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Air India turnaround plan
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karatecatman
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PostPosted: Thu Nov 19, 2009 9:51 pm    Post subject: Reply with quote

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/Indian-Airlines-employees-demand-demerger-from-Air-India/articleshow/5248235.cms
Indian Airlines employees demand demerger from Air India

19 Nov 2009
PTI

KOLKATA: Members of six employees' associations of the erstwhile Indian Airlines, which was merged with Air India two years ago, today brought out a rally at the airport here demanding regularisation of their salary and demerger from Air India.

About 1,500 employees of various departments took part in the rally, leaders of the associations said.

Eastern Regional Secretary of Air Corporation Employees Union, Samir Mandal, said they were demanding regularisation of salary and demerger of Air India and Indian Airlines.

The financial strength of Indian Airlines went down following the merger in August 2007, and that was why their salaries were not regular, he said.

The rally, however, did not have any effect in flight operation as it was taken out during tiffin time, airport sources said.
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avbuff
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PostPosted: Thu Nov 19, 2009 9:55 pm    Post subject: Reply with quote

Why do two govt owned airlines using the tax payers money want to compete with each other? ( See: MAA - SIN/MAA - KUL/DEL - DXB et al)

This is ridiculous.
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Phadnis
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PostPosted: Fri Nov 20, 2009 8:10 am    Post subject: Reply with quote

Allow me to play devil's advocate here

How 'bout I propose that Air India is not remotely funded by taxpayer money?

It is both simplistic and naive to assume that government revenue is accrued only through taxation. The Government of India's non-tax receipts for the 2009 Budget would show you that the Government's non-tax revenue is enough to bankroll Air India many times over Wink

Let's just say that these are the Government's discretionary expenses, which it wishes to expedite with money it has earned from sources other than the taxpayer. You (not you specifically, Ojas, you don't even pay taxes to the Indian Revenue Service!) get all the government services you want in return for the money you pay to the government by way of taxes, and the government may then choose to do whatever it wishes with its own, non-tax receipts - funding Air India, for example!

So please, can some forum members stop pretending to be burdened, taxpaying martyrs for the 'useless' Air India's funding cause and get to grips with my (twisted Smile ) logic? Perhaps Air India has never run on taxpayer money! Just assume that it has always been funded by money that the government earns from sources other than the common man of India. God, I'm loving this new idea of mine Very Happy

Of course, I do agree with Ojas on the weird routing issue to some extent, but look at it the glass-half-full way - that weird routing may not be funded by our money. In any case, it is funny to note that the members who crib and whine the most about "AI-takes-my-money" are the members who most probably don't pay taxes to the Indian Revenue Service at all (the DC whizkid Sitlani and our Puneri-Qatari-Floridan posterboy Ojas). Just a curious observation. Although everyone's favourite faux-socialist ideologue Guptaji is another one given to considerable whining on the issue.

All said and done, good to be back on the forum after a couple of weeks off after being 'banned' by the peerlessly incompetent Nimish (who, I believe, has quite a fan following on the forum these days!) and his poor, deluded sidekick Johri. Is there no accountability for the arbitrary, highhanded, biased, draconian and essentially ridiculous manner in which some moderators act on this forum Rolling Eyes
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sammyk
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PostPosted: Fri Nov 20, 2009 8:21 am    Post subject: Reply with quote

In this day and age why is the government even in the airline business? Governments should concentrate on governing, not running businesses and competing with private enterprise. If they want a level of control for industries then create regulatory agencies and hire thousands of people to work for them. Then they can have their cake and eat it too.
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Phadnis
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PostPosted: Fri Nov 20, 2009 8:51 am    Post subject: Reply with quote

sammyk wrote:
In this day and age why is the government even in the airline business? Governments should concentrate on governing, not running businesses and competing with private enterprise. If they want a level of control for industries then create regulatory agencies and hire thousands of people to work for them. Then they can have their cake and eat it too.


Of course that can be debated, sammyk.

All I am saying is that the whole "I'm-an-honest-taxpayer-and-that-evil-Air-India-is-screwing-me" argument isn't necessarily correct just because it sounds nice and makes the whiner feel like a martyr Rolling Eyes
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sammyk
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PostPosted: Fri Nov 20, 2009 9:02 am    Post subject: Reply with quote

Well I figure the whole taxpayer thing is more figurative than literal.

If one assumes that the government is for the people than any money the government makes, regardless of whether it comes from the taxpayer or otherwise is the peoples money. Therefore, the government should not simply spend/waste it any way it wishes and it should be in the full interest of the Indian citizen. I'm sure you can agree that propping up a failing airline (or any other business) is most certainly not in the interest of the Indian citizen.
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avbuff
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PostPosted: Fri Nov 20, 2009 9:03 am    Post subject: Reply with quote

Phadnis wrote:
Allow me to play devil's advocate here


So advocating yourself?

Phadnis wrote:
Of course, I do agree with Ojas on the weird routing issue to some extent, but look at it the glass-half-full way - that weird routing may not be funded by our money. In any case, it is funny to note that the members who crib and whine the most about "AI-takes-my-money" are the members who most probably don't pay taxes to the Indian Revenue Service at all (the DC whizkid Sitlani and our Puneri-Qatari-Floridan posterboy Ojas)


Now since you have wasted enough time on researching on our backgrounds, you should have known that myself and my family are Tax payers in India.

Now of course there is a lot of money being wasted on Air India its employees and their families, by whatever corrupt measures possible. The Govt. has failed spectacularly to run an airline validated by every possible way.

By following these basic measures one can at least ensure some revival of AI, but of course you will have all sorts of useless arguments to defend the inaction.


Last edited by avbuff on Fri Nov 20, 2009 9:56 am; edited 1 time in total
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Phadnis
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PostPosted: Fri Nov 20, 2009 9:16 am    Post subject: Reply with quote

sammyk wrote:
Well I figure the whole taxpayer thing is more figurative than literal.

