont influence SQ and the SQ hotties start becoming fat and lazy Karan Conversely, I hope the AI CC do not become completely robot-like as the SQ crew are, especially since there are quite a few wonderful people with genuine warmth and pride in their work, in addition to the terrible obnoxious kind. I have been lucky to have interacted with quite a few of the former kind, and only a handful of the latter. Cheers, Sumantra. I wouldn't dismiss the SQ crew as robotic. You get a consistent experience on almost every flight. That means you need to have rules in place and have each one of the FA follow it diligently. The experience on AI varies so much from downright rude and surly to almost mom-like warmth and cheerfulness. It is a hit and miss every time. Let AI first try to ensure a consistent helpful service and the wonderful people among them will manage to inject warmth into that too. Back to top sumantra Member Joined: 28 Oct 2007 Posts: 4685 Location: New Delhi Posted: Tue Aug 11, 2009 9:19 am    Post subject: rutvij wrote: sumantra wrote: Karan69 wrote: I just hope that the AI aunties dont influence SQ and the SQ hotties start becoming fat and lazy Karan Conversely, I hope the AI CC do not become completely robot-like as the SQ crew are, especially since there are quite a few wonderful people with genuine warmth and pride in their work, in addition to the terrible obnoxious kind. I have been lucky to have interacted with quite a few of the former kind, and only a handful of the latter. Cheers, Sumantra. Thumbs Up for the latter part! Me too lucky, on the Nonstops several times. Rutvij, not just on the non-stops. If my nebulous memories serve me correctly, I may have expreienced the same Mr. Ashok (Chavan?) whom Abrelosojos writes fondly about in: http://www.airliners.net/aviation-forums/trip_reports/read.main/153233/ This was on a LHR-DEL AI124, in 2007. Or is he Mr. Ashok Chawla(?), another very cheerful and knowledgeable FA, whom I experienced on BOM-FRA AI127, in 2007, again? There is an interesting post on A.net on the Singapore airlines FAs by Roni Hawi: http://www.airliners.net/aviation-forums/trip_reports/read.main/152647/ Incidentally, I had a horrible lady FA on the ORD-LHR leg of AI124, who was outright rude and obnoxious - even with her junior colleagues. The colour of the skin matters? Sometimes, yes I too have seen this. But some nice words, and talking to them respectfully - often brings out the nice traditional Indian hospitality from many otherwise aloof FAs. Hmm...quote-within-quote-within... I guess I'll stop here. Cheers, Sumantra. Back to top Spiderguy252 Member Joined: 10 Aug 2007 Posts: 4259 Location: Indian Ocean Posted: Tue Aug 11, 2009 10:01 am    Post subject: This topic has converted to an AI FA debate. _________________ Yeah. Back to top karatecatman Guest Posted: Tue Aug 11, 2009 11:55 am    Post subject: sumantra wrote: rutvij wrote: sumantra wrote: Karan69 wrote: I just hope that the AI aunties dont influence SQ and the SQ hotties start becoming fat and lazy Karan Conversely, I hope the AI CC do not become completely robot-like as the SQ crew are, especially since there are quite a few wonderful people with genuine warmth and pride in their work ...Sumantra. Thumbs Up for the latter part! Rutvij, not just on the non-stops. If my nebulous memories serve me correctly, I may have expreienced the same Mr. Ashok (Chavan?) whom Abrelosojos writes fondly about in: Cheers, Sumantra. But no one could or can match Coleen Hai and Raje Balse. They were the face of the airline at one time -- Air India's Singapore Girl. Back to top karatecatman Guest Posted: Tue Aug 11, 2009 12:00 pm    Post subject: avbuff wrote: ssbmat wrote: avbuff wrote: then Arvind Gadhav I mean Jadhav will come up with a new plan. whoops..thats uncalled for, man..! By that token, what would you call Naresh Goyal or Vijay Mallya? After all, it is this 'troika' of airline heads whose companies are suffering the most.. Now you be creative and suggest me. Besides I called him the name after his poor presentation and the unconvincing way he spoke at the press conference. It was a misleading speech yet again. The Mantri will soon meet his match, if not more, in Mr. Jadhav, who will soon prove that he has a vision. Mr. J will be in the league of Probir C. Sen