Airliners-India.com

garytare · Member Joined: 29 Feb 2008 Posts: 50 Location: MUMBAI

NEW DELHI: Cash-strapped Air India may get a fresh lease of life with the government agreeing to infuse a performance-linked equity of Rs 5,000
crore over the next three years into the state-owned airline.

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 above Rs 5,000 crore over the next three years,” the official said. He also said the 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 on condition of anonymity. Hit by the worst financial crisis in its history, Air India had earlier sought over Rs 15,000 crore from the government to tide over the crisis. Air India had an accumulated loss of over Rs 7,200 crore as on March 2009. The high-level committee has, however, made it clear that the financial help would be linked with the 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 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. It will also 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 the 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 the cost-cutting measures suggested by Accenture have 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 Airports Authority of India (AAI) over and above the dues of private airport operators such as Delhi International Airport (DIAL) and Mumbai International Airport (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.

30 Aug 2009, 0111 hrs IST, Nirbhay Kumar, ET Bureau

garytare · Member Joined: 29 Feb 2008 Posts: 50 Location: MUMBAI

The Committee of Secretaries reviewing Air India met in Delhi today under the chairmanship of Cabinet Secretary, Mr K.M.Chandrasekhar.
Mr Arvind Jadhav, Chairman and Managing Director, Air India presented to the Committee of Secretaries the Turnaround Plan that includes cost reduction, revenue enhancement and business transformation measures undertaken by the airline in the last two months.

While appreciating various measures taken by Air India, the Committee felt that in some areas more aggressive cost reduction measures were required to be adopted and the company also needs to examine its strategic position with respect to its shareholders objectives. The Committee of Secretaries, after reviewing the Turnaround Plan, directed the Ministry of Civil Aviation to move a proposal to the Cabinet in consultation with the Ministry of Finance.

(c) Centre for Asia Pacific Aviation. Date posted: 01-Sep-09

karatecatman · Guest

www.livemint.com/2009/09/03211605/Air-India-puts-off-domestic-lo.html
Air India puts off domestic low-fare service launch to Nov

Air India currently operates Air India Express as its international low-fare carrier. Its entry into the domestic low-fare aviation market could further lower ticket prices
Tarun Shukla New Delhi:

The country’s national carrier, Air India, has been forced to delay the start of its domestic low-fare service from this month to November as it’s in the middle of reassessing fleet plans, according to at least three company executives.
Air India, run by National Aviation Co. of India Ltd, currently operates Air India Express as its international low-fare carrier. Its entry into the domestic low-fare aviation market, part of the carrier’s revival strategy, could further lower ticket prices.
The airline, seeking to emulate a recent move by Jet Airways (India) Ltd, wanted to convert 10 Airbus SAS A320 aircraft to an all-economy class configuration to launch its domestic low-fare service under the Air India Express brand by the middle of this month. The plan has been delayed by about two months as the airline reassesses its fleet, the officials said.
“The conversion has been put on hold,” said an airline executive who asked not to be named, referring to the removal of business-class seats. Most of the 10 aircraft are on lease and will require permission from the lessors for conversion. “That is one hurdle,” he said.
The delay may harm Air India as the peak festival season will be over by the time the carrier begins the service.
“They should have done it yesterday,” said Aloke Bajpai, CEO of travel site IXiGO.com, referring to the one-month peak festive season running up to Diwali that began early this month and finishes by end-October. “They would not really benefit from the current peak season but will have to wait for the summer season.”
The delay would come as a breather for rivals as the entry of another low-fare carrier was expected to bring fares down further at a time when Jet Airways and Kingfisher Airlines Ltd are struggling with losses.
Another Air India official, who sought anonymity, said the airline was reassessing its 147-strong fleet as it has to return some of its aircraft to leasing companies and that was leading to delays in the process.
The target for the domestic launch is now the winter schedule that starts at the end of October, the official said, adding the process “takes a little time” but that the plan for the low-cost service had not been shelved.
The carrier had on 7 August announced a three-year turnaround plan that included plans to start a low-fare service this month and gradually boost 70% of flights to all-economy ones.
An Air India spokesman declined to comment for the story.
Another Air India executive, who also did not want to be named, confirmed the delay, saying the airline was looking at increasing operations in the north-eastern parts of the country and this may be taken into account while starting low-fare services.
“We don’t know yet, nothing is in black and white,” this official said.
Rival full-service carriers Kingfisher Airlines and Jet Airways, India’s largest private airlines, have already shifted at least half their fleets to all-economy flights as they fight competition from discount airlines such as SpiceJet Ltd, InterGlobe Aviation Pvt. Ltd-run IndiGo and Go Airlines (India) Pvt. Ltd-run GoAir.

