Indian Airlines ABHI

8/8/2019 Indian Airlines ABHI

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Indian airlines


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COMPANY PROFILE


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THE LOGO

While creating a logo the team considered several

options- the national flag, birds, animals and colors.


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Before zeroing in on the wheel from the structure at

Konark at Orrisa which signifies motion and represents

the image perfectly.

It has changed its name Indian as Indian is such a generic

name. It represents 100 crore people, their emotions,

their movies everything.

The wheel in the Konark temple, it was an inspiration for

the new logo is a 12ft large bulky monolithic structure.

Looking beneath structure

IAL becoming Indian is such big news that the coverage it

generated left all paid advertising in the dust. As a logo

and name change is just a part of the story more

important is the overall image of the airline. The new look

has to seep into visible part of the airline- from the

tickets, the counter, the color of the floor inside the

aircraft, to the uniforms and the standard of service.


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Indian Airlines Limited

Indian Airlines have been constantly innovating and upgrading its

fleet and today is one of the largest domestic airlines in the worldwith the fleet of 55 aircrafts including A320s A319s A300s and

Boeing 737s.

Indian Airlines operates 220 flights everyday carrying near about

30,000 passengers on its network. It connects 63 domestic and 19

international stations like Singapore, Kuala Lumpur, Bangkok,

Katmandu, Kuwait, Sharjah and Muscat etc.

The airlines have grown from strength to strength by keeping an

excellent track record of manpower and infrastructure

development. Its internationally recognized pilots training

academy, the Central Training Establishment (CTE) at

Hyderabad is totally self-sufficient in training pilots, engineers,

cabin crew and other personnel. In addition to this Indian Airlines


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is self sufficient in aircraft maintenances to keep its aircraft in top

flying condition.

FLEET POSITION

The fleet position of the company as on 31st march 2006, is as

under:-

Aircraft Type

Number of Aircraft

A-300

3

A-320 47*

A-319 3**


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B-737 11***

DO-228 2

* Including 17 leased aircraft.

** All three aircrafts are leased.

*** Operated by Alliance Air, which is IAs wholly owned

subsidiary.

Before 1953, i.e. before these airlines merged to form Indian

Airlines there was no set of rules and standards of operations of

the airlines. The operations mainly were competition oriented and

the result of which was that every airlines wanted to be the

cheapest one. Thus, all most all the airlines did not have enough

money to maintain the aircrafts. They presented an excellent

example of unhealthy competition. Ultimately the Govt. took over

by passing the Air Corporation Act and Indian Airlines came into

being. The Board of Directors conduct the affairs of the

corporation.

Indian Airlines is one of the public sector corporations in India. A

statutory corporation like Indian Airlines is formed with definite

objectives in the interest of the public though based on pre-set

principles. The objective functions of Indian Airlines are as follows:


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It shall be the function of the corporation to provide safe,

efficient, adequate, economical and properly co-ordinate air

transport services whether Domestic or International or both.

Corporation shall so exercise their power as to secure that

air transport services are developed to the best advantage

and in particular so exercise their power as to secure that

the services are provided at reasonable charges.

The opening up of the skies in 1992-93 thrust Indian Airlines into

a new environment of competition and gave rise to greater

expectations of the passengers. Indian Airlines has faced the

competition with aplomb, catering to enhanced passengers needs

with various product upgrades and marketing initiatives. And at

the same time, it has continued to fulfill its social obligations. The

airlines have augmented its fleet of aircraft by leasing 5 Boeing

737 and 2 A-320 aircraft. Plans are also underway to purchase

new aircraft and thereby strive to establish itself as a technology

and market driven organization.

Indian Airlines operates a complement of 58 aircraft: 30 A-320s,

11 A-300s, 11 Boeing-737 and 3 Dornier-0228s.


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Mumbai is the major maintenance base for A-300 aircraft Avionics

(Aviation Electronics) shops at ATEC (Automatic Test Equipment

Complex) take care of repair and certification of all computers on

board. Accessories overhaul division meets the needs of wheels,

brakes and hydraulic is known does a complete overhaul of A-300

engine, only detail parts are sent abroad for repair.

Delhi is the major maintenance base for A-320 and Boeing-737

aircraft. The A checks for A-320 is carried out primarily in

Hyderabad and if need arises also in Delhi. C checks, 5 years

and 9 years are carried in Delhi too.

Boeing-737 4C/7C checks are carried out in Delhi. Delhi and

Kolkata both have facility to carryout A, B and C checks on

Boeing-737 aircraft but this job is primarily carried out at Kolkata.

Well equipped Avionics overhaul shops at Delhi aid in-house

repair to majority of A320 and Boeing-737 components.