and Sunil Arora. What is helping Mr. J is that he has been noticed by the PM. -- for his work and a no-nonsense style. In fact he was identified as the man to head Air India even at the time Mr. Thulasidas was in the running. That's the image he has with the PMO. Back to top karatecatman Guest Posted: Sat Aug 15, 2009 12:22 pm    Post subject: In his Independence Day speech today, Prime Minister Manmohan Singh has said that the Government is paying special attention to the problems of Air India. The GoI is also looking at the aviation issues in Kashmir and the North East. Back to top karatecatman Guest Posted: Sun Aug 16, 2009 2:23 pm    Post subject: karatecatman wrote: avbuff wrote: ssbmat wrote: avbuff wrote: then Arvind Gadhav I mean Jadhav will come up with a new plan. whoops..thats uncalled for, man..! By that token, what would you call Naresh Goyal or Vijay Mallya? After all, it is this 'troika' of airline heads whose companies are suffering the most.. Now you be creative and suggest me. Besides I called him the name after his poor presentation and the unconvincing way he spoke at the press conference. It was a misleading speech yet again. The Mantri will soon meet his match, if not more, in Mr. Jadhav, who will soon prove that he has a vision. Mr. J will be in the league of Probir C. Sen and Sunil Arora. What is helping Mr. J is that he has been noticed by the PM. -- for his work and a no-nonsense style. In fact he was identified as the man to head Air India even at the time Mr. Thulasidas was in the running. That's the image he has with the PMO. www.businessworld.in/index.php/Interviews/The-Time-For.html The time for Talking is Over For all those in doubt about Mr. Jadhav, please read this. Back to top blrsea Member Joined: 25 Mar 2007 Posts: 182 Posted: Mon Aug 17, 2009 2:00 am    Post subject: A very hard-hitting interview there by Mr Jadhav. If he can implement at least 50% of what he wants to, the carrier will be turned around. Mr Jadhav clearly says that if not for the merger, AI would have died. I remember some people here were pretty pissed off when IC was merged with AI. Now we hear straight from the horse's mouth. Wonder if the merger was Thulsidas' or PP's idea. And 98% of their flights are uneconomical??? that sounds bad. I think the employees too should understand the situation the company is in. Back to top Karan69 Member Joined: 22 Dec 2006 Posts: 1334 Posted: Mon Aug 17, 2009 1:13 pm    Post subject: Mr jadhav needs to get rid of his lithargic marketing staff and get in some bright guns from the IIMs etc who will come at a cheaper price and will get a much better job done Karan Back to top karatecatman Guest Posted: Thu Aug 20, 2009 12:02 am    Post subject: ECONOMIC TIMES AI board may discuss rescheduling of aeroplane delivery 19 Aug 2009 PTI MUMBAI: The Air India board in crucial meet tomorrow is likely to discuss rescheduling of Boeing aircraft deliveries and revision of wages for pliots and senior executives. Air India sources said wage revision of erstwhile Indian Airlines pilots is expected to be the main agenda in tomorrow's Board meeting. They further said the board is also likely to discuss deferment of delivery of Boeing aircraft in the wake of Air India's financial woes and the global downturn. The wage revision, if passed by the Board, would be effective from 1997 and cover all categories of pilots. They (pilots) include First Officers, Captains and Commanders. The Board is also likely to discuss the wage revision agreemnt with Air India officers and executive cabin-crew. According to sources, the board is likely to consider granting another extension to Accenture, which has been appointed as its consultant on the merger of Air India and Indian Airlines into one entity. Back to top sshank Member Joined: 16 May 2007 Posts: 377 Location: NYC Posted: Thu Aug 20, 2009 12:49 am    Post subject: karatecatman wrote: The Mantri will soon meet his match, if not more, in Mr. Jadhav, who will soon prove that he has a vision. Mr. J will be in the league of Probir C. Sen and Sunil Arora. What is helping Mr. J is that he has been noticed by the PM. -- for his work and a no-nonsense style. In fact he was identified as the man to head Air India even at the time Mr. Thulasidas was in the running. That's the image he has with the PMO. www.businessworld.in/index.php/Interviews/The-Time-For.html The time for Talking is Over For all those in doubt about Mr. Jadhav, please read this.