karatecatman · Guest

INDIAN EXPRESS

Sand stalls
Arjun Raghunath
04 Sep 2009

Insufficient supply of river sand has hit the construction work on the Air India engineering base, which is coming up at Chakkai.The project, that was scheduled to be commissioned in 2008, is getting delayed indefinitely.

“Earlier, we used to get around ten loads of sand daily. In that place, we are now only getting one load daily over the last couple of months. This is badly affecting the progress of civil works,” said Project Manager of the engineering base, Jacob Chandy. The Salem-based Mukesh and Associates, which is carrying out the work, is now looking into the options of using artificial sand like M-Sand for the construction works.

“We have taken up the matter with the Air India officials and suggested that artificial sand could be used as an alternative for river sand,” Chandy told Express.

The restriction imposed by the Tamil Nadu Government on bringing sand to the State is said to be the reason for the insufficient supply of sand at the Air India construction site. There were reports that several loads of river sand to the State were blocked by Tamil Nadu officials at the border check-posts.

The foundation stone for the engineering base was laid by Prime Minister Manmohan Singh in November 2006. The works were scheduled to be completed in the first-quarter of 2008. But the works commenced only by April 2008 owing to the delay in handing over the land to the Air India by the State Government.

“About 75 percent of the works is complete and the project is expected to be ready for commissioning by the end of this year,” said Chandy.

The Rs 60-crore project comprises two hangars for the Boeing-737 and similar aircraft. While one hanger is meant for routine maintenance of aircraft, the other one would be used for major maintenance works.

The two hangars would be separated by a central annexe building. The component room, workshop, fire and security room, medical facilities and administrative block would be housed in the annexe building. A crane would also be installed at the engineering base.

The apron, connecting the hangars with the airport terminal building, has been designed to accommodate wide-bodied aircraft so that engineering works of those aircraft would be undertaken in a later stage.

The Air India is setting up the maintenance base in association with the Boeing. It is mainly meant for the routine maintenance of the Boeing 737-800 aircrafts, which are used by the Air India Express.

The engineering base, that is coming up at an area of 15 acres near the Chakkai ITI, would be the third maintenance base of the Air India in the country. At present, the Air India is having maintenance bases in Mumbai and Hyderabad.

Nimish · Posted: Sun Sep 06, 2009 9:26 pm Post subject:

karatecatman · Guest

Nimish · Posted: Mon Sep 07, 2009 3:31 pm Post subject:

karatecatman · Guest

me111993 · Member Joined: 04 Sep 2009 Posts: 3225 Location: MAA/AMD

I just read the interview of Mr Jadhav. Boy! he seems to be stern, either he has some plan in his mind to really give AI everything he's got or he is just trying to attract sympathy of the public by being a strong critic of AI itself!!
Well I believe, AI should shut-down a huge proportion of it's routes, operate only the profitable ones, give the grand-pa aged a/c back or lease them to a cargo company. Use the B77w's and B77L's on a majority of the international routes, which he thinks would be a gain to the airline, lease the rest until things start to stabalize. 9W leased 9 of it's 77W's and 2 A332's and earns $19mn(approx) monthly!!!
Laying off 20K staff members cannot be done immediately, the polititians would eat him alive.
Most importantly AI has to get an experienced COO at work, and follow him. AI has to gain it's lost respect by operating newer a/c and operating them on time.
Turning IC into a LCC is not a good idea, over-capacity of LCC's will only result in more losses, immediate downsizing of IC is required. Older A320's have to be retired and most importantly all leased A/C, either by AI or IC have to be given back....

