ASSIGNMENT ON STRATEGIC MANAGEMENT C ANALYZE THE COMPANY USING THE FOLLOWING ASPECT i)Vision and Mission of the Company-

the main vision of the turnaround plan was to make Air India the leader in aviation and Indias ambassador to the world. The corporate mission is to deliver the highest quality of services around the world and be the epitome of Indian hospitality and to be Indias flag carrier and provide seamless travel within India and the world.

ii) Objectives and goals of the companyto conducts its business by benchmarking itself to the highest ethical standards, and adopting the best practices followed by the industry. It does business with a number of domestic and international Bidders,Contractors and Vendors of goods and services (Counterparties).It is committed to fostering the most ethical and corruption free business environment and values its relationships with all Counterparts and deals with them in a fair and transparent manner. In order to achieve these goals, NACIL is implementing the Integrity Pact Program in cooperation with Central Vigilance Commission (CVC).

Iii) Organizational Structure of the CompanyAir India Limited is a company that was formed as National Aviation Company of India Limited by the government of India to oversee the merger of Air India and Indian. The company was renamed as Air India Limited on 26 October 2010. It was incorporated under the Companies Act 1956 on 30 March 2007 and was owned by the Government of India based at the Air India Building in Nariman Point, Mumbai. The Company was created to facilitate the merger of the two main state-owned airlines in India: Air India, with its subsidiary Air India Express and

Indian, together with its subsidiary Alliance Air (now called Air India Regional). Until 2007, Air India and Indian Airlines operated as two completely different airlines, though completely owned by the government of India. Air India mainly operated on International long-haul routes while Indian Airlines operated on domestic and international short-haul routes. Both airlines had different fleet expansion and retirement plans. In 2007, the government decided to bring both the airlines, including Air India Express and Indian Airlines' low cost subsidiary Alliance Air under the control one body

National Aviation Company of India Limited

Air India

Indian

Air India Express

Air India Cargo

Air India Charters Limited

Air India Air Transport Services

Alliance Air

Current
Upon completion of the merger on 26 February 2011 there is now one primary airline, Air India, with two subsidiary carriers providing regional and low-cost, point-to-point services and a third subsidiary for cargo operations: Air India Limited Air India Air India Express Air India Regional AIL carriers connect 93 destinations (60 domestic and 33 international) in 24 countries as of February 2011.

iv) Products and process of the companyAir India Cargo

Air India Cargo Airbus A310-300F.

In 1954, Air India Cargo started its freighter operations with a Douglas DC-3 Dakota aircraft, giving Air India the distinction of being the first Asian airline to operate freighters. The airline operates cargo flights to many destinations. The airline also has ground truck-transportation arrangements on select destinations. A member of IATA, Air India carries all types of cargo including dangerous goods (hazardous materials) and live animals, provided such shipments are tendered according to IATA Dangerous Goods Regulations and IATA Live Animals Regulations. At the warehouse in Mumbai, Air India has developed a system of inventory management for cargo handling of import/export functions. This takes care of the entire management of cargo, supports Electronic Data Interface (EDI) messages with Indian Customs and replaces to a great extent existing paper correspondence between Customs, airlines, and the custodians. This also replaces manual handling and binning of cargo at the warehouse in Mumbai by Air India. Air India Regional Air India Regional was started as a low-cost arm of Indian as Alliance Air As part of Indian's merger with Air India, it was renamed Air India Regional. It operates 357 weekly flights to 25 domestic destinations as a subsidiary of Air India. Its main hub is Delhi's Indira Gandhi International Airport. As Alliance Air, the airline operated a fleet of 12 Boeing 737-200 aircraft. All these aircraft were phased out post the merger. Air India Regional now operates a mixed fleet of ATR 42-300 and Bombardier CRJ700 aircraft. Air India Express Air India Express is the airline's low-cost subsidiary headquartered in Mumbai, operating mainly from Indian state of . It operates services mainly to the Middle East and Southeast Asia. The airline belongs to Air India Charters Limited, a whole owned subsidiary of Air India Limited. Today Air India Express operates nearly 100 flights per week, mainly from southern states of Tamil Nadu and Kerala in India. Air India Express operates flights from airports in Kerala, Punjab and Mangalore to Dubai, Abu Dhabi, Al Ain, Muscat and Salalah in the Middle East and Singapore in the east. The airline was established in May 2004, after a long demand from Malayalee expatriate communities living in Middle East.