[/quote] Thanks KCM. He is certainly saying the right things - stuff PP will not even bring up - issue such as staff strength and unions. That said it remains to be seen if he can actually do something about it. Lets wish this fellow lots of luck - he will need it. Back to top Jaysit Member Joined: 19 Dec 2006 Posts: 4346 Posted: Thu Aug 20, 2009 2:30 am    Post subject: Jadhav looks like a bright guy. But those around him - the managers, the mantris, the netas, the babus - are all corrupt and want the system the way it is. They will fight him tooth and nail. If Obama thinks that changing healthcare in the US is tough in the face of corrupt and greedy politicians, he should try changing Air India. Healthcare will seem like a walk in the park. Back to top karatecatman Guest Posted: Thu Aug 20, 2009 6:44 am    Post subject: www.business-standard.com/india/news/air-india-may-vacate-nariman-point-hq/367572/ Air India may vacate Nariman Point HQ BS Reporters New Delhi August 20, 2009 Global search for COO to start in a week, says Patel. Civil Aviation Minister Praful Patel has asked the management of loss-making state-owned airline Air India, which covers both domestic and international operations, to consider shifting out of its iconic headquarters in Nariman Point in Mumbai to monetise its expensive real estate. “I have already asked them to start looking for other options. They will come back with a plan,” Patel told Business Standard. The Air India building has 22 floors overlooking the Arabian Sea. Many floors are already leased out to other companies and it represents one of the costliest commercial real estate in both the city and the country. Air India made losses of Rs 5,000 crore in 2008-09. Patel also said Air India would be launching a global search for a chief operating officer (COO) for the airline in about a week and hopes to complete the process in two months. “We will put out an advertisement for a COO in a week's time and may even consider bypassing government norms in our search. There are a lot of good Indians working globally and there are people in India, too. Our preference, of course, would be to have an Indian as the COO,” Patel said. AIR INDIA’S REVIVAL LOG * Air India management to shift from iconic headquarters in Mumbai to monetise its assets * To appoint a chief operating officer in two months * Asked for $800 million compensation from Boeing because of delay in the delivery of the Dreamliner * Does not have to pay compensation if Air India decides to defer aircraft deliveries * Integration of the two airlines to be completed by March 2010 On aircraft purchases, Patel said it is up to the Air India management whether it wants to defer delivery and contrary to perception, it does not have to pay any hefty compensation for doing so. "We will work it out in a way that there is no cost involved in cancelling or deferring the aircraft order made by Air India,” Patel said. Air India had ordered around 111 aircraft for both domestic and international operations, of which it has taken delivery of over 50 planes. Air India has also approached Boeing for $800 million as compensation for delays in the delivery of the 787 Dreamliner. Patel also said the airline has been set a deadline of March 2010 to complete the merger between domestic carrier Indian Airlines and international carrier Air India, which would include integrating two different IT systems. The merger was announced in 2006. Air India officials did not reply to queries from Business Standard. On the impasse in implementing the new ground-handling policy at airports, Patel said a compromise is being worked out by his ministry that could include partly conceding to private carriers' demand to undertake their own handling in the ramp side. “The ground-handling decision has to come after discussions with the ministries but our ministry’s view is that the airlines should be allowed to do handling in the ramp side,” said Patel. Private carriers have opposed a government move to outsource their ground-handling to designated companies appointed by the airport operators which also would include Air India. Their