Just a few views..
If I made a mistake please point, me out!!

Cheers!!

karatecatman · Guest

Thanks to source

(Being posted in all major dailies and flight magazine and forums)

Advertisement for the Post of Chief Operating Officer, NACIL.

National Aviation Company of India Ltd. (brand name Air India), National Carrier of India, which is in the business of air transportation of passenger and cargo, Headquartered in Mumbai, India with a gross turnover of approx. US$ 4 billion, invites applications from eligible candidates for appointment to the post of Chief Operating Officer (COO).

The COO who will be based in Mumbai, would be a part of the top management team and would oversee the overall operational performance of the company including interalia Engineering, Inflight, Commercial, Operations and report to the Chairman & Managing Director. He will be on contract for a period of three years extendable by two years based on performance.

The incumbent should have a minimum experience of fifteen years, be professionally qualified from a leading institute of repute, highly motivated and result-oriented with proven leadership qualities and part of the top management team of any public/private sector in India/abroad. He should be in the age group of 45-50 years. Preference would be given to those who are in the Aviation Industry or in the past had turned around performance of a large organization with manpower strength of atleast 10,000.

The compensation package will be based on cost to the company and will be negotiable based on qualification, experience in the industry and other relevant factors.

The COO would be given a Performance Linked Pay based on Key Performance Indicators (KPI) which will be determined by Management/Board.

Interested applicants may apply in a sealed envelope to the following address by 16th October, 2009 :

To: Company Secretary
National Aviation Company of India Ltd.,
Air India Building, 21st Floor,
Nariman Point, Mumbai 400 021. India.

Canvassing in any form is prohibited.

Mumbai/New Delhi
September 08, 2009

karatecatman · Guest

Thanks to source

Air India enters into Frequent Flyer Programme Partnership with Singapore Airlines

Air India has expanded its partnership with Singapore Airlines, by entering into an FFP agreement, in addition to the existing code share and interline arrangements.

The frequent flyer programme members of both airlines will now be able to earn and redeem mileage points on flights operated by each other.

Effectively, it means that members of Air India’s frequent flyer programme Flying Returns will be able to earn mileage points when they travel on Singapore Airlines network, or can choose to redeem their mileage points on Singapore Airlines, which operates to over 65 destinations in 35 countries.

Likewise, members of Singapore Airlines’ frequent flyer programme KrisFlyer, will have the option of using their miles on Air India flights or earning miles when they fly on Air India.

“Air India is pleased to enlarge the scope of its partnership with Singapore Airlines, which will be of immense benefit to the FFP members of the two airlines. Members will now enjoy even greater opportunities of earning and redeeming their mileage, on a single FFP membership card”, says Mr Arvind Jadhav, Chairman and Managing Director, Air India.

About Flying Returns
Flying Returns is Air India’s frequent flyer programme, established in 1994. Members can earn and redeem miles on Air India’s vast network, spanning over 62 destinations within the country and over 31 destinations overseas. Members also enjoy a host of special offers, introduced from time to time, by programme partners, which include leading hotels, credit cards, and restaurants.

Mumbai/New Delhi
September 14, 2009

***

Thanks to source
Singapore Airlines release

Singapore Airlines Expands Partnership With Air India
14 September 2009
SINGAPORE

From 15 September, frequent flyers on Singapore Airlines and Air India can enjoy greater choice and value for money, thanks to a new bilateral frequent flyer programme agreement between the two carriers.