If one assumes that the government is for the people than any money the government makes, regardless of whether it comes from the taxpayer or otherwise is the peoples money. Therefore, the government should not simply spend/waste it any way it wishes and it should be in the full interest of the Indian citizen. I'm sure you can agree that propping up a failing airline (or any other business) is most certainly not in the interest of the Indian citizen.


Indeed.

However, as I said in my post on another topic, India's problems don't exist because the government lacks adequate resources to solve them. If that was the case, I might have agreed with you about taking AI off life support. But that is not the case by a considerable stretch of imagination.

Raising funds has never been a problem for the government, and, in all probability, never will be. Freeing up the money currently keeping Air India alive will merely send that money towards other havens of corruption and money-laundering, and very little of it will trickle down to the people, or feed the 410 million starving folks or something equally romantic and fanciful.

And by the way, assuming you were really in desperate need of money, why not start off by selling off the President's little bungalow on Raisina Hill? Surely the hopelessly incompetent Pratibha Patil doesn't need 340 rooms and vast lawns and gardens consuming acres of prime New Delhi real estate to survive? I'm sure we'd earn a bit of money from that one Wink
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Phadnis
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PostPosted: Fri Nov 20, 2009 9:30 am    Post subject: Reply with quote

avbuff wrote:


So advocating your yourself?

Now since you have wasted enough time on researching on our backgrounds, you should have known that myself and my family are Tax payers in India.

Now of course there is a lot of money being wasted on Air India its employees and their families, by whatever corrupt measures possible. The Govt. has failed spectacularly to run an airline validated by every possible way.

By following these basic measures one can at least ensure some revival of AI, but of course you will have all sorts of useless arguments to defend the inaction.


Researching your background, Oj? Wherever did you get that fanciful notion from? Why on earth would I research your background? All this is information that you have provided me willingly - entirely of your own accord. Allow me to assure you that the prospect of reading up about you doesn't appeal to me in the slightest, so please excuse my complete ignorance of your family and its tax records Rolling Eyes
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sammyk
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PostPosted: Fri Nov 20, 2009 9:38 am    Post subject: Reply with quote

Phadnis wrote:

Indeed.

However, as I said in my post on another topic, India's problems don't exist because the government lacks adequate resources to solve them. If that was the case, I might have agreed with you about taking AI off life support. But that is not the case by a considerable stretch of imagination.

Raising funds has never been a problem for the government, and, in all probability, never will be. Freeing up the money currently keeping Air India alive will merely send that money towards other havens of corruption and money-laundering, and very little of it will trickle down to the people, or feed the 410 million starving folks or something equally romantic and fanciful.


I never said India's other problems have any relation to Air India. That is someone elses argument you are blending with mine.

Just because the money being pissed away on AI won't reach the starving millions is no reason to continue pissing way money.
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jasepl
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PostPosted: Fri Nov 20, 2009 10:46 am    Post subject: Reply with quote

Air India serves no essential purpose. None at all. From no angle. Searching for a valid reason for AI to continue existing is like looking in a dark cellar, at midnight, for a black cat, that isn’t there.

There are many alternatives to AI today, and every single one of them is a million times better and a million times more efficient.

Air India is not an indispensable colossus like the railways, where state involvement and funding is required under all circumstances, regardless of the cost. If the railways were to disappear tomorrow, the country will grind to a halt. If AI were to vanish tomorrow (and I hope every day it does), it will make no real noticeable difference, and others (ie: those not funded by taxpayer money) will quickly pick up the slack.

The only ones really impacted by AI’s hopeful death will be the netas and the employees: both groups will lament the disappearance of their free ride.

The netas can suck it; they will find other ways anyway. The employees and their friends and families, well, even if they were all paid off and sent into early retirement everyone will be better off. That way, the employees get paid for doing sweet FA (compared to turning up to work and then doing sweet FA). And they’re free to look for other employment should they wish. The taxpayers, and, consequently, the nation will be better off because all the thousands and thousands of crores of perfectly good money will no longer have to be thrown to artificially prop up a failed, purposeless entity. I’d rather it be flushed down the drain or stuffed in an account in Switzerland.
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karatecatman
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PostPosted: Fri Nov 20, 2009 1:13 pm    Post subject: Reply with quote

INDIAN EXPRESS
Maharaja needs a makeover, Air India calls in 12 agencies

Nov 20, 2009

As loss-hit Air India plans to rebrand itself, it may end up with a more business-like avatar of its mascot, the Maharaja — a royal in striped turban and red tunic. Since the government has asked the company to cut flab on all sides, it can no longer afford to retain its pot-bellied, elite mascot. The Maharaja may shed not only some weight, but also its trademark handlebar moustaches and royal turban. Instead, it may appear in a business suit — quite appropriate for an erstwhile fat-cat PSU trying hard to get leaner and meaner.


To align its brand with its greatly reduced circumstances, Air India has invited communication strategy proposals from 12 short-listed advertising agencies. Some of the country’s top names — RK Swamy BBDO, FCB Ulka, Lowe Lintas and Grey — are in the running to make over the 63-year-old Maharaja.


“The mascot’s popularity started declining two years ago when the airline stopped using it as its spokesperson. At that time, many within the organisation questioned the relevance of continuing with Maharaja as the mascot,” says Jitender Bhargav, executive director, corporate communications. The merger of two state-owned carriers, Air India and Indian Airlines, gave another reason for the makeover of the mascot, he says. Earlier, Air India and Indian Airlines had separate communication strategies, each having four-six advertising agencies on its panel.
In presentations made to the airline recently, some of the advertising agencies said that the Maharaja had outlived its utility and should die a natural death. While some agencies did not focus on the makeover of the Maharaja, others recommended a hip, leaner and a more contemporary avatar. “Whether Maharaja is adding value to the brand can only be determined through a dipstick survey or research. But the question the new communication strategy will have to address is: if Maharaja is retained, will it help regain lost revenue share?” says an Air India official.