Jet engines overhaul centers a multi-millionaire dollar enterprise

undertakes repairs to both V2500 AI engines of A-320 as well asJT8D-9A & JT8D-17A engines of Boeing-737 aircrafts. Engines are

dismantled. Parts replaced and state of art test house. Only some

modules and blades are sent abroad for refurbishment.


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A full-fledge APU repair center at Kolkata takes the entire work of

APUs from all three aircrafts. Six major stations namely Delhi,

Mumbai, Kolkata, Hyderabad, Chennai and Bangalore also

extended night halt facilities for all three types of Jet aircrafts.

Indian Airlines is a Public utility under the Industrial Dispute Act

1947, has to work in the interest of public. In the view of this, the

corporation is accountable to public through the government and

parliament for its activities. The control is two-fold:

To see that corporation does not deviate from its objectives.

To have financial control because the funds of the

corporation are derived from public funds.Objectives

To meet the demand for reliable, economic and efficient

transport service through high standards of service

customers and passengers.

To maximize the essential and strategic communication

within India in times of national emergencies and to be

reliable second line of defense.


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To increase passenger satisfaction by improving

passenger/cargo and amenities.

To enhance the contribution of national economy during the

5 year plan period by securing the reasonable return on

capital consistent with the social objectives.

To foster international tourism to India and to improve

balance of payments.

To stimulate domestic tourism and tourism internal trade bi

air in order to develop air mindedness and broaden the

Indian market.

To share in the promotion of the social, cultural and

emotional integration of India and to participate in the

process redressing regional imbalances.

To encourage self expression and participate in the activities

of the company by all employees and to encourage their

legitimate aspirations for growth and self development.


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To participate in the development of national aircraft and

ancillary industry.

SWOT Analysis

For a country of continental size like India, a strong, reliable and

efficient Civil Aviation Sector goes a long way in promoting and

sustaining tourism. Indian Airlines being a leader in this industry

cannot operate in a vacuum. It needs to keep its eyes and ears

open to survive in the liberalized economy of our country, which

has paved a way for any private airlines to operate along with it.

The internal and external environments contain various strengths,

weaknesses, opportunities and threats which need to be identified

well in an advance to take care of various situations that may

arise from time to mime. We shall now try to focus on the above

mentioned factors in context with present scenario one by one.

Strengths

Infrastructural Support: The most notable strength of

Indian Airlines Limited is its vast infrastructural support built over

five decades. This has helped it reduce its costs and at the same

time increase its efficiencies. The most notable among its


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infrastructure are the Central Training Establishment (CTE) and

Jet Engine Overhaul Complex (JEOC).

Fleets Strength:Indian Airlines Limited is one of the largest

domestic airlines in the world and is equipped with modern fleet

of Airbus A-300, A-320, Dornier, ATR-42 and Boeing 737 Aircraft.

As compared to the fleet of Indian Airlines Limited, the total fleet

of all private airlines combined together is smaller than that of

Indian Airlines Limited. This clearly shows the superiority of Indian

Airlines Limited over this factor.

Vast computerized Network: Each of the 55 domestic

stations of Indian Airlines Limited is linked over a computerized

network, which provides instant reservations and up to date

information of each station instantly. This is no doubt a great

achievement, which proves that Indian Airliner Limited has

realized its potential.

Largest Network: Indian Airlines Limited Over the last 50

years, Indian Airlines has built up a reliable and stable schedule

that links 75 destinations - 57 within India and 20 abroad. From

the gateway cities of Delhi in the north, Mumbai in west, Kolkata

in the East and Chennai in the South, the passenger can take off

in an Indian Airlines Limited is within easy reach. In comparison of


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this each private airlines operate it maximum of 30 Destinations,

which is no ways near the 75 Destinations, which is no ways near

the destinations provided by.

Most Modern Fleet: Indian Airlines Limited has been

regularly updating its fleet. Having started Vikings and Dakotas it

now has Airbus A-320s, the modern aircrafts having a technology

of fly by wire and is now in the process of phasing out Boeing 737

aircrafts.

Maintenance Facilities: In aviation industry, maintenance

plays a vital role. It is the backbone of an organization and no

organization can survive unless and until it has good maintenance

facilities. Indian Airlines Limited has understood this very well and

has maintenance facilities in Delhi, Hyderabad and Kolkata. The

engineers are well qualified and hold a reputation of being one of

the best in the aviation industry. Private airlines are quite

dependent upon their foreign collaborations or the Indian Airlines

to maintain their aircrafts, which is a costly affair.

Highly modernized Central Training Establishment

(CTE, Hyderabad):CTE was established as a profit center by

Indian Airlines. It provides training in all aspects of Airlines


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Management both for personnel of Indian Airlines as well as to

representatives of other airlines as per DGCA, IATA, and ICAO. It

has been regarded as the best training facility in India and is

responsible for providing expert training facilities to Air India, Blue

Dart, Alliance Air. Air Sahara, Sri Lankan Airlines etc.