Under the agreement, frequent flyer programme members of both airlines are able to earn and redeem miles on flights operated by either carrier. This means members of Singapore Airlines’ KrisFlyer programme can now earn KrisFlyer miles when they fly with Air India, or choose to redeem their miles for flights with the Indian carrier.

Likewise, members of Air India’s Flying Returns programme will enjoy greater choice by having the option of using their miles on Singapore Airlines flights or earning miles when they fly on Singapore Airlines.

“Singapore Airlines is pleased to welcome Air India on board. The addition of Air India as a KrisFlyer partner boosts the number of carriers we have such agreements with to 28. Those who fly frequently with Singapore Airlines and Air India now have more opportunity to increase their frequent flyer miles, and more choice in deciding how best to use their miles,” said Mr Huang Cheng Eng, Singapore Airlines’ Executive Vice President Marketing and the Regions.

Singapore Airlines operates 42 times a week to 6 destinations in India. With the inclusion of subsidiary carrier SilkAir, the Singapore Airlines route network covers 93 destinations in 38 countries.

About KrisFlyer

KrisFlyer is Singapore Airlines' frequent flyer programme. Members can redeem their miles for free flights on over 20 world-class airlines to more than 890 destinations in 160 countries. Their miles can also be redeemed for flight upgrades on Singapore Airlines and SilkAir, Singapore Airlines’ regional carrier.

About Star Alliance

The Star Alliance network was established in 1997 as the first truly global airline alliance to offer customers worldwide reach and a smooth travel experience. Star Alliance received the Air Transport World Market Leadership Award in 2008 and was voted Best Airline Alliance by Business Traveller Magazine in 2003, 2006, 2007 and 2008 and by Skytrax in 2003, 2005, 2007 and 2009. The members are Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, EGYPTAIR, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shanghai Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, Turkish Airlines, THAI, United and US Airways. Regional member carriers Adria Airways (Slovenia), Blue1 (Finland) and Croatia Airlines enhance the global network. Aegean Airlines, Air India, Brussels Airlines, Continental Airlines and TAM have been announced as future members. Overall, the Star Alliance network offers 17,000 daily flights to 916 destinations in 160 countries.

***

SQ's release is so clear, just like the airline. Look at AI!!!! Haven't even announced when it's in effect from!!!

karatecatman · Guest

www.livemint.com/2009/09/17233346/Air-India-set-to-trim-wage-bil.html?h=B
Air India set to trim wage bill, routes for equity infusion

Tarun Shukla

New Delhi: Air India—the flag carrier operated by National Aviation Co. of India Ltd (Nacil)— trying to make itself look worthy of a $1 billion (Rs4,800 crore) government equity infusion, is seeking wage cuts and pulling out of loss-making routes while making sure flights are full, and generally putting austerity ahead of prestige.

The airline, which made losses of around $1.5 billion last fiscal year, needs the government money to survive as it buys new planes to replace an ageing and depleted fleet to compete with rivals, struggles to integrate its local and international units, and needs to avoid labour strife over reducing a bloated workforce.

It has committed to undertake an overhaul of its business operations, restructure its massive Rs15,241 crore debt and raise funds through a public offering in fiscal 2011 in return for the government rescue in the form of the equity infusion.

On Thursday, Air India’s board meeting in Mumbai, which was expected to finalize wage cuts that have been strongly opposed by unions, was postponed until 23 September.

With the peak winter season ahead, the airline is focusing on tweaking its international operations by introducing new stations and removing those that aren’t economical.

“We are trying to make our (winter) schedule more revenue-oriented and contain losses,” Air India’s executive director Jitender Bhargava said.

For instance, in what will be a first for the carrier, the airline is planning to connect Washington with New Delhi and Boston with Mumbai in the winter schedule that starts in October.