Many a time, Maharaja is perceived as representing a bloated public sector ‘government’ undertaking with aging fleet, says an advertising analyst. “The Maharaja has come to symbolise VIP treatment, heritage and legacy. He needs to be infused with life. Bring in more excitement, maybe a designer suit,” says K V Sridhar, national creative director, Leo Burnett. “With over 50 per cent of the total fleet being brand new, this brand revamping exercise should reflect the changes in terms of our new fleet and the merged character of the carrier, and help shed the ‘PSU’ tag,” says an official.



Look like a Mantri? Wink Too many experts and advisors. This is just like the number of applications for the COO post. Is believed to be running upto 170+ and from ex and serving CEOs of a number of airline and aviation agencies.
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PostPosted: Fri Nov 20, 2009 1:28 pm    Post subject: Reply with quote

INDIAN EXPRESS
Mamta Todi
20 Nov 2009

AI pilots up in arms against Patel, Jadhav
CHENNAI: The Minister of Civil Aviation Praful Patel and Air India chief Arvind Jadhav seem to be in trouble with pilots urging President Pratibha Patil to initiate an enquiry against both for `actively conniving’ with vested interests to shut down the airline which would ultimately benefit private carriers.

The pilot members of the Indian Commercial Pilot’s Association (ICPA) and senior executive pilots had carried out a protest march in New Delhi on Thursday from Jantar Mantar to Parliament after which three representatives _ Capt Shailendar Singh, Capt V K Bhalla and Capt Shiraz Faroqui _ represented their case to Parliament officials.

In the representation, ICPA has literally laid a charge sheet against Patel and Jadhav accusing them of acting in an autocratic manner and taking many anti-employee decisions which have ultimately demoralised the staff and paved the way for the fall of the airline.
“Mr. Patel has carried out his pre-planned assault on AI and IA by forcing AI to increase its fleet order through a completely unjustified sale and lease back process of fully depreciated aircraft of AI and IA and robbing AI and IA of their land assets in Mumbai and Delhi apart from giving foreign airlines a disproportionate access in the Indian market,” pilots alleged in the letter.

“In his last six months of tenure, Jadhav has actually not taken any decision or fructified any project of real importance. No attempt has been made to reorient the network to lessen the bleed. But he keeps on charging that the employees are responsible,” the union pilots alleged.
The pilots further charged that Jadhav had acted in isolation from day one. “Senior directors have been publicly humiliated by Jadhav, who has either reversed their administrative decisions or held them in abeyance.”

As all talks about turnaround has taken place without taking senior managers on board, no concrete plan is in place till date; or if there is, it has not been shared with the senior managers. He also took unilateral decisions to defer payment of salaries and to cut Performance Linked Incentive (PLI) of employees without taking into account the impact of such moves on employee morale,” they said in the letter. Plea by senior directors and managers against this decision fell on deaf years, they contended.
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karatecatman
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PostPosted: Fri Nov 20, 2009 1:35 pm    Post subject: Reply with quote

Thanks to source

Financial and organizational restructuring Plan of Air India -

Presented in the Lok Sabha --- November 20, 2009

LOK SABHA



The financial and organizational restructuring Plan for Air India focuses on operational efficiency, product improvement and organization building. The plan envisages manpower cost rationalization, fuel management, route profitability enhancement and non-traffic revenue enhancement.



The Minister of Civil Aviation, Shri Praful Patel informed the Lok Sabha today that the NACIL has taken the following initiatives to turnaround the performance of the company and is mainly focused on cost Reduction (Target of Rs.1500 crores) and Revenue Enhancement (Target of Rs.1200 crores). The details of the plan are given below:



(A) Cost Reduction



· Rationalization of loss making routes both on the domestic and international sector.

· Rationalization of meal uplifts at domestic and foreign stations.

· Reduction of contractual employment and outsourcing of work.

· Rationalization of man power at Indian and Foreign Stations by closure of certain offices.

· Return of aircraft on lease.

· Study on fuel efficiency Gap Analysis under which IATA has been appointed to make an in depth study of the Fuel Efficiencies at various levels. The recommendations made by IATA are being considered at the highest level by a Strategic Group and are at various stages of implementation. These measures include reduction of the weight of the aircraft, following a cost index prescribed by IATA both on domestic and international routes, implementation of a computerized Flight Planning & Power Units, optimization of reserve fuel carried on board etc.

· Rationalization of wage agreements including PLI Scheme.





(B) Revenue Enhancement



· Increase in Passenger Revenue through improved marketing initiatives.

· Increase in Cargo Revenue through better utilization of belly space on line flights and cargo freighters.

· Initiative for on board revenue.

· Increase in excess baggage revenue.

· Entrusting Engine MRO/Line Maintenance to a separate Strategic Business Unit resulting in better utilization of capacity and optimum utilization of manpower resources.

· Alternative use of properties.

· Aviation Training Services.



NACIL is reviewing its network strategy with an objective to improve the overall economics of operations with the help of experts. During the past one year or so, NACIL has withdrawn flights on the following International and Domestic routes: Amritsar-Birmingham, Delhi-Los Angeles, Mumbai-Dar-E-Sallam, Delhi-Seoul, Mumbai-Seoul, Ahmedabad-Sharjah, Chennai-Bangkok, Hyderabad-Bangkok, Nagpur-Bangkok, Guwahati-Bangkok, Delhi-Kuala Lumpur, Bangalore-Sharjah, Delhi-Lahore, Goa-Sharjah, Chennai-Sharjah, Trichi-Doha-Calicut, Calicut-Kuwait, Calicut-Muscat, Cochin-Muscat, Ahmedabad-Kolkata, Ahmedabad-Jaipur, Mumbai-Vadodara, Hyderabad-Nagpur, Calicut-Chennai and Trivandrum-Trichi.



The Minister also informed that NACIL has decided to rationalize IC coded services and IX coded services (Air India Express) on Kerala-Gulf routes by withdrawing the IC coded services and substituting these with IX coded services as the revenue earned on IC coded services on these routes have not been adequate even to cover the cash cost of operations, while, the low cost flights operated under IX code have given operating surpluses. This is aimed at improving the overall profitability of NACIL. However, the restructuring would result in an increase in the seats offered by NACIL on the Kerala-Gulf routes from 26100 seats per week in summer 2009 schedule to 26400 seats per week.



