Air India[1]

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Name : A.L.

PRANEETH RAO
Reg No.: 24maecos12
INTRODUCTI
ON
Air India launched its operations in 1932
before India even attained independence
from the British. Back then, it was called
Tata Airlines since it was launched by the
Tata Group and later changed to Indian
Airlines.J.R.D. Tata launched the airlines
with the mission to transfer mail for
Imperial Railways and to let the people
of India access the air travel
In 1946, the name of the airline “Indian
Airlines” was formally changed to Air India.
On July 29th 1946, it became a public limited
company. In 1948, the Government of India INDIAN
acquired a minority stake of 49% in the
company. In the same year, the airline made AIR LINES
its first international flight going to London Indian Airlines played a significant role in the
Heathrow from Mumbai. development of domestic aviation in India. It
In 1953 it was taken over by the Govt. provided essential connectivity to various
of India Air Corporations Act and became a regions of the country and contributed to the
growth of tourism and business.
government-owned airline to consolidate the
While Indian Airlines no longer exists as a
fragmented domestic aviation market in India. separate entity, its legacy and contributions
to the Indian aviation industry continue to be
recognized.
TATA AIR INDIA
AIR
&
AIRLINES INDIAN AIRWAYS INDIA

Natarajan Chandrasekaran
Chairperson of the Tata Group
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History Operations

It was India's first


commercial airline. Serves over 100 domestic and
Nationalized in 1953 and international destinations.
renamed Air India. Merged Operates a fleet of modern
with Indian Airlines in 2007 aircraft, including Boeing 737
to form the National Aviation MAX, Airbus A320, Airbus A350,
Company of India Limited and Boeing 777.
(NACIL).

Air India's Government


Financial Crisis Intervention

The airline has been plagued by financial


difficulties for many years, including The Indian government
losses, debt, and inefficient operations. recognized the need for a Campbell Wilson
These financial burdens have hindered its turnaround and intervened
ability to invest in fleet modernization, restructuring measures. This
improve customer service, and compete included providing loans,
effectively with rival airlines. deferring payments, and
CEO & MD of Air India
restructuring debt. 5
GOVERNMENT BAILOUTS
1.2001: THE INDIAN GOVERNMENT PROVIDED A FINANCIAL BAILOUT PACKAGE TO AIR INDIA, WHICH INCLUDED A LOAN OF
₹2,000 CRORE (APPROXIMATELY $300 MILLION) TO HELP STABILIZE OPERATIONS AFTER THE IMPACT OF THE 9/11 ATTACKS AND
THE SUBSEQUENT DROP IN AIR TRAVEL.
2.2008: AS LOSSES MOUNTED, THE GOVERNMENT APPROVED ANOTHER BAILOUT PACKAGE, WHICH INCLUDED A COMBINATION
OF LOANS AND EQUITY INFUSION TO HELP MANAGE THE FINANCIAL CRISIS EXACERBATED BY RISING FUEL PRICES AND THE
GLOBAL FINANCIAL DOWNTURN.
3.2012: THE GOVERNMENT EXTENDED FINANCIAL ASSISTANCE OF APPROXIMATELY ₹30,000 CRORE (AROUND $4.5 BILLION) AS
PART OF A TURNAROUND PLAN. THIS INCLUDED RESTRUCTURING DEBT AND OPERATIONAL SUPPORT.

RESTRUCTURING PLANS
•2012-2019: AIR INDIA WAS INVOLVED IN SEVERAL RESTRUCTURING PLANS AIMED AT IMPROVING EFFICIENCY AND REDUCING
LOSSES. THESE PLANS OFTEN INCLUDED FINANCIAL ASSISTANCE FROM THE GOVERNMENT BUT FACED IMPLEMENTATION
CHALLENGES.

PRIVATIZATION INITIATIVES
•2020-2021: AS FINANCIAL STRUGGLES WORSENED, THE INDIAN GOVERNMENT INITIATED THE PROCESS OF PRIVATIZING AIR
INDIA, WHICH WAS VIEWED AS A MEANS TO ATTRACT INVESTMENT AND OPERATIONAL EXPERTISE.
•THE TATA GROUP ACQUIRED AIR INDIA IN JANUARY 2022 FOR ₹18,000 CRORE 6
New AIR
INDIA
Tata Group-owned Air India on November 12, completed its
much-awaited merger with Vistara to create an integrated airline,
partly owned by Singapore Airlines, that will be flying 1,20,000
passengers daily with a fleet of 300 aircraft covering 55 domestic
and 48 international destinations, with 312 routes and 8,300
weekly flights to connect over 800 destinations worldwide. It has
a collective staff strength at over 30,000,"

Singapore Airlines (SIA) in exchange for its 49% stake in Vistara,


SIA received a 25.1% stake in the merged Air India and will also
invest an additional ₹3,194.5 crore in the enlarged entity as part
of the merger. It is now the country's largest international carrier
and the second-largest domestic carrier.

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The Air Corporations Act was passed in
1953. Under this act, Air India was
nationalised
1994, March 1: Air Corporations Act, 1953
was repealed and was replaced by Air
Corporations (Transfer of Undertaking and
Repeal) Act, 1994 thus enabling private
operators to operate scheduled services
and number of private players including
Jet Airways, Air Sahara
The company that enjoyed Monopoly in
Indian aviation industry thus entered the
oligopoly market
Though it the first arrival advantage it
couldn't keep up with the huge market
from private sector thus began its
downfall
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Conclusion
AIR INDIA’S CONTRIBUTION MADE INDIA A KNOWN NAME IN THE WORLD OF
AVIATION GLOBALLY, THUS CONTRIBUTING TO THE INDIAN ECONOMY. IT WAS
THE FIRST AIRLINE TO HAVE BOOSTED INDIA’S AVIATION SECTOR. IT MADE HUGE
PROFITS FOR THE INDIAN GOVERNMENT. EVEN TODAY, THE TATA GROUP
BELIEVES IN THE POTENTIAL OF THE AIRLINES AND WITH THE RIGHT
MANAGEMENT, IT CAN BECOME A HUGE ASSET FOR THE GROUP IN THE NEAR
FUTURE.

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