Weaknesses

Lack of personalized and customer friendly

services: This is one of the major findings of our study. Almost

all passengers feel that Indian Airlines Limited staff needs to be

more customers friendly and professional in its approach. In

services industry, it is the kind of services that one provides

matters and leaves its impression in the mind of passengers. It

infact is a measure of quality of the product. Indian Airlines

Limited needs to take immediate steps in this regard to change

the public opinion.


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Overstaffing: As mentioned earlier the total staff strength of

Indian Airlines Limited is 18715 as on date. On the average

19300-19500 people travel on Indian Airlines Limited on its 112

flights daily. It records three hundred departures per day

(including Alliance Air). This means that there is roughly about

one staff recruited against every passenger traveling. This is no

doubt a bad sign. Indian Airlines Limited has understood this

weakness now and hence has not made any major recruitment for

last few years. Moreover, there are around two thousand

employees retiring within next two years which will trim work

force automatically.

Under Utilization of Capacity:Indian Airlines Limited sells

space, which is highly perishable. This is because idle capacity

would imply opportunity lost. Capacity means the total number of

seats offered by Indian Airlines Limited daily to its passengers. It

has been observed that Indian Airlines Limited offers around

32000 seats daily where as on average 19300 seats are utilized

meaning an average seat factor of about 60%. It is imperative to

improve upon the situation before it is too late. More marketing

efforts are required to attract larger passenger.


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Opportunities

Growth of Aviation Industry: The recession in the West,

the Gulf Wars, Surat Outbreak and Kargil War have slowed tourist

growth and consequently affected the Indian Airlines Limited

revenues. However, these were transient setbacks as has been

proven by recovery of global tourist activity. Aviation industry is

growing at the rate of 10% per year. This is no doubt a good sign.

And Indian Airlines Limited must exploit this opportunity and take

maximum benefits out of it.

Operating on International Routes: Earlier Indian

Airlines Limited was not allowed to operate on international

sectors, as Air India took care of it. With the liberalization of

Indian economy, Government of India gave Indian Airlines Limited

a green signal to operate in the international routes. It is always

economical to operate on long routes and it is only by this

attraction Indian Airlines Limited has branched out to operate on

17 international sectors.


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Profits after a long time: Indian Airlines Limited had been

running in red from the year 1989-90 to 1996-97 for a number of

reasons. It started earning profit in 1997-98. It earned a profit of

Rs. 47.27 crore in 1997-98, Rs. 14.17 crore in 1998-99 and Rs.

51.42 crore in 1999-00. But after that it again started making

losses with a loss of Rs. 159.14 crore in 2000-01. It remained in

red in 2001-02 with a loss of Rs.246.75 crore followed by a loss of

Rs. 196.56 crore in 2002-03. Then it came in black once again in

2003-04 with a net profit of Rs. 44.17 crore.

Creation of profit centers: Due to its size Indian Airlines

Limited is unable to be as nimble as it ought to be in term of

decision making, customer service and employee motivation.

Consequently, an integral part of its strategy was to hype off

certain activities into separate profit centers, to make them more

focused, flexible and accountable. It was with this in mind that

Indian Airlines Limited created the following profit centers:

Central Training Establishment

Jet Engine Overhaul Complex

Alliance Air

Ground support Cargo

Auxiliary Power Unit

Engineering


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The profit centers have already made useful contribution in the

improved performance of Indian Airlines Limited.

Other Opportunities: the company stands to benefit from a

variety of other opportunities due to its inherent strengths and

emerging market trends. Some of these advantages are listed

below:

Good domestic market growth potential in the event of

upturns in the domestic market

Synergy between domestic and international operations

Modern engineering infrastructure and highly skilled

manpower

Revenue potential from handling services rendered to other

airlines

Threats

Competition Itself:Ever since the inception of Indian Airlines

Limited it had never tasted competition, as it was a protected

monopoly. When the private airlines entered this field there was a

panic in Indian Airlines Limited, instead of thinking of ways to

tackle, it stated condemning the Govt. Policy and thought it as


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threat to it existence. It is only recently that it has realized that

Private Airlines were here to stay.

Instability in the Polices of India: For the last 4 of 5

Years there has been a great uncertainty in the polities of India.

Since majority of Indian Airlines Limited polices requires the

approval of Govt. hence an uncertainty in the political circle

hinders the decision making of Indian Airlines Limited. Every Govt.

has its own perception about aviation industry resulting in thechange in the policies under short intervals. This not only results

in the low moral of the management but also makes it indecisive

which is not good for an organization.


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Documents

Indian Airlines ABHI