In order to reduce the losses and to improve profitability of NACIL’s operations, several similar changes have been implemented to the schedule IC/AI coded services on the India-Gulf routes in order to cut back loss making routes and enhance the profitable ones. However, NACIL offered more seats now although under a single class configuration.


Air India/NACIL





Unions are planing to step up the pressure now. A second petition is being planned to President Pratibha Patil.
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karatecatman
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PostPosted: Fri Nov 20, 2009 1:42 pm    Post subject: Reply with quote

Thanks to source
Copyright

Outside Parliament


Participation by 5 major unions. Included flight and cabin crew with ground and technical staff.

And in Mumbai --silent march
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Jaysit
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PostPosted: Fri Nov 20, 2009 10:38 pm    Post subject: Reply with quote

Phadnis wrote:
Allow me to play devil's advocate here

How 'bout I propose that Air India is not remotely funded by taxpayer money?

It is both simplistic and naive to assume that government revenue is accrued only through taxation. The Government of India's non-tax receipts for the 2009 Budget would show you that the Government's non-tax revenue is enough to bankroll Air India many times over Wink

Let's just say that these are the Government's discretionary expenses, which it wishes to expedite with money it has earned from sources other than the taxpayer. You (not you specifically, Ojas, you don't even pay taxes to the Indian Revenue Service!) get all the government services you want in return for the money you pay to the government by way of taxes, and the government may then choose to do whatever it wishes with its own, non-tax receipts - funding Air India, for example!

So please, can some forum members stop pretending to be burdened, taxpaying martyrs for the 'useless' Air India's funding cause and get to grips with my (twisted Smile ) logic? Perhaps Air India has never run on taxpayer money! Just assume that it has always been funded by money that the government earns from sources other than the common man of India. God, I'm loving this new idea of mine Very Happy

Of course, I do agree with Ojas on the weird routing issue to some extent, but look at it the glass-half-full way - that weird routing may not be funded by our money. In any case, it is funny to note that the members who crib and whine the most about "AI-takes-my-money" are the members who most probably don't pay taxes to the Indian Revenue Service at all (the DC whizkid Sitlani and our Puneri-Qatari-Floridan posterboy Ojas). Just a curious observation. Although everyone's favourite faux-socialist ideologue Guptaji is another one given to considerable whining on the issue.

All said and done, good to be back on the forum after a couple of weeks off after being 'banned' by the peerlessly incompetent Nimish (who, I believe, has quite a fan following on the forum these days!) and his poor, deluded sidekick Johri. Is there no accountability for the arbitrary, highhanded, biased, draconian and essentially ridiculous manner in which some moderators act on this forum Rolling Eyes


1. Your entire premise is based on a fundamental lack of understanding of basic macroeconomics. Here are some facts to help you dispel the myths you've presented:

(a). The national exchequer does not compartmentalize revenue based on tax and non-tax revenues. Revenue is merged, irrespective of where it comes from, and tax revenues are by far the largest source of income.

(b) Public sector companies like Air India are not funded out of non-tax revenues. They're funded out of national revenues irrespective of source, and given that the overwhelming majority of this revenue IS tax revenue, AI is indeed being primarily financed on the backs of Indian tax payers.

(c) Non-tax revenues this year are primarily coming from sales of license fees from 3G auctions (about Rs. 30,000 crores), sales of national assets (state-run companies like NHPC, Ltd, Oli India Ltd netting about Rs 2,500 crores). The GOI is selling these state assets in part to cover budget deficits especially since tax revenues have been lower this year.

(d) As a larger point, it makes no damned difference how AI is funded by the GOI because the Indian national budget is ostensibly the legal property of Indian nationals. Thus, when the GOI decides to fund AI to the tune of Rs. 10,000 crores, its budgetary rupees collectively owned by Indian nationals that's being spent.

(e) Money being funneled into AI is money that could also be spent on roads, schools, clinics, hospitals and other infrastructural projects that India sorely needs. At the end of the day, India is still a poor, developing country with the world's largest population of desperately poor people. It would be one thing if AI was the only game in town, if it was just breaking even or even if its losses were primarily linked to the vagaries of the global economy. They're not. AI's losses result from its wretched financial mismanagement, its bloated workforce, corruption, graft, and the fact that its become a cash cow for ministers, babus, and petty managers within the airline.

(f) As a non-resident Indian, I have significant assets in India (property, stocks, shares, business interests) on which I pay taxes to the Indian government. We live in a global economy. Perhaps, that is a new concept to you. Moreover, I have friends and family in India who also pay taxes, and I'm also deeply concerned about how India manages its budget. India's financial state and the diminishing of its poverty are concerns shared by Indian residents, non-residents as well as the larger global community with no ethnic connections to India.

Finally, a word of advice. Insulting the moderators who've just terminated your exile and allowed your posts is never a good idea. It may send you right back to exile. Also, I suggest you don't ever present your nonsensical arguments to an economist. He/she would laugh in your face.

Hope I have succeeded somewhat in educating you.

You're welcome.
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PostPosted: Sat Nov 21, 2009 12:01 am    Post subject: Reply with quote

Air India offers 20 pc discount to senior citizens
STAFF WRITER

Mumbai, Nov 20 (PTI) In a bid to woo more customers to its first and executive classes on international routes, national air-carrier, Air India, has offered a 20 per cent discount to senior citizens.

Senior citizens (65-years and above), are now eligible for a 20 per cent discount for travel in first and executive classes on international flights, an Air India press release said today.

The discount offer, however, is available only on tickets purchased from the airline's reservation offices in India and on the basic fare of market fares.

The special discounted fares will be valid for out-bound travel commencing on or before March 31 next year, it said.