Air India has new Boeing 777-200 LRs currently plying non-stop to New York from New Delhi and Mumbai daily. These services will be extended to Washington and Boston to fill up business class seats with diplomatic and business traffic. “The (aircraft) sit on the ground for eight hours, it’s better to use them as much as possible,” said an airline official, referring to the aircraft’s halt at New York’s JFK International Airport before returning to India.

“We will get two more points of traffic,” said Bhargava, adding that the plans are still being finalized and are subject to regulatory clearances.

“This idea was discussed about a year back, but no one was willing to move on it for whatever reasons. The destinations that we were looking at were Houston and Los Angeles, besides Washington,” said another airline executive, who spoke on condition of anonymity.

The move will result in a jump of 10-20% in occupancy according to surveys, the official said. Given the turnaround time, cities close to New York were targeted.

There is no direct service between India and Washington or Boston, with most American carriers offering connecting flights from their respective hubs in the US such as Delta Air Lines Inc., which flies only Mumbai-Atlanta.

“Almost all onward internal services in the US have tended to fail as cabotage is not permitted, that is, the US will not allow AI (Air India) to pick up any passengers originating in New York,” said a London-based aviation analyst, who asked not to be named as he is not authorized to speak to the media.

Another option may be to base two smaller Boeing 737s or Airbus A320s in JFK and use them to carry incoming international passengers to Washington and Boston after they clear US immigration. US carriers United Air Lines Inc. and Northwest Airlines Corp. have adopted this strategy in Tokyo for onward flights to Guam and Vietnam.

Australia’s Qantas Airways Ltd has flown Sydney-Los Angeles-New York for many years, but this is more for carrying the “Australian flag to New York” than actual commercial logic, the analyst said. Still, “no Indian carrier serves BOS (Boston Logan International Airport) or IAD (Washington Dulles International Airport), so there is a chance that it may work.”

Air India has also dropped plans to fly non-stop from New Delhi to San Francisco, which would have earned the airline status points for being one of the longest flights, but limited the carrier’s ability to make money from the route.

Air India is concerned about the US Federal Aviation Administration’s technical audit of India’s safety standards, which will be completed by the end of this year.

If there is a downgrade, no new services by Indian carriers can be started to the US. Also, according to the rules, “once placed in category II, no new code-share agreements can be allowed”.

Mint had reported in February that in a similar case, Jet Airways (India) Ltd’s code-sharing agreement permissions with United Airlines were delayed.

Air India scrapped the loss-making Chennai-Mumbai-Frankfurt cargo service on 9 September, its sole international freight flight, and plans to stick to the expansion of its goods service in the domestic market instead.

Some of Air India’s new Boeing 777 aircraft, part of a total of 111 aircraft ordered in 2005-06 from the world’s two main manufacturers, are being introduced on routes such as the New Delhi-Tokyo sector as the airline has promised to return most of its leased aircraft in yet another cost-cutting measure.

“This will be the finest product in the sector because we are using the new B777 (the one used on the New York flights),” Bhargava said. Japan Airlines Co. Ltd is the only other carrier on this route.

behramjee · Posted: Fri Sep 18, 2009 3:03 am Post subject:

Neither of the nonstop flights should be extended to BOS nor IAD because that will further increase the operational cost and the losses.

In any case, I seriously doubt that this would happen.

Best is to launch DEL-IAD nonstop 3 times per week using a B 772LR effective June 1st 2010.

Rgds
Behramjee
_________________
My website is:
http://airline-news.blogspot.com

Sandy29 · Posted: Fri Sep 18, 2009 6:53 pm Post subject:

nadarji · Member Joined: 11 Jan 2007 Posts: 305

I live in BOS too, waiting for a Gulf carrier to start flights so that TRV becomes a one-stop Smile

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

On the BOM - JFK - BOS leg, if it were started, will it be mandatory all passengers to deplane clear immigrations/customs and then proceed to the onward flight?

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

Karan69 · Member Joined: 22 Dec 2006 Posts: 1334

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

I agree that it's a terrible idea. The cost of operating a 77L from JFK to BOS or IAD for a short RT hop would be prohibitive.