Destination

Air India serves 60 domestic destinations and 31 international destinations in 19 countries across Australia, Asia, Europe and North America.

An Airbus A321 at Bandaranaike International Airport in Colombo, Sri Lanka.

Short-haul routes

Air India's short-haul routes mainly include domestic cities and cities in South East Asia and South West Asia. For short-haul routes Airbus A320 family are used. The Boeing 787 aircraft was introduced on selected domestic routes on 19 September 2012.
Long-haul routes The airline has long-haul destinations in East Asia, North America, and Europe which are served using Boeing 777-200LR and -300ER aircraft. The Boeing 787 aircraft was introduced on long-haul routes on 15 October 2012. However, Toronto was terminated as a destination in 2012, utilizing Newark Liberty International Airport and JFK International Airport, both in the New York City Metropolitan Area, as viable gateways both to the eastern United States as well as Canada. In 2013 the airline announced plans to launch new long haul flights to Rome, Milan, Moscow, Birmingham, Melbourne and Sydney with the 787's.

Codeshare agreements
Air India has codesharing agreements with the following airlines (as of June 2013): Air Canada Austrian Airlines EgyptAir Singapore Airlines South African Airways SriLankan Airlines Swiss International Airlines Turkish Airlines

Adria Airways Aeroflot Alitalia Air Mauritius Korean Air

Ethiopian Airlines Kuwait Airways Lufthansa

Traffic

Air India RPK over the years

Since inception, Air India has been witnessing a continuous growth in revenue passenger kilometres. Prior to the jet age in 1960s, Air India flew mostly unscheduled flights and saw low numbers of traffic. As the airline introduced more scheduled flights, there was a small upward trend during the 60s. During the 70s, Air India introduced the Boeing 747, which carried more passengers over longer distances. During the period, RPKs rose to over 5000. As newer, more efficient aircraft like the Airbus A300, Airbus A310, the Airbus A320 and newer versions of the Boeing 747 were introduced, Air India quickly expanded its network and by the year 2000, it crossed the 10000 mark. Air India continued expanding its services by taking the delivery of different variants of the Airbus A320 family and the Boeing 777 aircraft. Air India introduced non-stop flights to North America, Europe and eastern Asia. With the merger of Air India and Indian Airlines, air travel in India became very popular, and by 2010, the traffic tripled to over 30000 RPK

Fleet

Airbus A321-200

Airbus A330-200

Boeing 747-400

Boeing 777-200LR

Boeing 787-8 at Indira Gandhi International Airport

Current
As of September 2013, the Air India fleet consists of the following aircraft (including leased aircraft, excluding subsidiaries):
Air India Fleet Passengers Aircraft In Service Orders F Airbus A319-100 24 144 144 5 Aircraft on Dry Lease J 8 Y 114 Total 122 10 Aircraft Sold and Leased Back Notes

 Airbus A320-200 18 19

168

168

20 126

146

6 aircraft sold and leased back. Old classic aircraft to be replaced by 19 new dry leased ones Plans to induct 19 new aircraft equipped with winglets on dry lease by 2015 with complete economy configuration 12 Aircraft Sold and Leased Back Only Dry Lease. To be returned to leasers and replaced by Boeing 787-8 Dreamliner. 2 aircraft sold and leased back 5 To be sold by 2015

