Below please find, an information bulletin outlining the broad initiatives and plans of Air India.
Wilson Coelho Kuwait AIR INDIA - PLANS & INITIATIVES Air India welcomes the partnership of the Indian people worldwide in making it an airline of choice. Services to the US from India have doubled within a year, and plan to double again. New York, Newark, Chicago and Los Angeles will be supplemented with Houston, Washington and San Francisco in the future. Canada, Australia and South Africa are planned. New destinations like Birmingham, Manchester, Beijing, Lagos and Mauritius are being added to the network. Better connectivity to interior points within India is being provided e.g. Lucknow, Guwahati and Mangalore. Kuwait has been on Air India's flight map since 1960, currently in its 46th year of service. Air India is seriously considering additional flights to link Ahmedabad, Hyderabad, and Trivandrum with Kuwait, especially if Iraq political stability is achieved soon. The economy of Kuwait and all of the GCC have seen a rapid growth with firming up of petro-product prices, resulting in strengthening of the real estate sector, backed by momentum of liberalization, and visionary policies of member nations. The new initiatives and investments in infrastructure, industry and tourism are enhancing the appeal of the GCC, and Kuwait in particular to local and international investors. The services sector is experiencing a strong growth, with the financial sector, hospitality, education, construction, and related trading activities in the forefront. All GCC nations are benefiting from this economic boom. India's liberalization process has established globally competitive industries like InfoTech, Telecom, Pharmaceuticals, Engineering, Petroleum, Power, Roads, Hospitality, Entertainment, Tourism and Air services. This has allowed rapid growth of professionals and the services economy, spurring demand for education and consumer goods. Air India is part of this new awakening. It aims to become one of the top carriers in Asia. Accordingly a fleet renewal exercise has been initiated. Newer aircraft like B777, B744 and B737-800 have been taken on lease, and a purchase plan for a modern fleet is before the government. Achievements: There has been an improvement in many areas. Of the 280 carriers registered with IATA - International Air Transport Association for the IOSA-International Organisation of Safety Audit compliance, Air India was one of the top10 to be audited and registered by them on 30th July 2004 itself. Air India receives recognition and compliments for its service from passengers quite frequently. > The on-time performance has improved. Punctuality is at a record high. In-flight catering and service is recognized. Installation of Flat Bed in all First class cabins and Slumberettes in the Executive class have increased the attractiveness of the airline to the business community. Yields have gone up considerably, due to market acceptability of schedules, and service levels in most markets. Threats: SARS had major negative impact on the Aviation industry and concerns have not subsided. Iraq crisis, international terrorism, and security concerns have affected trade and travel. High fuel costs, finance, state laws, regulations and taxation with commercial repercussions. Non-commercial interventions, geo- political disturbances, natural and man-made disasters. Opportunities: Travel in India is increasing, with more people going out of India than coming in. The whole economy is booming, despite the rise in fuel prices. The Human Resources is competing in the field of Business Process Outsourcing, R & D and manufacture in the Pharmaceutical and related medical processes. Priorities: Air India has not been able to take full advantage of the travel boom due to its shrinking capacity, and an ageing fleet. The lack of direct flights and adequate frequencies to all destinations pose a great challenge. The question of under-capitalisation is being examined, and an Initial Public Offering, or substantial government funding may be essential. If Air India has to grow, these issues cannot be ignored. It aims to increase productivity among the employees, as growth without productivity is disastrous. Air India is in the process of identifying potentially viable routes. A flexible route network and passenger convenience with more direct flights to key destinations is under consideration. Group of mid-ranking officers have been given the task of designing a corporate strategy for the next three to five years with inputs from staff and labour unions. Action: Action is being taken to monitor performance on a regular basis by the Management. A Committee has been formed to look into customer grievances and suggestions. This committee meets every fortnight and identifies problem areas that need to be tackled on a short-term and long-term basis. Recruitment of new staff in keeping with the expansion plans in a few critical areas like cabin crew and pilots is underway. Route and fleet expansion has been initiated. Air India represents the aspirations of Indian people resident internationally. With the whole-hearted support of the Indian community, it will be able to surmount the myriad challenges posed, many of them outside the control of the airline. Armed with a new vision, direction, and commitment, it should scale new heights in the future. From: AIR INDIA- KUWAIT 05th February 2005