But getting back to the India-JFK schedules, I looked at how SQ operate their SIN-EWR nonstop flight, a completely business oriented flight if there ever was one.

Departure from SIN at 10:40 AM, Arrival at EWR at 5:50 PM the same day. Depart EWR at 11 PM, arrive SIN at 5:50 AM the 2 days later. The flying time is about 17 -19 hours depending on the direction.

This way they keep their aircraft in EWR for only about 5 hours.

Nimish · Posted: Sat Sep 19, 2009 3:17 pm Post subject:

AI is truly a deep and mysterious airline! I wonder why they bought all those LRs if they don't know how and where to use them? I'm referring to the "decision" to drop a DEL-SFO routing (which by itself I have no complaint with), and then leaving their only ULH routes as DEL/BOM-JFK - which CO happily flies with regular 772s. In fact even AI's 77Ws can easily make these sectors and hence it seems like AI did not really need any 77Ls.

When will AI start thinking?
_________________
We miss you Nalini!

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

airindia787 · Member Joined: 18 Nov 2007 Posts: 770 Location: DAB & ZTF

When Delta was operating the 77E on the JFK-BOM route, whenever the jet stream was strong they would have to make a refueling stop, usually in LGW. CO also faces this problem on their BOM flight. The 77E has much less problems making DEL from NYC.

AI has occasionally subbed a 77W on the DEL-JFK flight, but the 77W is a stretch for the BOM-JFK flight.
_________________
http://openflights.org/user/akumanduri

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

From my understanding, any payload restrictions on a BOM-JFK 77W would be in terms of cargo. A 77W can take a near full complement of pax and baggage on a BOM-JFK flight (based on AI's config.) but it would take a penalty w.r.t. cargo.

Given that the 77L has a smaller cargo payload than the 77W, the choice of a 77L or a 77W can be considered a tossup on this route, assuming that the 77W can be filled to at least a break even load factor with a healthy yield. Given the competition on this route, this may be a problem, and hence the 77L may actually have been the better choice.

Also, hasn't AI ordered up to 28 787s? Where the hell will they fly them to?

Currently the A310s fly to: PVG (4w), HKG (daily) with a 3 weekly extension to KIX, NBO (3 w), and a few Gulf runs. The routes that used to be flown with A310s (SIN, KUL, DXB, etc.) are now operated with narrowbodies. AI better come up with ideas on how to use the 787s.

Nimish · Posted: Sat Sep 19, 2009 10:35 pm Post subject:

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

On another note, my parents just arrived in the US on AI 191, the BOM-FRA-EWR 77W flight, and once again said that the AI's service in J Class was excellent.

They said that the airline has a turndown service after departure from BOM, and that the cabin crew were very hospitable. Give my dad's advanced age, the FAs helped him operate the IFE, found just what he liked, and pampered him throughout the flight.

J class had a very light load. Only about 8 pax from FRA to EWR. About 50% from BOM to FRA.

iah87 · Member Joined: 17 Apr 2007 Posts: 2566

behramjee · Posted: Sun Sep 20, 2009 2:40 am Post subject:

The_Goat · Posted: Sun Sep 20, 2009 3:02 am Post subject:

behramjee · Posted: Sun Sep 20, 2009 9:25 am Post subject:

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

Spiderguy252 · Posted: Sun Sep 20, 2009 10:28 am Post subject:

Actually AI ordered 27 787s not 28. But Boeing may offer another 787 as compensation. (or a 77F)
_________________
Yeah.

