...did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? * Tata Group; India’s prominent business house; launched Tata Airlines in 1930s. Over the next two decades, eight more private companies entered the field, entry was slightly restricted. * Flying was a dream for the middle class populace of India. Emergence Of LCC was mostly to target this middle class segment. * Air Corporations Act which was formulated in 1953 transformed the existing airlines into two nationalized entities: Indian Airlines Corporation (IA) for domestic services and Air India Corporation (AI) for international services. The Act restricted private players from operating across India * Progressively, Private sector was allowed to re-enter the market, beginning in the early 1990s during the first phase of economic liberalization in India. * By 1994, the government had approved six private carriers including Jet Airways, Air Sahara, Damania Airways, NEPC Airlines, Modiluft and East West Airlines to commence domestic operations. Only the two private carriers Jet Airways and Sahara Airlines had survived by the year 2003; but this duopoly was challenged by Air Deccan in the year 2003 by the introduction of the first ever LCC in India which was a turning point in the Indian Aviation Industry wherein the traditional economy and business fares were replaced by special discounts, promotional fares, and corporate discounts. * India, being one of the fastest growing...
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...JOURNALISM NEHA J. BHATIA #03 TYBMM –JOURNALISM JAI HIND COLLEGE, MUMBAI [THE AIR INDIA FINANCIAL CRISIS] The role of government funding in the national carrier’s financial crunch. NICHE JOURNALISM: THE AIR INDIA CRISIS NEHA J. BHATIA, TYBMM 2012 INDEX HISTORY OF CIVIL AVIATION … 3 CIVIL AVIATION … 3 AIR INDIA … 4 FINANCIAL CRUNCH … 5 LEASING POLICIES … 6 IMMETHODICAL MERGERS … 7 RESTORATION EFFORTS … 10 SUGGESTED CORRECTIVE MEASURES … 13 THE CASE FOR DOMESTIC AIRLINES IN THE COUNTRY … 14 CONCLUSION … 15 GLOSSARY … 16 BIBLIOGRAPHY … 18 2 NICHE JOURNALISM: THE AIR INDIA CRISIS NEHA J. BHATIA, TYBMM 2012 HISTORY OF CIVIL AVIATION The history of Indian civil aviation began with its first domestic air route between Karachi and Delhi in December 1912. It was opened by the Indian Air Services in collaboration with the UK based Imperial Airways as an extension of London-Karachi flight of the Imperial Airways. Without any backing from the Indian Government, Tata Sons Ltd., the first Indian airline, started a regular airmail service between Karachi and Madras three years later. During the time of independence, nine air transport companies were carrying both air cargo and passengers in the Indian Territory. To further strengthen the aviation sector of India, the Indian Government and Air India (earlier Tata Airline) set up a joint sector company, Air India International in early 1948. And the nationalization of Indian Airlines (IA) in 1953...
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...Human Resource Management Case Analysis on Grievance Issues Related to Air India Submitted By : Sapana Sarawagi (MS-49) Sonam Gensapa (MS-52) Sandeep Jorasia ( MS-46) Case: Air India employees go on a strike after their grievances regarding parity in wages, delay in payment of their salaries and issues relating to working conditions could not be resolved. Currently the issue is going on as they have threatened to go on a strike on March 9, 2011. Background: In May 2007, India's Ministry of Civil Aviation announced that Air India Limited (AI), India's national flag carrier and Indian Airlines Limited (IA), the government owned domestic airline, would merge with effect from July 15, 2007.1 The new airline formed by the merger was to be called 'Air India,' and would operate in both the domestic and international sectors. The AI-IA merger was expected to create one of the biggest airlines in the world in terms of the fleet size. According to information posted on IA's website, the increasingly intense competition faced by AI and IA from private and global airline companies, was the main reason for the merger of the two airlines. . However, the proposed merger was not without its share of critics. Initially there was opposition from the employees of the two airlines as they feared that the merger would result in job cuts. The Aviation Minister, Praful Patel, had allayed their fears and assured the employees unions of the two airlines that employment conditions...
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...domestic air route was opened between Delhi and Karachi by The Indian State Air Services (in collaboration with Imperial Airways of the UK). This marked a new beginning in India. Three years later, Tata Sons started a regular airmail service between Karachi and Madras. At that time, there were a few transport companies operating within and also beyond the frontiers of the country, carrying both air cargo and passengers. Some of these were Tata Airlines, Indian National Airways, Air Service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways. The Tata Airlines was converted into a public limited company in the year 1946 and renamed Air India Limited. In 1948 a joint sector company-Air India International was established by the Government of India and Air India headed by J.R.D. Tata. In 1953, the Parliament passed the Air Corporation Act. Air India International and Indian Airlines Corporation came into formal existence and Air India International was nationalized. The Indian Aviation sector was liberalized in commence in 1990 with private sector players being allowed to operate as air taxi operators in India. A number of private players commenced domestic operations like Damania, East-West, Modiluft, Air Sahara and NEPC, entered the industry. However, a decade later none of them have survived. Today the Indian Aviation sector is dotted with new players like Air Deccan, Indian Airlines, SpiceJet, GoAir, Air Indigo,...
