Page 28 - AAA MARCH - MAY 2022 Online Magazine

Air India is a Star Alliance member with a network across USA, Since the takeover of Air India, attempts at
Canada, UK, Europe, Far-East, South-East Asia, Australia and the overhauling the airline have been limited to
Gulf. It also has an extensive domestic network, including far-flung improving the aspects related to day to day
areas of India’s North-East, Ladakh, Andaman & Nicobar Islands. AI operations such as strict on-time performance
covers 56 domestic and 42 international destinations and offers 75 across its flight schedules, an improved cabin
additional destinations through its secondary network of codeshare experience and greater cost-efficiencies.
operations. Campbell will also be responsible for Air India Express, However much more needs to be done and
which is a budget international carrier launched in 2005 offering Campbell will also face the challenge of the
affordable services on short and medium-haul routes- connecting large legacy workforce at AI. At the time of
smaller Indian towns directly to the Gulf and southeast Asia regions. its purchase by Talace, Air India along with
Air India Express and AI SATS had a total of
Campbell has his work cut out as the Air India fleet desperately 17,984, employees, out of which 9,617 are per-
needs an overhaul in terms of aircraft and cabin interiors. AI’s 27 manent employees. Under the terms of the
A-320 neo jetliners fleet is approximately three years old, while its agreement, none of AI’s employees can be
27 B-787s are nearing six years. Other aircraft in its fleet are A319s, retrenched for a period of one year from the
A321s, widebody B777-200 LRs and B777-300ERs. Two of AI’s closing date. However, they will be eligible for
B777-300ERs, which are exclusively reserved for VVIP government a voluntary retirement scheme with maximum
travel, have been paid for by the government. A substantial portion benefits in case of retrenchment in the second
of AI’s fleet is on finance lease/bridge loans or sale and leaseback year from closing. In addition, three percent of
with only some aircraft owned by the airline. AIXL operates only AI’s equity shares will also be offered to the
B737- 800 NGs, and Boeing’s newer 737 MAX could be a contender airline’s permanent employees as Employee
to modernise this fleet. These aircraft are either fully owned or on Stock Ownership Plan (ESOP). Over the next
finance lease and dry lease (leased without pilots). five years, it is estimated that approximately 36
per cent of the airline’s permanent employee
On international sector’s AI’s Business Class product is well behind strength will retire. AI had run up losses worth
contemporary standards. He will also have to work in an environ- over Rs600 billion since 2007 after its disas-
ment of high fuel prices and a dominant domestic competitor in trous merger with Indian Airlines and received
IndiGo. According to domestic air traffic data released for the month government support worth over Rs1.1 trillion to
of March by the Directorate General of Civil Aviation – Air India (8.8 keep it afloat over the past decades.
per cent) Vistara (8.9 per cent) and Air Asia India (6.5 per cent) had
a total market share of 24.2 per cent as compared to industry leader Bringing Air Asia into the fold
Indigo’s market share of 54.8 per cent. Campbell will soon have a The decision to acquire a 100 percentage
new office in Gurugram, located near the capital New Delhi, which equity stake in Air Asia India is along expected
will have AI, Vistara, Air Asia India, Air India Express and ground lines, as a consolidation of the various airline
handling service AI SATS, all under the same roof. partnerships of the Tata Group was expected
following its acquisition of AI. Tata Sons own
a 84 per cent stake in Air Asia India while the
remaining 16.33 per cent is owned by Air Asia
Investment Limited (Malaysia). Air Asia India
had reported an annual FY2020-21 net loss of
Rs15 billion and has never reported profits since
it starting operations in June 2014. Air Asia
India operates an all Airbus fleet comprised of
approximately 28 jetliners made up of Airbus
A320neo and ceos.

Tata Sons also have a 51 percentage stake in
Vistara, with Singapore Airlines Limited (SIA)
holding the remaining 49 percentage. The air-
line continues to operate as an independent
entity, though industry observers expect it to
be part of the consolidated Air India, once the
acquisition and integration of Air Asia India is
complete. Vistara completed seven years of
operations this January and operates a fleet of
50 aircraft, including 39 A320, four A321neo,
five 737-800NG, and two 787-9 Dreamliner air-
craft. It has four more 787s on order.

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