Airbus A321-200

20

20 152

172

Airbus A330-200

24 255

279

Boeing 747-400 Boeing 777-200LR Boeing 777-300ER Boeing 787-8 Total

5 8 12 10 99

3 17 20

12 8 4

26 385 35 195 35 303 18 238

423 238 342 256

Replacing Airbus A330-200

Fleet info The Boeing customer code for Air India is 37, meaning a model name of, for example, a 747437 (an Air India 747-400). As of January 2013, the average age of the Air India fleet is 8.3 years. On 4 August 1993, Air India took the delivery of its first Boeing 747-400, registered VT-ESM and named Konark. The aircraft was officially withdrawn from use and scrapped at Mumbai in May 2011.The airline's first Boeing 777200LR aircraft was delivered on 26 July 2007. The aircraft was named after the Indian state of Andhra Pradesh. Air India received its first Boeing 777-300ER aircraft on 9 October, the same year. The aircraft was named Bihar. Air India received its first Boeing 787 Dreamliners aircraft on 6 September 2012 and commenced flights on 19 September 2012. As of September 2013, Air India operates 6 Boeing 747s, 20 Boeing 777 family aircraft, and 8 Boeing 787 Dreamliners. Apart from the Boeings, Air India also operates a wide range of Airbus aircraft. In 1989, Indian Airlines introduced the Airbus A320-200 aircraft, which Air India now uses to operate both domestic and international short haul flights. In 2005, Indian Airlines introduced the smaller, A319, which are now used mainly on domestic and regional routes. After the merger in 2007, Air India inducted the biggest member of the A320 family, the A321, to operate mainly on international short haul and medium haul routes. At the same time, Air India leased the Airbus A330s to operate on medium-long haul international routes. As of February 2013, Air India operates 62 A320 family aircraft and 2 A330-200s. New aircraft orders On 11 January 2006, Air India announced an order for 68 jets 8 Boeing 777-200LR World liners, 15 Boeing 777-300ER, 18 Boeing 737800 and 27 Boeing 7878 Dreamliners. The 18 737s ordered were later transferred to Air India Express. Air India has taken the delivery of 8 Boeing 787-8 Dreamliners so far. All remaining Dreamliners are expected to be delivered by 2016.

Aircraft operated
Aircraft operated by Air India (1970-1999) Total Operated Aircraft operated by Air India (2000present) Total Operated 24 20 2 1 3 1 3 3 (5 sold to Etihad Airways) 12 8

Aircraft

Introduced

Retired

Aircraft

Introduced

Retired

Airbus A300100 Airbus A300200 Airbus A310300 Airbus A320200 Boeing 747200 Boeing 747300 Boeing 747400 Douglas DC-8600F Douglas DC-8700F Ilyushin Il-62M Lockheed L1011 TriStar

1994

1994

Airbus A319-100 Airbus A321-200

2005 2007 2007 2007 2006 2006 2005

Active Active Active 2007 2008 2010 2011

1982

2002 Airbus A330-200 Boeing 757-200 Boeing 767-300

29

1986

2012

32

1989

Active Boeing 777-200

14

1971

2000

Boeing 777-200ER

1988

2008

Boeing 777-200LR

2007

Active

14

1993

Active

Boeing 777-300ER Boeing 787-8

2007 2012

Active Active

11

1977

1986

1983

1995

1989

1989

1995

1996

Apart from the aircraft listed above, Air India operated several other aircraft. Air India operated the De Havilland Puss Moth, De Havilland Fox Moth, Waco YQC-6, de Havilland Dragon Rapide,Percival Petrel, Douglas DC-2, DC-3, Vickers VC.1 Viking, Lockheed L-749 Constellation, Douglas DC-4 and the Lockheed L-1049 Super Constellation up-to 1960. Thereafter, Air India started operating the Boeing 707 and the De Havilland Comet.

Livery
19702007 livery Air India's livery was mostly painted in red and white colors. The bottoms of the aircraft remain metal and unpainted but the upper portion is given a white background along with the airline's name written in red. The name is in Hindi on one side and in English on the other. The painted on red palace style carvings on the outside of the windows refer to their slogan "your palace in the sky" which is written on the back of the aircraft. Near the noses of Air India aircraft, the air plane is given a name. Most planes are named after powerful Indian kings or landmarks. Finally, the tail is mostly red with again, the carrier's name written in Hindi on one side and English on the other. In 1989, to supplement its "Flying Palace" livery, Air India introduced a new livery that was mostly white with a golden spinning wheel (as seen on the flag of India) on a red tail. Only applied to around a half of Air India's fleet, the new livery did not succeed, as the Indian flying public complained about the phasing out of the classic colors. The livery was dropped after two years and the old scheme was returned. 2007 Pre-merger livery On 15 May 2007, Air India refreshed its livery, making the Rajasthani arches along the windows slightly smaller, extending a stylized cheat line from the vertical tail of the aircraft to the nose, and painting a small portion of the underbelly red. Additionally, engine nacelles are now deep red, and a gold-colored version of the airline's stylized Konark trademark now adorns both the vertical tail and engine nacelles. It was only applied to a few aircraft due to the fact that shortly after its introduction, Air India merged with Indian 2007- Post-merger livery On 22 May 2007, Air India and Indian unveiled their new livery. The logo of the new airline is a Flying Swan with the Konark Chakra placed inside it. The Flying Swan has been morphed from Air Indias characteristic logo, The Centaur whereas the Konark Chakra is reminiscent of Indians logo. The new logo features prominently on the tail of the aircraft. Individually the Konark Chakra also features on all the engines of the aircraft. The choice of colors namely red for "Flying Swan" and orange for "Konark Chakra" are meant to signify vigor and advancement. Further the colors also have a strong association with two carriers thereby retaining the earlier imagery of traditional hospitality and service. While the aircraft is ivory in color, the base retains the red streak of Air India. Running parallel to each other is the Orange and Red speed lines from front door to the rear door, subtly signifying the individual identities merged into one. The brand name Air India runs across the tail of the aircraft in Hindi.