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...Write up on Case Study of Air India Airlines Group Members: Anukriti Dave Nitu Thomas Vishwa Patel Air Indian Airlines into trouble 1. Introduction Success of the Airline Industry depends on cordial relationship between the employers and the employees. Inflexibilities in deployment of the workforce, supported by rigidity in labor legislation, have all added to the woes and have now begun to affect employment generation as well. All these changes are believed to have impacted employment and employee relations and therefore, resulted in catastrophic breakdowns in industrial relations across the country. Being held at a time when the business scenario is proving to be a challenge for both employees and employers as businesses come under increasing pressure to keep stakeholders satisfied. These changes have implications both for the organization and the employees. As a consequence the nature of relationship between the employees and the employer is impacted. Industrial disputes are a menace to industry and society. Managing an Airline is unique and challenging, the quality of services of Airline heavily depends on the quality of human resource it deploys. Airline companies must have potential human resource policies that help the organization to attain its goals, enable it to employ the skills and abilities of the workforce efficiently, assist to bring about employees job satisfaction and self-actualization and establishing and maintaining harmonious Employer-Employee Relations...
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...options. a. Vikram Mehmi b. Nitin Chopra c. Kamesh Goyal d. None of these This person has been appointed as the chairman of the Unique Identification Authority of India (UIA). Name him from the given options. a. N.R. Narayana Murthy b. K.V. Kamath c. Nandan Nilekani d. Sam Pitroda The present External Affairs minister of India is… a. Murali Deora b. S.M. Krishna c. A.K. Antony d. Anand Sharma General Knowledge Take Off Time: 20 min 6. As per the third Annual Quality of Life Index study conducted recently, this is the most livable city in the world. We are talking about…. a. Copenhagen b. Tokyo c. London d. Zurich 7. The present President of ASSOCHAM is… a. Kumaramangalam Birla b. Sajjan Jindal c. K.V. Kamath d. Swati Piramal 8. Animal Planet is the name of the channel that belong to… a. BBC b. CNN c. Discovery Communications d. Star 9. Which of the following is the youngest grandmaster of chess in the history of the game? a. David Howell b. Sergei Karjakin c. Vladimir Kramanik d. Nigel Short 10. Which of the following represents the present Employee Provident Fund interest rate ? a. 7.5% b. 8.5% c. 9% d. 9.5% 11. Loksatta is the name of the newspaper that belongs to the stable of… a. Indian Express Group b. Times of India Group c. The...
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...Connectivity is the backbone of today's global economy--bringing people to business, tourists to vacation destinations and products to markets. All are important to India's development. On an average, Indians travel by plane once in ten years, while Americans travel 1.8 times each year. If Indians travelled as frequently as Americans, the market would be 2.1 billion travelers instead of today's 120 million. But instead of flourishing and delivering economic benefits, India's aviation industry is struggling. The twin shocks of skyrocketing oil prices followed by the global financial crisis hit in 2008-just as India was gearing up for high speed aviation growth. Four years later, the sector's recovery is hampered by high taxes, insufficient infrastructure, high costs and restrictive investment policies. AAI against Kolkata, Chennai airport privatisation Airports Authority of India (AAI) is opposed to the government's proposal of privatising the Kolkata and Chennai airports, its highest revenue earners, arguing that it is well equipped to manage the facilities, and such decisions can merely undermine the public sector. Criticising Planning Commission's logic that slow commercial decision-making at AAI was the reason for privatisation of these two airports, senior officials at the PSU expressed fear about the state-owned company's fate if management of all good airports is taken away from it. "Why aren't the rigid checks and balances relaxed a little for us? Then, we will also...
