What I am doubting is anyone on this forum knowing Air India’s needs better than they do unless they actually work for Air India.
A fair point I think.
Absolutely a fair point, theoretically that is.
Just for an example, Air India is launching new flights from HYD to the US. The flights current route plan is HYD-DEL-FRA-ORD. I am sorry, but for 2009 such a route is almost blasphemous. HYD – DEL is an absolutely unnecessary leg. Specially when BA, KLM and EK offer direct LHR, AMS and DXB connections onward to America. Air India’s operations from DEL and BOM are the only actual good ones that business passengers can make use of. BLR, HYD, MAA etc. are all under the brunt of poor decisions resulting in foreign carriers getting most of the business.
AI has made an excellent decision in taking FRA as there western hub but there current flight schedules from other metros do not compliment the amount of capacity they can acquire via FRA.
As of today EK operates more outbound flights to DXB than AI offers on its full international route map! EK is pressing ahead very hard promoting its low fares to America via DXB. And this is when AI has now 3 non-stop routes to America.
Coming to the 380s again i don’t know why they had to publicize this even if talks were on, after such news few days back.
http://www.indianexpress.com/news/maharajas-coffers-go-empty-and-the-banks-arent-lending/432544/
Maharaja’s offers go empty and the banks aren’t lending
Mar 09, 2009
New Delhi : State-owned behemoth National Aviation Company of India Limited (Nacil) is facing rough weather with many banks refusing to lend short-term funds to the company. Its working capital need this financial year, which is already 42 per cent higher than last year, is likely to surpass the company board’s sanctioned limit of a whopping Rs 13,550 crore.
According to civil aviation ministry sources, Nacil is being forced into “distress borrowing” now since most banks are willing to roll over the company’s short-term loans. The exposure of banks has breached the limits set for a single company. “Instead, they (banks) have now demanded a comfort letter from the government,” said an official who did not want to be quoted.
and
PostPosted: Mon Feb 09, 2009 8:28 pm Post subject: Reply with quote
karatecatman wrote:
Update
GoI to give Air India an equity infusion of upto Rs. 2000 crore soon. The plan is likely to get all approvals quickly.
http://profit.ndtv.com/2009/02/09190749/Air-India-may-seek-Rs-4K-cr-re.html
Air India may seek Rs 4K cr rescue package from govt
Press Trust of India
Monday, February 09, 2009 (Mumbai)
Air India is likely to seek a revised rescue package of Rs 4,000 crore from the government at the upcoming meeting of its board later this month.
The package will be in the form of both additional equity and long-term loans, a source closely connected to the development said.
“The Cabinet note for providing an additional equity of Rs 1,250 crore is ready and approval for the same is expected shortly,” the source said.
And AI was snubbed by the government over financial aid, instead the government demanded a report from AI on why they lost there market share on routes such as LHR and JFK.
The only arm of AI that is doing quite well is Air India Express which is being, by the looks of it a very proficient management. AIE will also face the brunt soon with Air Arabia expanding services into India and FlyDubai which will also start in the near future, accompanies a falling demand of traffic from places in the middle east with high concentrations of Indian migrants.
We right now, after decades and decades have finally got a good Civil Aviation minister who understands the business very well, and its under his leadership that we have got new airports such as the brand new one in HYD which was recently rated in the top 10 airports of the world. But even he is struggling to get the AI management which is strongly knit in with the Unions to get AI back into competition again, let alone profitability.
Although AI has quite improved in its service standards over last year or so thanks to the pressure created by the likes of 9W and IT and brand new aircraft, people still don’t take the services of AI as their first preference due to years and years of poor performance from AI. It will take time to regain AI’s lost shine, and the current management does not seem to be up for the job.
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