Besides, the discount could be availed only on Air India and erswthile Indian Airlines' tickets and would be not be applicable on code-share flights, it said
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karatecatman
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PostPosted: Sat Nov 21, 2009 12:03 am    Post subject: Reply with quote

Air India pilots adamant on strike as talks falter news

20 November 2009
The chances of averting a fresh and widespread strike planned by pilots and other employees of national carrier Air India on 24 November looked bleaker, as there was no breakthrough in talks between Air India staff and management till Friday.

About 32,000 employees, including pilots, members of the Air Corporation Employees' Union, the Indian Airlines Technicians' Union, and the Indian Airlines Officers' Association, are likely to suspend work indefinitely from 24 November.

With the fog season approaching and Air India having the largest fleet of CAT-III B compatible aircraft and pilots trained to land in such conditions, this could spell major trouble for travellers.

The pilot body, which demonstrated at Jantar Mantar and later at Indira Gandhi International Airport's terminal 1A in New Delhi on Thursday morning, was supported by several other employees of IA.

Demanding that Air India CMD Arvind Jadhav be sacked for "not taking corrective action to help the airline recover from its loss making position'', the Indian Commercial Pilots' Association marched to Parliament House to stage a demonstration.

"The company was doing fine before the merger and the management made a mess of the whole thing. Now that they claim to have realised the problem, why are they not doing anything to solve the issue? Our main focus for the protest has been the terrible management of the airlines because of which it is in this condition,'' said Capt R S Otaal, general secretary of ICPA.

Pilots have been asking for their dues for the past two months, including their performance-linked incentives, which form a major chunk of their monthly salary. They are also asking for pay parity between pilots of AI and those of the erstwhile Indian Airlines, which was merged with IA recently.

In no temper to have further talks with the management, the ICPA is going to meet the chief labour commissioner on Friday for a last attempt at sorting out the issue. The last meeting between them ended inconclusively. "We are not very confident that anything will come out of this. The management is refusing to take our demands into consideration and we are left with no option but to go on strike,'' said Otaal.

Sources said the ministry of civil aviation was now in the process initiating dialogue with the protesting parties.

"We do not want to go on strike. But now that the government is holding us (the employees) responsible for the crisis, our patience is running out. If we do not get a response from the management now, we will be forced to go on strike from 24 November, as decided," president of the ICPA, Capt Shailendra Singh, said.


Strike now pushed back to Nov. 30, if talks fail.
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Jaysit
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PostPosted: Sat Nov 21, 2009 3:16 am    Post subject: Reply with quote

So by the looks of it, what's being proposed is the following:

1. Cut at least one of the two JFK nonstops (a foolish decision IMHO because the economy WILL spring back and then AI will have given away market share to the Gulf carriers - but then what's new?)
2. Turn over all Gulf routes to AI Express.
3. Suspend unprofitable routes (that just about covers everything other than MAA-KUL and Kerala/BOM-RUH/JED).

Not much talk about standardizing AI's narrow body fleet with the A320 family, or combining all those ridiculous flights that leave within seconds off each other for the same destination just because AI and IC just have to have their own metal operating (because, well, that's the way it was done in 1992).
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avbuff
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PostPosted: Sat Nov 21, 2009 3:34 am    Post subject: Reply with quote

An elaborate check on the GDS confirms that AI has lost significant amount of bookings on the US - India sector thanks to the news of the strike floating around.

The average public of the USA run on a tight schedule and would rather opt for other carriers than risking it out on AI.

Whether the strike goes ahead or not, but if "pleasantries" between the management and staff continue, expect a drastic cancellations in December. The revenues generated in December and January subsidizes the low loads in February, March and other lean times in October etc.

But then if the Govt. just is not interested in sorting things out, all we need to do is stay calm and watch AI die ( which is painful to see).
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tayaramecanici
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PostPosted: Sat Nov 21, 2009 7:56 am    Post subject: Reply with quote

avbuff wrote:

But then if the Govt. just is not interested in sorting things out, all we need to do is stay calm and watch AI die ( which is painful to see).......

..........and see the rise of 9W / IT Duopoly take its place.

This just sucks.........isn't there any hope for Indian aviation. Can the mods create a sticky thread which could bounce ideas to create a enviournment for debate within India on Aviation.

Scores of Indian youth are spilling out of Flying schools, Hostie academies, Engg colleges etc only to find that there are no jobs avail in India and to make matters worse the top 4 airlines in India are burning cash like there is no tomorrow whereas middle-eastern and EU airlines are milking the Indian travellers.

I must have mentioned this about raising the debate thru this forum many a times, lets try to put our wisdom to practice.
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Phadnis
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PostPosted: Sat Nov 21, 2009 11:34 am    Post subject: Reply with quote

Jaysit wrote:
Copious amounts of garbage typed out by Jay


My goodness Jay, "a fundamental lack of understanding of macroeconomics", is it Shocked I posited the above theory after discussing it in general conversation with a gentleman who is a Commisioner of Income Tax (working now as a judge for the IRS) and a lady who is a senior agricultural planning economist working with the Reserve Bank of India who was educated at the London School of.......drum roll.......Economics! Probably one of the most reputed institutions going around in the field Wink

As I have said before, in the vast majority of cases pertaining to government expenditure in India, the money has been available more often than not. It is merely the way the system is conceptualized today, that the money seems to disappear into a cesspool of corruption and mismanagement. Hey hang on! I'll quote you here - development stumbles in India because the government cannot work efficiently with "its bloated workforce, corruption, graft, and the fact that its become a cash cow for ministers, babus". So turning off the Air India life support will merely free up ungodly amounts of money which a handful of Madhu Kodas will swallow up faster than you can say 'Jaysit'.

Funnily enough, I am also perfectly aware that the 'national exchequer' does not compertmentalize revenue or keep his treasure in big chests labelled "earned from screwing taxpayers" and "earned from sources other than screwed taxpayers". All I said was that you could assume this to be so to save yourself a lot of heartburn about how your Indian brethren were going to sleep with ominously rumbling tummies because wicked Air India was nicking all the food from their tables. Moreover, I am also aware that much of the non-tax revenue raised this year was thanks to the navratna PSUs etc. but considerable revenue is also generated by dividends from the government's investments within India and abroad. In any case, revenue from non-tax receipts may amount to 15% of the overall receipts, so I reckon that's more than enough to fund Air India. Because pouring more money into 'development' merely makes the dubiously rich dubiously richer, while the screwed poor remain...well, screwed and poor. Why, instead of questioning the way the government uses its funds, would you shut down a whole airline to free up money, where you have no idea where the damn money's going!

