Air India Strategy
1.0Executive Summary
Air India began its services in 1932 and has been operating in India for the last 78 years. It is the oldest passenger flight of India. The government of India holds 49% of Air India’s share with an option to acquire 2% more since 1946. This made Air India a public sector thus enabled it to operate flights internationally. In spite of being a public sector company Air India has been running in loss for the past 10 years.
A SWOT analysis was conducted to analyze the strength of Air India that sets it apart from its competitors and its weakness were identified which would provide an insight as to why Air India were running a loss and the opportunities and threats provide information of the possible areas of improvement that can bring in more revenue and the threats that can affect its growth.
The competitor analysis of Air India is a comparison Air India against its competitors. The analysis shows that Air India needs to put in more effort in improving its loyalty programmes, safety and security, advertising and its financial position is one of the poorest.
Based on Air India’s market position a plan is prepared to improve Air India’s condition. The plan involves, reducing Air India’s human resource, expanding network routes to Asia Pacific region, moving into singles market and rebranding its image.
The implementation of the plan would provide revenue of 1 billion and reduce human resource cost by 8 million. The total cost for implementing the plan would be 33.5 million.
2.0Introduction
Air India is the national carrier of India and offers flights to 96 destinations. Air India Express, a Low Cost Carrier (LCC, subsidy to Air India, commenced its services from 2004. Air India Express operates its services to Middle East and South East Asian. In 2007, Air India merged with Indian Airlines and a new company called the National Aviation Company of India Limited (NACIL) was approved by the government to facilitate the merger (Air India
Air India began its services in 1932 and has been operating in India for the last 78 years. It is the oldest passenger flight of India. The government of India holds 49% of Air India’s share with an option to acquire 2% more since 1946. This made Air India a public sector thus enabled it to operate flights internationally. In spite of being a public sector company Air India has been running in loss for the past 10 years.
A SWOT analysis was conducted to analyze the strength of Air India that sets it apart from its competitors and its weakness were identified which would provide an insight as to why Air India were running a loss and the opportunities and threats provide information of the possible areas of improvement that can bring in more revenue and the threats that can affect its growth.
The competitor analysis of Air India is a comparison Air India against its competitors. The analysis shows that Air India needs to put in more effort in improving its loyalty programmes, safety and security, advertising and its financial position is one of the poorest.
Based on Air India’s market position a plan is prepared to improve Air India’s condition. The plan involves, reducing Air India’s human resource, expanding network routes to Asia Pacific region, moving into singles market and rebranding its image.
The implementation of the plan would provide revenue of 1 billion and reduce human resource cost by 8 million. The total cost for implementing the plan would be 33.5 million.
2.0Introduction
Air India is the national carrier of India and offers flights to 96 destinations. Air India Express, a Low Cost Carrier (LCC, subsidy to Air India, commenced its services from 2004. Air India Express operates its services to Middle East and South East Asian. In 2007, Air India merged with Indian Airlines and a new company called the National Aviation Company of India Limited (NACIL) was approved by the government to facilitate the merger (Air India