recent 500 planes deal

1. AIR INDIA
By Manikanta & Sharon
Steve

2. HISTORY
FOUNDED 15 OCTOBER 1932; 90 Years
ago(as TATA Airlines)
Founder J.R.D . TATA
Parent company Air India Limited ( Tata group)
Head quarters Airlines House , Delhi
Key people N.Chandrasekaran ( chairman)
campbell Wilson(CEO &MD)
Revenue Rs.26,430.50 crores
Profit Rs. -8,556.36 crores
Total assets Rs.52,352.18 crores

3. JOURNEY MAP
■ Air India Net profit rises to Rs 333(1992)
■ Air India is the oldest , most staffed international fleet. The
aircraft is 14 years old . The total number of staff per air craft is
750(2000)
■ Air India ends fiscal year with a loss of Rs . 448crore (2008)
■ Accumulated loss Rs. 7000 crores , Working capital loan Rs
.16000 crores, total debt Rs. 79000 crore (2010)

4. CASE ON AIR INDIA
■ According to government sources , Air India has a debt of about
Rs. 58,000 crores at this time , and it can be said that Air India is
running at huge loss . According to an estimate , Air India is
incurring a loss of 20-25 crores per day. Therefore the loss of Air
India in a month is about 750 crores .
■ AIR INDIA signs biggest deal to buy 500 new aircraft from air
bus , Boeing air India will get 250 air bus planes -210 single
aisle a320neos & 40 wide body a350s. It plans to get 220 Boeing
aircraft , 190 of its 737 MAX narrow body jets , 20 787 wide –
bodies .
■ After Record Aircraft deal, Air India to hire nearly 900 pilots ,
4200 cabin crew in 2023

5. JH
KJ

6. STRENGTHS
gijh
STRENGTH WEAKNESS
 AIR INDIA has been the largest
carrier.
 Political intervention
 Updated fleet and competent
repairs and maintenance expertise.
 Low profitability
 Advanced information technology
systems .
 Growing competitor base
 It has a good reputation in both
international and domestic markets
.
 Lack of clarification about
strategic path
 Has a good financial backing up
from the government.
 Low productivity , low
power usage
 old age good will

7. OPPORTUNITY
■ Expansion of routes &
international
destinations
■ Solve internal issues.
■ Tourism would rise
demand.
■ Increase in India's GDP.
■ Opportunity to launch
low –cost carrier
THREATS
■ Small local airlines & their
prices
■ Rising fuel costs.
■ Losing market share
■ Rising labour costs.
■ Indian railway ministry has
drastically improved their
speed & services in their
long distant routes attracting
passengers away from air
services

8. COMPETITIVE ANALYSIS
■ Whether the famous Maharaj mascot or the fact that the
public sector under taking is backed by the government &
many others have collectively helped Air India to emerge as
the largest international carrier out of India
■ It commands 16% of market share through its international
operations
■ Cost structure plays a pivotal role in the operations &
competitive landscape in the industry which consists of fuel,
administrative cost , rental of flight equipment's , ticketing
, sales & promotions , user chargers flight crew salary .
■ Air India Express Limited compete with companies like
Indigo, Jet Airways , Go Air, Air Asia, Jet Airways , Spice jet ,
Eithad , Oman Air, Thai air ways , Singapore Airlines

9. Market strategy
■ The brand utilizes undifferentiated techniques like value based
situating strategies are added
■ Air India utilizes the blend of socioeconomics , psychographics
,& geographic divisions systems .
■ Marketing campaigns promote products through different types
of media such as T.V, radio, print, online platforms & sends
meaningful msg to connect with the customers .
■ Covid protocols & some undeniable procedure before boarding
the flight

10. SEGMENTATION STRATEGY
■ Segmentation strategy elements like age ,sex &
psychographics / distinctive demographic assume a significant
part in gathering the populace based on comparable qualities
in the business of thus company , in particular .
■ The brand uses an undifferentiated target strategy due to
which it is losing out market share in the competitive market.
■ It uses a mascot to create a distinctive image in the mind of
the consumers the positioning strategy designs the company’s
image & product to occupy a significant place in the
consumer’s mind. It uses a value based positioning strategy
for creating a brand image of hospitality & a rich strategy.

11. BRAND EQUITY& DIGITAL PRESENCE
■ Brand equity is the value premium generated from a product
when compared to the generic equivalent & regular upgrades
■ WON READER’S DIGEST TRUSTED BRAND GOLD AWARD RECEIVED
IATA SAFETY AUDIT FOR GROUND OPERATIONS .
■ Won emerging freighter services of the year award at Air Cargo
india exhibition& conference.
■ Won Galileo Express travel world award , for best short haul
international Airline from India .
■ Won PATWA international award at ITB ,berlin as best Asian
airlines.
■ AIR INDIA IS HOOKED UP WITH DIFFERENT SOCIAL MEDIA & TO
BE ACTIVE ON EACH PLATFORM IS AMUST.

12. 5P’S strategy
■ Air India offers 3 separate classes (economy, first & business
class ) different customer segments with its PRODUCT STRATEGY
■ PRICING STRATEGY ; AI has an affordable pricing policy for
economy class customers & premium for remaining 2
■ PLACE STRATEGY ; AI flies to 70 international n 100 domestic
destinations.
■ PEOPLE STRATEGY ; SKILLED employees (many employee are
sports persons who honored with national sport awards )
■ PHYSICAL STRATEGY ; Actual place where a company does
business this includes interior design , logo, location , its also has
a state of the art fleet comprising of Boeing and AIR BUS
aircraft .

13. CONCLUSION
■ AIR INDIA has established its position as India's largest &
most effective air carrier on all fronts , their service is up to
date & relevant , serving millions of passengers on a regular
basis .
■ They aggressively position themselves in the market using a
variety of promotional tactics , including campaigns & social
media , to keep consumers informed about the future
packages .
■ Consumers see their low price as a competitive advantage &
selling feature . Overall, their marketing & commercial
tactics have been effective in propelling them to new
heights while remaining innovative

14. A mistake can cost you millions but
…..
A learnt lesson can bring back
billions