I think it's perfectly fair that the government should pour money into Air India. Air India was a fine airline until the government came and screwed it. Nearly all its problems are of the government's making, thereafter compounded by employee apathy. Now it's the government's bloody responsibility to help it get back on its feet. You may not like that logic, but since no one really cares about your opinion, I think that's quite alright as it stands.

Tell me, my dear Jay, if your heart burns so much for good ol' Indyeah, why on earth don't you come and stay here and work for the betterment of the people? "Oh yes, I love India and down with evil Air India and power to the people and all that jazz, but yuck! who wants to live in all that filth in that smelly third-world dump" eh! Much better to keep mewling from the Capitol Rolling Eyes

Among other things, my dear, you need a sense of humour. Urgently!

As for your 'advice' about the ridiculous moderators on this forum, I would be grateful if you kept it to yourself - I'm sure you know where to stick it Wink I fail to see why I should lick their shoes the way you do. If the moderators are inept and incompetent, I shall be quite frank and forthright with my views and will tell them that they are inept and incompetent. Remember, I do not intend to say that all mods on this forum are fruitcakes, but some undoubtedly are.
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Jaysit
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PostPosted: Sat Nov 21, 2009 11:45 pm    Post subject: Reply with quote

avbuff wrote:
An elaborate check on the GDS confirms that AI has lost significant amount of bookings on the US - India sector thanks to the news of the strike floating around.


That's really unfortunate given that we're coming to the high travel season, and given that of all AI's routes, its US routes are now being served by brand new planes that also come with very high standards of service. It's almost like AI just can't win. If its not one thing, then its another.

My folks were supposed to head back to BOM on AI's EWR flight in mid-December, but have pushed their return flight back to the first week of Jan. When we asked AI about any possible strike, first they acted surprised, then they said no strike will happen, then the AI spokesperson said "don't worry, we will put you on Jet Airways Business Class if that happens." When I said that Jet Airways was going full in December/Jan, they said "oh, don't worry, we'll put you on Kuwait Airways." When I said we didn't pay good money to fly KU, he said, "don't worry, these pilots talk about strikes all the time, but nothing happens."
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stealthpilot
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PostPosted: Sun Nov 22, 2009 3:38 pm    Post subject: Reply with quote

Phadnis wrote:
It is both simplistic and naive to assume that government revenue is accrued only through taxation. The Government of India's non-tax receipts for the 2009 Budget would show you that the Government's non-tax revenue is enough to bankroll Air India many times over Wink

Let's just say that these are the Government's discretionary expenses, which it wishes to expedite with money it has earned from sources other than the taxpayer. You (not you specifically, Ojas, you don't even pay taxes to the Indian Revenue Service!) get all the government services you want in return for the money you pay to the government by way of taxes, and the government may then choose to do whatever it wishes with its own, non-tax receipts - funding Air India, for example!


The underlying difference of opinion here is that you think it’s perfectly acceptable if the administration can choose to do whatever it wishes with its own non-tax receipts. Most people on this forum disagree

It doesn’t make a difference to me whether Air India is funded by (a) my income tax (b) the educational/flood relief cess (c) interest from wherever (d) or even selling Bharat Secondary National Seed and Fertilizer Corporation. At the end of the day it’s revenue which can be spent in better ways. PSUs are not funded by distinct tax revenue corpuses or non tax revenue, its just revenue.
You may argue that the money will get siphoned off anyway and that’s true but not really grounds to turn a blind eye to the wastage of AI.
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Jaysit
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PostPosted: Mon Nov 23, 2009 4:15 am    Post subject: Reply with quote

stealthpilot wrote:
PSUs are not funded by distinct tax revenue corpuses or non tax revenue, its just revenue.


Exactly, but even a concept as basic as this one eludes that poor child, even after its been repeated ad infinitum by others.

In any case, back to AI's turnaround plan.

Does anyone know what the breakdown is among AI's divisions with respect to employees, aircraft, annual and cumulative losses? Also, how large are the losses for each of AI and IC's domestic and international operations? I'm assuming that NACIL still computes its financial data separately for each of its three divisions - AI, IC and AIX regardless of the supposed "merger." Given the recent change of domestic flight codes from IC to AI on some routes, codeshares on others, perhaps such an easy delineation isn't even possible anymore.
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circleglobe
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PostPosted: Mon Nov 23, 2009 6:51 am    Post subject: Reply with quote

Jaysit wrote:
So by the looks of it, what's being proposed is the following:

1. Cut at least one of the two JFK nonstops (a foolish decision IMHO because the economy WILL spring back and then AI will have given away market share to the Gulf carriers - but then what's new?)
2. Turn over all Gulf routes to AI Express.
3. Suspend unprofitable routes (that just about covers everything other than MAA-KUL and Kerala/BOM-RUH/JED).


They may well cut one of the two daily JFK nonstops, but they could also do 5x DEL and 5x BOM (almost daily to both--a fair compromise) or a 7x/3x combination. Or they could revert to one-stop flights to JFK on larger aircraft, which would be much less costly to operate. Too bad AI has all those 77Ls to use.

On another forum someone was asking why CI operates JFK-TPE via ANC instead of nonstop on a 744, and the response was that CI can carry more passengers and more cargo and less fuel by halting at Anchorage. It works well for the high volume, low yield market that CI attracts. Regardless of the economy, US-India routes just don't generate the high yields that warrant very many nonstop flights, at least not now.

Jaysit wrote:
Not much talk about standardizing AI's narrow body fleet with the A320 family, or combining all those ridiculous flights that leave within seconds off each other for the same destination just because AI and IC just have to have their own metal operating (because, well, that's the way it was done in 1992).