The_Goat · Posted: Sun Sep 20, 2009 2:53 pm Post subject:

Spiderguy252 · Posted: Sun Sep 20, 2009 4:48 pm Post subject:

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

Nimish · Posted: Mon Sep 21, 2009 5:56 pm Post subject:

From: http://www.businessworld.in/bw/2009_09_12_Maharajas_Rich_Subjects.html

Maharaja’s Rich Subjects
Not only is Air India overstaffed, some of its officials are overpaid — 5 per cent hog a fourth of the wage bill

karatecatman · Guest

OUTLOOK

Pranab Reviews Air India Makeover Plan
New Delhi
Sep 21, 2009

With Air India seeking a Rs 5,000-crore bailout package from the government, Finance Minister Pranab Mukherjee today reviewed the turnaround plan of the national carrier, including the steps it was taking to cut costs and improve savings.

Mukherjee was briefed on the issue by Civil Aviation Secretary M Madhavan Nambiar and Air India CMD Arvind Jadhav at a meeting in his North Block office, official sources said.

The Finance Minister is understood to have made it clear that any government assistance to the national carrier would come only after it took concrete measures to reduce flab and costs. He reiterated the position that the airline should take more initiatives to cut costs and enhance savings.

In this context, it was also pointed out that on an average a pilot of Jet Airways earned about Rs two lakh a month, whereas their Air India counterparts got between Rs 3-4 lakh which included the productivity-linked incentives, informed sources said.

The meeting came as the Civil Aviation Ministry started work on preparing a note for the Union Cabinet on a package for Air India, including infusion of additional equity and a soft loan to overcome its present crisis.

The Air India Board is expected to meet on Wednesday following which Jadhav is likely to address employees on the urgent need to tighten their belts.

karatecatman · Guest

www.business-standard.com/india/news/ai-to-convert-5-airbuses-into-low-cost-carriers/370874/
AI to convert 5 Airbuses into low-cost carriers

Mihir Mishra
New Delhi September 22, 2009

Launch on 10 sectors in the winter schedule.

The National Aviation Company Ltd (Nacil), which runs state-owned Air India, is planning to convert five of its Airbus 320 planes into low-cost carriers under the Air India Express brand. The launches would be in the winter schedule and on 10 sectors.

A normal A320 has 124 economy class seats and 20 J-class seats. After the conversion, making it a full economy class plane, the number of seats increases to 168.

These converted aircraft, say sources, would fly on 10 sectors. These include flights to Sharjah from Hyderabad, Cochin, Trivandrum, Amritsar and Lucknow, Calicut-Dubai, Chennai-Kuala Lumpur, and Chennai-Colombo. An Air India spokesperson said the routes would be decided next week.

However, industry sources say Calicut-Dubai and Chennai-Colombo are routes where there is a demand for business class. Business class flyers account for 12 per cent of the revenue and many say the strategy to move more and more aircraft into a single configuration could have an adverse impact on the company’s total revenues from these flights.

A-I Express operates 193 weekly flights to 14 international destinations – Dubai, Sharjah, Abu Dhabi, Al Ain, Muscat, Salalah, Singapore, Kuala Lumpur, Bangkok, Bahrain, Doha, Kuwait, Colombo and Dhaka from 17 Indian cities.

Nacil had losses of Rs 5,000 crore on its books by the end of March 2009. It had also announced that it would launch A-I Express flights on the domestic routes. The launch was to happen in September, which has been deferred to October. The airline has debt of Rs 16,000 crore — Rs 10,000 crore high-cost debt and Rs 6,000 crore low-cost debt — and has requested the government to provide a letter of comfort to convert the high-cost debt to low-cost. The government has asked the airline to aggressively reduce costs and it may receive an equity infusion of Rs 2,000 crore by this year-end.

The airline had also ordered 111 aircraft (68 from Boeing and 43 from Airbus) to augment its fleet. The orders include eight B777-200LRs, 15 B777-300ERs, 27 B787 Dreamliners, 18 B737-800s, 19 A319s, 20 A321s and four A320s. Out of which the airline has received deliveries of 24 Boeing (five B777-200LRs, five B777-300ERs and 15 B737-800s) and 21 Airbus (12 A321s and nine A319s).

Figures need rechecking. Lots of errors. Confused