contention is that the new players will charge rates that are double current costs and will limit their ability to offer customers better service. And go where? Kalina hangars? Back to top HAWK21M Member Joined: 19 Dec 2006 Posts: 8132 Location: Mumbai, INDIA Posted: Thu Aug 20, 2009 12:27 pm    Post subject: Privatise. Get Political Influence away with. Get Reputed Private players on the Board. Motivate the Staff to work. Reduce the abnormal & generous Incentives for Staff & families. regds MEL. _________________ Think of the Brighter side !!! Back to top karatecatman Guest Posted: Fri Aug 28, 2009 11:34 pm    Post subject: www.livemint.com/2009/08/28172315/Air-India-A-timeline-of-the-c.html?h=B Air India: A timeline of the crisis As Air India finds itself on the verge of bankruptcy, we take a look at the progression of the crisis livemint.com The maharaja is in deep crisis. And probably, it’s on the verge of bankruptcy. Air India cannot survive solely on past glory. The national carrier has lost market share, even as it has piled up accumulated losses of Rs7,000 crore and debt exceeding Rs15,000 crore. On Wednesday, a majority of Nacil employees rejected a proposal to cut 50% of their productivity-linked incentives (PLI), making it harder for the embattled carrier to argue its case for an equity infusion and soft loans from the government. Last Friday, the debt-ridden, state-owned carrier announced a 50% cut in PLIs, that accounts for 30-50% of the salary of Air India employees, hoping to save around Rs700 crore. These incentives cost Air India Rs1,400 crore in 2008-09, a year in which the airline suffered losses of at least Rs5,000 crore. The airline management has announced timely payment of salaries to its staff. It said determined efforts would be made to overcome the liquidity crunch and cut down costs, particularly in areas like rentals for leased aircraft, jet fuel, navigation charges and interest payments on fleet renewal. Below is a timeline of the crisis: March 2007: Air India and Indian Airlines post a loss of Rs541.30 crore and Rs230.97 crore respectively during 2006-07. August 23, 2007: The government formally announces the merger of Air India and Indian Airlines into a new company called National Aviation Co of India Ltd, or Nacil. March 2008: Nacil posts a loss of Rs2226 crore in 2007-08. May 04, 2009 : Arvind Jadhav, a 1987-batch IAS officer, takes over as chairman and managing director of Air India. read story June 12, 2009: Air India issues a circular that the June salary will be delayed by 15 days due to a cash crunch. read story June 20, 2009: Arvind Jadhav writes a letter to his employees saying that the time has come for us to face the moment of truth. June 24, 2009: Air India is asked to prepare a restrucuturing plan by Prime Minister Manmohan Singh in 30 days. read story June 25 2009: Air India sets up turn around committee following the instruction of Prime Minister’s Office read story July 3, 2009 : Air India staff strike for two-hours against delay in the payment of June Salaries. read story July 8, 2009 : Air India ask its functional directors to work only on preparing turnaround plan till submission. read story July 14, 2009: Union Civil Aviation Minister Praful Patel officially announces that Air India has accumulated losses of Rs7200 crore with a loss of more than Rs5,000 crore in 2008-09. read story July 20, 2009: Minister Patel announces Air India’s borrowings rose from Rs6550 cr in Nov 2007 to Rs15241 cr in June, 2009. July 25, 2009: Air India executives and SBI Caps were asked by Committee of Secretaries to prepare a cost reduction initiatives to justify its demand of Rs15,000 crore bail out. read story August 7, 2009: Air India chief Arvind Jadhav announces a turn around roadmap for next three years. read story August 21, 2009: Air India said it will cut 50% of productivity lined incentives from its 31500 employees aiming at saving Rs700 crore read story August 25 2009: Except one union out of 12 unions turned down the proposal of proposed 50 PLI cut and starts hunger strike. read story August 29 2009: Air India to present its progress card before Committee of Secretaries and prove its case for equity infusion. Back to top karatecatman Guest Posted: Fri Aug 28, 2009 11:35 pm    Post subject: Air India likely