Services
Cabin

Business Class seats on board the Boeing 777-200LR/777-300ER

First Class seats on board the Boeing 777-200LR/777-300ER

The Boeing 777-200LR/777-300ER aircraft has three classes of service: first class, business class, and economy class. As a full service airline, Air India serves meals on all classes of travel. Air India's first class is available on their Boeing 747-400 and 777-200LR/777-300ER aircraft. Each seat has a 180degree recline, sleeperette. The First Class cabin in Boeing 747-400 seats just 12 passengers and has a two-abreast seating pattern. All passengers aboard first class are served with cocktails and meals are served on Royal Doulton tableware. Passengers can choose from Grilled Lamb Chops and Parmesan Cheese Omelets to Chicken Malai Kabab and the Shahi Korma. Champagne is also served.

In-flight entertainment
Air India's Airbus A320family aircraft are all equipped with Thales i3000 in-flight entertainment system. Passengers can choose from five channels, airing both newer as well as classic Hindi movies, Hollywood action movies, Indian television soap operas, and Bollywood music videos. Air India's leased Airbus A330s have widescreen displays in Business and Economy classes but no personal IFEs. The Boeing 777-200LR/-300ER, Boeing 747400 and the airline's newly acquired Boeing 787 aircraft use the Thales i4000, i5000, and i8000 audio-video on demand in-flight entertainment systems respectively. Passengers can choose from a wide range of English, Hindi and other regional language movies in India. Showtime is the name of the entertainment guide Air India has made available on all of its flights. Apart from that, Air India also runs an in-flight magazine called Shubh Yatra, which in Sanskrit, means Happy Journey. Shubh Yatra is a bilingual magazine. It is published in both English and Hindi. The magazine covers a variety of issues from travel and culture to lifestyle and entertainment.

Frequent flyer programme

The logo of 'Flying Returns'

Flying Returns is Air India's frequent flyer programme. It is Indias first frequent flyer programme and is claimed to be one of the most rewarding programmes in the region. The programme is also shared by all other Air India Limited carriers. A member can earn mileage points and redeem them for award travel. On higher fares, such as full fare economy, and on Business/First Class, passengers will also earn bonus miles, and clock mileage points. The points can also be used for awards travel on Lufthansa and Singapore Airlines. Online check-in Air India passengers confirm their presence on a flight via the Internet and typically print their own boarding passes, through a feature called online check-in. Air India provides this feature to passengers originating from Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai. Air India opens its check-in window 48 hours before the scheduled time of departure for domestic and international flights originating from the six metro cities, and 24 hours prior to scheduled departure of flights from the remaining cities.

Premium lounges

Air India London Heathrow Airport lounge

Air India's Maharaja Lounge at John F. Kennedy International Airport in New York City.

The Maharaja Lounge (English: "Emperor's Lounge") is offered to First and Business class passengers. Air India shares lounges with other international airlines at international airports that do not have a Maharaja Lounge available. There are six Maharaja Lounges, one at each of the six major destinations of Air India: International John F. Kennedy International Airport (New York City) London Heathrow Airport

India Bengaluru International Airport (Bangalore) Chhatrapati Shivaji International Airport (Mumbai) Indira Gandhi International Airport (Delhi) Rajiv Gandhi International Airport (Hyderabad)