Jaysit wrote:
Does one need a US visa for such a run? The flight is merely a stopover to Canada. I've flown an AI BOM-LHR-JFK-YYZ run in the early 1990s, and pax headed to YYZ didn't need US visas.


Not just AI, but everyone could benefit by moving to the present.
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Jaysit
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PostPosted: Mon Nov 23, 2009 9:13 am    Post subject: Reply with quote

circleglobe"

[quote="Jaysit wrote:
Does one need a US visa for such a run? The flight is merely a stopover to Canada. I've flown an AI BOM-LHR-JFK-YYZ run in the early 1990s, and pax headed to YYZ didn't need US visas.


Not just AI, but everyone could benefit by moving to the present.[/quote]

I think you need some valium, an attitude change, or both.

In any case, while you were (hopefully) contemplating your choices, I checked with the TSA and DOT and learned that US rules and regulations do not mandate full customs and immigration control for flights continuing on to third countries. JAL operated a NRT-JFK-GRU service until just a few years ago. In fact, a DEL-JFK-YYZ service is quite feasible, as long as AI provides TSA with a list of all pax on board with complete passport data which I believe it is mandated to do anyways. A DEL-YYZ-JFK flight wouldn't create such an issue at all.

As an aside, I second your idea of cutting back the JFK nonstops to 5 w on both the DEL and BOM sectors. CO and DL did just that on their flights, and other airlines routinely cut frequency to balance viability, profitability and market presence.
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Nimish
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PostPosted: Mon Nov 23, 2009 11:22 am    Post subject: Reply with quote

karatecatman wrote:
INDIAN EXPRESS
Maharaja needs a makeover, Air India calls in 12 agencies


I personally don't think this is the right time or place for looking at new agencies. Their current advertising campaigns - for instance introducing their Chicago flights - were pretty good.

I suspect this is just a way to line a few more pockets or a distractionary mechanism.
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PostPosted: Mon Nov 23, 2009 12:23 pm    Post subject: Reply with quote

Nimish wrote:
karatecatman wrote:
INDIAN EXPRESS
Maharaja needs a makeover, Air India calls in 12 agencies


I personally don't think this is the right time or place for looking at new agencies. Their current advertising campaigns - for instance introducing their Chicago flights - were pretty good.

I suspect this is just a way to line a few more pockets or a distractionary mechanism.



Things are going haywire. Wrong priorities and no communication with the people who matter. This is what is also driving employee anger. And all this after the fanfare of a new identity.

How many more make-overs?
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PostPosted: Mon Nov 23, 2009 2:30 pm    Post subject: Reply with quote

Update
Air India Express operations may be planned into Kathmandu.
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PostPosted: Mon Nov 23, 2009 5:42 pm    Post subject: Reply with quote

Update 1

ICPA putting up hoardings across New Delhi -- Mathura Road, Minto Road, Nizamuddin, East of Kailalsh, Punjabi Bagh and Moti Bagh. It may be done outside select Metro stations. The hoardings and banners will say "Save Air India". A few will says "Demerge". An audio-visual show is also being planned.

AI management is furious and may counter this with ads wanting to know where the money for this is coming.

ICPA says that banner campaign will run till end-Novemeber and will cost it "several lakhs of rupees".
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Aseem
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PostPosted: Mon Nov 23, 2009 5:50 pm    Post subject: Reply with quote

Jaysit wrote:

I think you need some valium, an attitude change, or both.



hey that can go personal.
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iah87
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PostPosted: Mon Nov 23, 2009 7:37 pm    Post subject: Reply with quote

I think it is time for AI management and GOI to stand firm on this latest strike threat. If there is a strike, then so be it. They should draw a line in the sand and stick to their guns.

The only thing I worry about some of the laid off workers (eventually) from AI is that they could become a security threat and try to sabotage the aircraft.

As far as CO and may be AA are concerned, they too are struggling with yields especially during non peak season on the India flights. I have many friends who work at CO and have stated that.
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Jaysit
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PostPosted: Mon Nov 23, 2009 8:51 pm    Post subject: Reply with quote

iah87 wrote:
I think it is time for AI management and GOI to stand firm on this latest strike threat. If there is a strike, then so be it. They should draw a line in the sand and stick to their guns.

The only thing I worry about some of the laid off workers (eventually) from AI is that they could become a security threat and try to sabotage the aircraft.

As far as CO and may be AA are concerned, they too are struggling with yields especially during non peak season on the India flights. I have many friends who work at CO and have stated that.


All airlines are struggling with yields during non-peak periods this past year, especially since business travel is down. Even BA is struggling on routes to the US, something unimaginable two years ago.
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Jaysit
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PostPosted: Mon Nov 23, 2009 9:06 pm    Post subject: Reply with quote

Nimish wrote:
karatecatman wrote:
INDIAN EXPRESS
Maharaja needs a makeover, Air India calls in 12 agencies


I personally don't think this is the right time or place for looking at new agencies. Their current advertising campaigns - for instance introducing their Chicago flights - were pretty good.

I suspect this is just a way to line a few more pockets or a distractionary mechanism.


They don't need more agencies. What they need is the consistent delivery of an excellent product for each of its brands - AI, IC, and AIX. The only way passengers are going to come back to this carrier is if it manages to wipe out a multi-generational 30-year dwindling reputation. Given their losses, they may as well just focus on brand and product enhancement since clearly cutting salaries, firing surplus employees, and dealing a kick to the unions are no-gos. They'll keep making losses, but at the end of the day, what's worse for the Indian flyer? A loss-making PSU that delivers a poor product, or a loss-making PSU that delivers a good product?
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me111993
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PostPosted: Mon Nov 23, 2009 10:54 pm    Post subject: Reply with quote