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...East west airlines, ModiLuft, Damania Airways, Gujarat Airways and Span Air came into emergence, but only Jet airways and Sahara Airlines survived. Air Deccan in 2003, with the concept of low cost carrier came changing the aviation industry. Thus SpiceJet, a rebirth of ModiLuft, entered market with fares as low as Rs.99 with its first flight commencing between Delhi-Ahmedabad- Mumbai. It targeted the cost conscious customers and had high utilization factor by being more time in air. It received competition from its peers, IndiGo, JetKonnect, Kingfisher Red etc. Employee shortage, poor infrastructure, high cost of ATF were some of the factors affecting the operations of SpiceJet. Ans 2: In 1930’s Tata group launched its first airlines as Tata Airlines. In 1953, Air corporations Act was reformed and nationalization of airlines took place. The existing airlines, were merged and called Indian Airlines Corporation for domestic services and Air India for international services. After the LPG policy by 1994, there were 6 private players in the aviation sector but only 2 survived by the end of 2003 i.e. Jet airways and Sahara airlines. The entry of first LCC of Air Deccan, proved to be a turning point in the aviation sector. Special discounts, check fares, promotional fares, web fares and corporate discount plans etc formed the part of LCC. India being the fastest growing economy, saw a CAGR of 19.14 % in air traffic and 9.91% in cargo movement with funds flowing in for infrastructure...
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...Air India Etc. Etc vs Nergesh Meerza & Ors. Etc. Etc on 28 August, 1981 Equivalent citations: 1981 AIR 1829, 1982 SCR (1) 438 Bench: Fazalali, S Murtaza PETITIONER: AIR INDIA ETC. ETC. Vs. RESPONDENT: NERGESH MEERZA & ORS. ETC. ETC. DATE OF JUDGMENT28/08/1981 BENCH: FAZALALI, SYED MURTAZA BENCH: FAZALALI, SYED MURTAZA VARADARAJAN, A. (J) SEN, A.P. (J) CITATION: 1981 AIR 1829 1982 SCR (1) 438 1981 SCC (4) 335 1981 SCALE (3)1275 CITATOR INFO : F 1983 SC 130 (14) RF 1987 SC1086 (29) F 1987 SC1515 (2,3,10) RF 1987 SC2354 (11) ACT: Constitution of India 1950, Articles 14 and 16, Air India Employees Service Regulations, Regulations 46 and 47, Indian Airline Service Regulation, Regulation 12. Different conditions of service of Air Hostesses employed by Air India in India and United Kingdom-Validity of. Conditions of service-Discrimination-Determination of question. Indian Kanoon - http://indiankanoon.org/doc/1903603/ 1 Air India Etc. Etc vs Nergesh Meerza & Ors. Etc. Etc on 28 August, 1981 Retirement of Air Hostesses in the event of marriage taking place within four years of service-Whether unreasonable or arbitrary. Retirement of Air Hostess-Provision in service rule, or on first pregnancy whichever occurs earlier-Whether unconstitutional. Retirement age of Air Hostess-Fixation of at 45 instead of 58-Whether in valid . Air Hostess-Extension of service-option conferred on Managing Director- Whether excessive delegation of power. Air India...
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...BCCA’S INSTITUTE OF MANAGEMENT STUDIES Nesbit Road, MAZAGAON, MUMBAI – 10 V SEMESTER :______________________________________ NAME OF STUDENT : CLASS : T.Y.B.M.S DIV : 000 SUBJECT : 0000000000 TOPIC : RISE & FALL IN THE AVIATION INDUSTRY NAME OF PROFESSOR : 000000000 ____________________________ _____________________________ SIGNATURE OF STUDENT SIGNATURE OF PROFFESSOR ________________________ _______________________ MAX. MARKS OBT. MARKS ABSTRACT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO...
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...Problems: 1. Was not prepared for competition it started getting after the liberilastion of the economy in 1990. 2. Bloated workforce. Air india has 28000 permanent work staff , doubles jets head count. It operates 127 aircraft , compared with jets 115. 3. Highest employees per aircraft in the world. 200:1 whereas desirable is 130-170 :1 4. Bad management and faulty policies has brought air india to this crisis level. 5. A culture of complete sloth in administration. 6. Complete lack of ownership. 7. Lack of responsibility for results and failures. 8. Deeply ingrained corruption in all levels. 9. Instead of renting out unused iconic portions of Nariman point building , for the huge sum the debt ridden airline is paying Rs. 22 lakh each month for its upkeep , 15 of its 23 florrs are lying vacant. 10. Old gas guzzling aircrafts still running 11. Poor marketing and campaign management competitiors like spice jet and kingfisher do effective marketing. 12. Employees not paid salaries. 13. Employee strikes further taking it out of business and competitors taking advantage. 14. The airline has not posted a profit since merging with duopoly partner Indian Airlines in 2007 and relies on hand outs from new delhi to survive. Flight to survival: It needs to 1. Secure a massive debt and operational overhaul if it is to survive in a market growing at 20% a year. 2. $ 4 billion of working capital debt 3. Privatisation...
