Merger of Air India an Indian Airlines
Resistance to change
Suggestion to change
In today’s fast paced world the Aviation Industry has grown gradually over the recent years, resulting as one of the fastest flourishing industries in the world. This never ending trend has increased the constant demand for pilots, aircraft engineers and cabin crews at the same time increasing the expectation of the passengers. Going through a turbulent phase over the past years facing constant complications, the Indian Aviation Industry has faced struggles including high oil prices and limited pricing power as well. With increasing debts, widening losses, pilot strikes, shutting down of overseas operations and no sign of a solid recovery plan, India’s aviation sector is heading to get worse. Privately owned Kingfisher, which has shut down its overseas operation, is one in the heaviest debts and also in need of funds. Air India is equally struggling, owing employees Rs124 crores (US$23.5 million) in unpaid salaries (The Sun Daily, 2012). The other airlines are Jet Airways, SpiceJet and GoAir. This report is mainly focused on Air India and its current situation in the aviation industry of India. The problems which Air India faces will be looked into with suggestion to overcome its struggles.
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Known as India’s finest flying Ambassador, Air India is India’s first national flag carrier. Air India was found by J.R.D Tata in the year 1932 and was called Tata Airlines. The airline was started with constant urge to excel and with non-stop enthusiasm. On March 8, 1948, Air India International Limited was formed to start Air India’s international operations. Air India started its weekly flight from Mumbai to London on June 8, 1948. In early 1950’s due to deteriorating financial conditions the government decided to nationalize air transport. The word ‘International’ was dropped in 1962 and the airline became functioning as Air India Limited (Air India, 2011). The merging of Air India and Indian, the country’s leader in the domestic sector has helped the airline to emerge as a major force in the airline industry as a whole. With its ever-growing aim for providing direct services from different points of India, the airline currently operates international flights from Mumbai and 14 other Indian cities which are: Ahmedabad, Amritsar, Bangalore, Chennai, Delhi, Goa, Hyderabad, Kochi, Kolkata, Kozhikode, Lucknow, Varanasi, Gaya and Thiruvananthapuram. Air India’s current global network, region wise is: Europe: London,Frankfurt,Paris
Gulf & Middle East: Abu Dhabi, Dammam, Dubai, Jeddah, Kuwait, Muscat, Riyadh and Sharjah.
South Asia: Colombo, Kabul,Kathmandu,Yangon and Male’
USA & Canada: Chicago, New Jersey, New York and Toronto
Merger of Air India an Indian Airlines
One of the highlights of Air India is that Air India and Indian Airlines merged along with their subsidiaries to form Air India Limited. On 1 March 2007 the Government of India approved the merger of Air India and Indian Airlines. Consequently, a new company called National Aviation Company of India Limited (NACIL) was established as a part of the merger process. The logo of the new airline till today is a red coloured flying swan with the “Konark Chakra” in orange placed inside it. The flying swan inside it has been taken from Air India’s characteristic logo. The “Konark Chakra” is a reminiscent of Indian’s logo.
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