to table financial turnaround plan STAFF WRITER New Delhi, Aug 28 (PTI) Cash-strapped Air India is likely to table a detailed financial turnaround plan at a meeting of the high-level Committee of Secretaries here tomorrow, showing proposals to cut costs and enhance revenue generation over the next five years. The plan, vetted by the Finance and Civil Aviation Ministries, is likely to include proposals relating to the nature of financial assistance it wants from the government, including equity infusion and soft loan. While the government may make only a partial contribution as equity infusion to the airline, a major part of resource mobilisation is likely to be through options like partial divestment of government equity, issuance of initial public offer or infrastructure bonds, informed sources said. Back to top karatecatman Guest Posted: Fri Aug 28, 2009 11:37 pm    Post subject: www.business-standard.com/india/storypage.php?autono=368430 Nacil manages to control insurance cost Shilpy Sinha Mumbai August 29, 2009, 0:25 IST The National Aviation Company of India (Nacil) has managed to avoid any adverse impact of the Air France crash and could renew its annual insurance cover without a significant increase in insurance premium. The premium remained largely unchanged despite the cover size rising by 34 per cent to $8.59 billion as against $6.39 billion in 2008-09. T Reliance General Insurance in consortium with HDFC Ergo, Bajaj Allianz and Iffco Tokio General Insurance Company, has bagged the contract. The state-owned airline has agreed to pay $24.3 million as premium to insure 134 aircraft. New India Assurance, which had provided cover in 2008-09, came close with a bid of $24.9 million. The public sector consortium was led by New India Assurance. The other bidder for the contract was ICICI Lombard General Insurance. "As compared to last year, the rate has actually fallen since the hull value has gone up by around 34 per cent against no increase in premium rates," said a senior executive at one of the four insurance companies that had insured the airline. Nacil, which uses the Air India brand, had deferred the policy renewal after its expiry on June 30, 2009, as it could extend the policy for three more months at existing rates under a clause in the old policy. Air India had invited fresh bids after getting an extension of the policy in June. People familiar with the development said that the new management was keen on more competition. Two private airlines -- Kingfisher and Indigo -- had to buy cover at the expiry as they did not have any extension clause. On renewal, Kingfisher's insurance premium had shot up by 40 per cent. The largest private sector insurance company, ICICI Lombard, has provided $3.09 billion-cover to Kingfisher Airlines effective from June 24, 2009. Another domestic carrier Indigo has bought insurance from New India Assurance. It saw an increase of around 10 per cent in rates. However, Jet Airways did not have to pay higher premium as it went for the renewal at the beginning of the current financial year. Back to top karatecatman Guest Posted: Sat Aug 29, 2009 3:50 pm    Post subject: ECONOMIC TIMES Govt agrees to infuse Rs 5000 cr into Air India over next 3 years 29 Aug 2009 Nirbhay Kumar NEW DELHI: The government has agreed to infuse an equity of Rs 5,000 crore into cash-strapped Air India over the next three years subject to the airline's performance. A committee of secretaries (CoS) headed by Cabinet secretary KM Chandrasekhar considered Air India's proposal on Saturday to inject capital and provide soft loan, a person close to the development said. "The government would support the airline in meeting its short and medium term capital requirements. The CoS has agreed to increase the equity base of the company and take it upto Rs 5,000 crore over the next three years," the official said. He also said that government would help the airline in getting loan from banks if required. "The airline is comfortable with what the committee has proposed. The airline’s cost-cutting exercise so far undertaken was not satisfactory. They need to do a lot more," another government official said. Air India had earlier sought over Rs 15,000 crore from the government to tide over the crisis. Air India has an accumulated loss of over Rs 