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...Q.1How did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? Aviation industry in India was born in the year 1930.Tata group one of the prominent industry in India launched Tata airlines (India’s first airline services) After the emergence of the airline industry in India, after two decades more eight private players started their business but their operations were quite restricted. These airlines proved to be a failure despite constant support from the government. As a result Air traffic enquiry committee was formed constituted by government of India recommended the nationalization of airlines. The air corporations Act 1953 was formulated and the two entities were nationalized namely Indian airlines corporation (IA) and Air India International (AI). The act restricted private players until 1986. In 1990’s private sector was allowed to reenter the market with the wave of the economic liberalization. This was the time when LCC concept in India was brought into picture in the Indian market. By March 1994 the government had approved six private carriers to commence the domestic services. But despite two carriers all others closed and filed insolvency. This duopoly continued till 2003, this duopoly was challenged by air Deccan in 2003 with its concept of LCC which made this industry emerge in India which proved to be a turning point in this industry. Air Deccan with its entry brought into picture special discounts, promotional fares, check...
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...and its Effect on National Airlines of India By Shree Neve. 1. Introduction A company is politically connected with a politician if one of the company’s large shareholder or its top officer is: (a) a member of parliament (MP), (b) a minister or the head of state, or (c) closely related to a top official (Faccio, 2006). A company can have a politically connected individual in various scenarios: (a) either at a top most position of the company, (b) either as a large stakeholder, or (c) national ministry in-charge of a national company. The state owned enterprises (SOE’s) have direct political connections as they are completely governed and controlled by the ruling state party. SOE’s are an integral part of the nation’s economy, its welfare and social responsibility. SOE’s can raise the nation’s economy to humongous levels if managed efficiently by the responsible politicians and individuals handling the SOE. However, using SOE’s for individual benefits and not for national economy can have adverse effects on the SOE leading to huge losses of nation’s economy. Consequently, in some cases a politically connected firm can use its political ties for increase a firm’s performance and overall productivity but in some scenarios a politically connected firm can support a politician connected to gain personal benefits. 2. Downfall of the great Red Indian Maharaja, Air India A typical case of India’s national airline carrier Air India during the regime of Mr. Praful Patel from...
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...to him, through the medium of Doordarshan said that there is no single remedy to fight against corruption. Well I live in an India where the two most supreme authorities in Indian Polity seem to have given up or are helpless on the issue of corruption. Well I also live in an India where a 74 year old man like Shri.Anna Hazare dares to raise his voice against corruption,but is being called uncivil and undemocratic. A very good morning to respected judges, honourable dignitaries and my fellow colleagues,I Viren Vesuwala would like to address the issue Corruption and Indian Politics. I introduce myself as one of the youth of India who is proud to say that, 1. I am one among the youth who hail from a country which has a glorious heritage of thousands of years. 2. I am one among the youth who is proud of people like JRD Tata, Narayan Murthy, Ambani etc who have crossed the oceans and marked their presence globally. 3. I am one among the youth who is proud of great intellectuals and political leaders of past like Mahatma Gandhi,Dr.B.R.Ambedkar,Sardar Vallabhai Patel,Swami Vivekanand etc. At the same time, 1. I am one among the youth who knows that 41% of people of India live in poverty. 2. I am one among the youth who has to keep my head down in front of a foreigner when speaking about the way Common Wealth Games was organised in India. 3. I am one among the youth who fail to realize that 4000 farmers committed suicide in the state of Maharashtra in the year...
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...Equity Research June 16, 2016 BSE Sensex: 26726 INDIA Aviation Flying high amid good times Reason for Report: Sector thematic and initiating coverage InterGlobe Aviation (Rs1,011 – BUY) Target price Rs1,268 SpiceJet (Rs66 – HOLD) Target price Rs64 Jet Airways (Rs561 – ADD) Target price Rs621 Research Analysts: Ansuman Deb ansuman.deb@icicisecurities.com +91 22 6637 7312 India’s aviation sector is set to undergo a strong growth period, which should benefit all the incumbent players, particularly on a benign crude price outlook. Our supply-demand model for domestic air traffic implies 14% growth in passengers as evidenced from firm aircraft orders and latest delivery schedules. With yield management becoming the singular strategy lever for Indian Low-Cost Carriers (LCCs), cost structures assume high importance and structural asymmetries will decide the competitive edge for the airlines. However, much of these asymmetries in cost structure are inherited from the fleet strategy adopted by various airlines, hence normally have a long-lasting impact on their balance sheets. High operating leverage proves fatal in a cyclical downturn where balance sheet strength is vital. At the comfort of hindsight, bulk orders have benefitted IndiGo with valuable incentives, which have given it the structural advantage of lower rentals, while single fleet focus and strong balance sheet have lent IndiGo asymmetrical advantages on maintenance costs, redelivery expenses and supplementary rentals...
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