I agree with Jaysit's views completely here. Too much can be a overkill, viewing generally AI have got a pretty good product to offer on most of their international and some domestic routes. Some co-ordiantion amongst the emps is required. I travelled from AMD-BOM on AI and returned on 9W. AI's A321 was much better that 9W's B737-700 but it was the ground service and inflight service which was the problem then.
Positively speaking, the job for AI is half done, they have got the product to offer they just need to come together as a team and realize the reason for the merger.
If 9W can provide interline connections on BLR-DEL-BRU-YYZ-YVR then so can AI on AMD-BOM-BLR!!!
Me111993
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PostPosted: Tue Nov 24, 2009 11:53 am    Post subject: Reply with quote

INDIAN EXPRESS
Repairs at Mumbai hurting our figures, AI tells DGHC

Shashank Shekhar
Nov 24, 2009

Mumbai Air-India’s CMD Arvind Jadhav has written to the Directorate General of Civil Aviation (DGCA), saying ground congestion at the Mumbai airport is affecting the carrier’s overall on-time performance (OTP) figures. Air India operates the highest number of flights from Mumbai.
Since October 5, the airport’s secondary runway has been shut for four months to help complete reconstruction. Since October 27, the intersection of the cross-runways too has been closed for six hours every Tuesday for re-carpeting work. Half the primary runway too is shut; as a result, the airport sees 80-100 fewer aircraft movements.

“We had asked the DGCA that when they announce the airlines’ OTP figures, they should mention this particular information about the Mumbai airport so that passengers will understand and won’t blame the airline for the delays,” said a senior Air India official. The official said the top management is trying to improve Air India’s OTP. “Had there not been any ground congestion at the Mumbai airport, our October figures would have been better,” he said.

The DGCA’s October OTP figures places Paramount Airlines, Kingfisher, IndiGo, SpiceJet and Go Air ahead of Air India. Air India’s OTP is 69.8 per cent, just ahead of Jet Airways’ 68.1 per cent. The DGCA chart does mention the fact that the repair work at the Mumbai airport has affected the OTP of some airlines.

“The reason Kingfisher’s figures are ahead of Jet and ours is that they operate most flights out of Bangalore; Air India and Jet operate the most from Mumbai,” said the AI official.

“We drew the DGCA’s attention to the fact that repair work at Mumbai was affecting timely departures of all flights and therefore this factor needs to be taken into consideration while releasing OTP records,” said Jitender Bhargava, executive director (corporate communications), Air-India.

A spokesperson for the Mumbai International Airport Limited (MIAL) said they jave not received any such communication from Air India. “Airlines knew six months ago that repair work was going to happen,” he said.

“We have set up a coordination committee to look into these matters and find solutions,” said Dr. Nasim Zaidi, director general, DGCA.
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PostPosted: Tue Nov 24, 2009 11:54 am    Post subject: Reply with quote

www.thehindubusinessline.com/2009/11/24/stories/2009112451631500.htm
AI closer to raising equity base to Rs 945 cr

Ashwini Phadnis

New Delhi, Nov. 23 Air India has moved a step closer to seeing its equity base being raised to Rs 945 crore from the current level of Rs 145 crore.

The Ministry of Civil Aviation will soon send a note to the Union Cabinet seeking its approval for an equity infusion of Rs 800 crore into the State-owned airline.

“The minutes of the Group of Ministers’ meeting where the equity proposal was approved has been received. We can now start the process of getting Cabinet approval for release of the funds,” a senior Government official told Business Line.

Official sources pointed out that Air India has never received budgetary support except for Rs 568 crore — through a mixture of equity and loan — which was recapitalised to Rs 145 crore after the merger of Air India and Indian Airlines.

“In the past, fleet acquisition was financed through internal resources. But, now, given the gap of about 20 years between aircraft acquisition and the magnitude of debt burden and falling revenues, some financial support from the Government, which is our major shareholder, is needed,” sources said justifying the Government pumping in funds into the airline.

As and when the funds are released, Air India will join a growing number of global airlines that have been provided with more than $5 billion by various governments since 2001.

On its part, the airline has taken a number of steps including renegotiating catering contracts; implementing a the Geneva-based International Air Transport Association (IATA) fuel saving programme, more popularly known as FEGA; and senior management taking voluntary pay cuts, which has resulted in saving of Rs 400 crore so far.

Incidentally, the airline’s monthly loss is also about Rs 400 crore. The airline reported a loss after tax of Rs 5,448.26 crore in 2008-09, more than double of the about Rs 2,200-crore loss reported in the previous year.
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PostPosted: Tue Nov 24, 2009 3:32 pm    Post subject: Reply with quote

Air India has rescheduled delivery of 30 Boeing planes and plans to lease out three new planes, according Civil Aviation Minister Praful Patel, Dow Jones reported.

The carrier has rescheduled delivery of three Boeing 777-300 Extended Range planes beyond 2010 and 27 Boeing 787 planes beyond their contracted delivery period starting April 2011, Patel.

He said Air India plans also to lease out three new Boeing 777-200 Long Range planes.

A panel of ministers is exploring all possible solutions for bringing Air India to "good health," Patel said.

"The plan envisages manpower cost rationalisation, fuel management, route profitability enhancement and non-traffic revenue enhancement," he said.
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PostPosted: Tue Nov 24, 2009 5:07 pm    Post subject: Reply with quote

Qatar Airways, Air-India set to boost ties
National carriers Air-India and Qatar Airways are set to boost their ties following a high-level agreement reached between India and Qatar here recently.
“Obviously, there will be an increase in capacity in the sector, which is now serviced by Qatar Airways and Air-India. At least one more Indian destination is on the cards for a direct service from and to Doha. There will be many more,” Indian Ambassador Deepa Gopalan Wadhwa said.
The high-level Indian delegation which visited Doha last week comprised the country’s civil aviation secretary Madhavan Nambiar and Air-India chairman and managing director Arvind Jadhav.
They had met senior Qatar’s Civil Aviation Authority and Qatar Airways officials.
Thousands of Indians living in the country and Qataris who visit India often will benefit from the two national carriers strengthening their ties.
She said the two countries had also agreed to co-operate on tourism. “There is a huge potential for boosting bilateral tourism,” Wadhwa said.


Buzz is there is a plan by the two airlines to tackle Emirates.
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