7,200 crore as on March 2009. Hit by the worst financial crisis in its history the company has approached the government for financial assistance. The high-level committee has, however, made it clear that the financial help would be linked with money saved by the airline. Air India expects to cut its operational cost by about Rs 2,000 crore per annum besides enhancing its cash flow by 10-15%. The airline aims at saving about Rs 750 crore by rationalising productivity-linked incentives (PLI) of its 31,000 staff. It has targeted to reduce its cost by Rs 500 crore by rationalising its network. on the revenue enhancement front, Air India has decided to unlock the value of its real estate properties and expand its customer base. The airline is all set to launch its low-cost airline Air India Express on domestic routes. "Accenture has given a cost-cutting plan. It has said that company would save over Rs 4,000 crore annually by cutting cost and enhancing revenue. The company chief has asked all concerned functional directors to act and produce desired results," a senior Air India official said on the condition of anonymity. He said that the cost-cutting measures suggested by Accenture has been presented to the CoS. Air India had submitted a turnaround plan, prepared by merchant banking firm SBI Caps, to the panel last month. Loan liabilities of Air India currently stands at nearly Rs 16,000 crore. The company owes about Rs 600 crore to Airport Authority of India (AAI) over and above the dues of private airport operators such as Delhi International Airport Ltd (DIAL) and Mumbai International Airport Ltd (MIAL). "The company has to make principal and interest repayment of about Rs 9,000 crore over the next three years mainly on account of fleet acquisition," an official said. Meanwhile, the CoS has directed the ministry of civil aviation to move a proposal to the Cabinet in consultation with finance ministry for the financial assistance to beleaguered carrier. Back to top karatecatman Guest Posted: Sat Aug 29, 2009 4:49 pm    Post subject: With a majority of employee unions spurning the Air India management’s proposal to slash productivity-linked incentives/flying allowance by 50 per cent, four committees have now been set up to focus on specific segments to review the whole issue. The committees will be headed by functional directors and submit their reports to Jadhav by September, the source said, adding that till then the employees’ PLI/flying allowance would stand reduced by half. NACIL recently had proposed a 50 per cent reduction in PLI/flying allowance which accounts for nearly 50 per cent of the carrier’s annual salary bill of around Rs 3,100 crore. A majority of employees unions have rejected the proposal and even resorted to agitation. ‘‘While one committee headed by the Director Engineering will review the flying allowances of pilots, engineers the PLI issue for ground staff will be reviewed by the committee headed by the Director-Personnel. Similarly, the PLI issue of cabin crew will be reviewed by the committee headed by Director-Related Business and that of officers and others by the committee headed by Director- Finance Back to top sunny84 Member Joined: 14 Jul 2009 Posts: 157 Location: Gurgaon Posted: Sat Aug 29, 2009 10:35 pm    Post subject: just saw it on NDTV...that "AI has submitted its final turnaround plan to the Govt".......can someone throw some light on this.... _________________ “Go to Heaven for the climate, Hell for the company.” – Mark Twain Back to top Display posts from previous: All Posts1 Day7 Days2 Weeks1 Month3 Months6 Months1 Year Oldest FirstNewest First         Airliners-India.com Forum Index -> Civil Aviation All times are GMT + 5.5 Hours Goto page 1, 2, 3 ... 9, 10, 11  Next Page 1 of 11   Jump to: Select a forum New Members----------------Sign-up Guidelines Airliners-India----------------Civil AviationNon AviationTrip ReportsMilitary Aviation & SpaceInternationalAviation Polls & PreferenceTech/OpsAviation PhotographyEditorial/Analysis/ArticlesAviation HobbyAviation LawAviation Questions & CareersSite Related Flickr Group----------------Photo of the Month My Message Board----------------Pin Up  You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum Powered by phpBB © phpBB Group. Hosted by phpBB.BizHat.com