Air India and the Star Alliance (Part II)

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Jul 27, 2011, 3:37 pm

#106

kiwiandrew

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In addition to everything else this article probably couldn't have come at a worse time for AI

http://timesofindia.indiatimes.com/b...ow/9389079.cms

Air India now faces a risk of being declared a non-performing asset by financial institutions/banks and a big question mark on its survival. The debt-laden airline is on the verge of defaulting on payment of installments on working capital loans of about Rs 22,000 crore for the third month in a row, following which lenders may take this step. Since April, AI has been defaulting on payment of interest on working capital loans as well as service tax.

I had heard that they weren't in great financial shape, but this sounds pretty serious.

Jul 27, 2011, 3:47 pm

#107

Yaatri

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LH can buy AI and get all the slots it wants at any Indian airport.

Why don't they just increase the credit limit of AI? Doesn't that restore one's credit worthiness?

Jul 27, 2011, 3:51 pm

#108

onlysuites

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Quote:

Originally Posted by Yaatri

Doesn't that restore one's credit worthiness?

Jul 27, 2011, 4:09 pm

#109

B747-437B

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Quote:

Originally Posted by Yaatri

The pilots are guilty of at least gross insubordination.

The pilot unions are guilty of delusion.

Jul 27, 2011, 7:42 pm

#110

SQ421

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Quote:

Originally Posted by Yaatri

Why don't they just increase the credit limit of AI? Doesn't that restore one's credit worthiness?

Lets see if that works come August 2nd

Jul 27, 2011, 7:49 pm

#111

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Quote:

Originally Posted by kiwiandrew

Watch our babus ride in on their white horses with bailout v.2

Jul 27, 2011, 9:00 pm

#112

toflyer

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there is no way AI is going to make the July 31st deadline after this:

http://economictimes.indiatimes.com/...ow/9389540.cms

Jul 27, 2011, 9:43 pm

#113

SQ421

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Quote:

Originally Posted by toflyer

there is no way AI is going to make the July 31st deadline after this:

http://economictimes.indiatimes.com/...ow/9389540.cms

Ridiculous.

Repeating what I mentioned in one of the other threads re. AI... Let the Airline collapse and allow the private players to pick up the pieces.

Jul 27, 2011, 9:48 pm

#114

toflyer

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Quote:

Originally Posted by SQ421

Ridiculous.

Repeating what I mentioned in one of the other threads re. AI... Let the Airline collapse and allow the private players to pick up the pieces.

totally agree.

I see something like this in star alliance/AI future:

July 31 - Star Alliance extends AI's deadline to Sept 30.
Aug-Sept - AI has more problems
Oct - Star alliance says no to AI
Nov - Govt bails AI out
July 2012 - Star Alliance invites Jet to join the alliance

Dec 2012 - Jet joins star alliance
Jan 1/2013- I start getting all my status miles on Star Alliance using Jet!!

Jul 27, 2011, 10:22 pm

#115

SQ421

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Presenting - more ar$e backwards stuff from Air India.

http://economictimes.indiatimes.com/...ow/9075853.cms

Quote:

"Even if we optimally utilise the current fleet, there's no way it can generate the revenue required to meet our existing liabilities. We require over 100 more planes. We have informed this fact to the government," a top management official had said some time back.

This had come up a few months ago as well. It seems AI has a less than ideal staff to aircraft ratio, and unlike almost any sensible and prudent business, the ideal way to correct that ratio isn't to shed staff numbers, but to add more aircraft (and debt) to the company.

With geese like these in the "Top Management"; the vultures can't be too far behind.

Jul 27, 2011, 10:38 pm

#116

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Quote:

Originally Posted by toflyer

there is no way AI is going to make the July 31st deadline after this:

http://economictimes.indiatimes.com/...ow/9389540.cms

Didn't realize it was so bad. No pay for the past few months.

Jul 27, 2011, 10:40 pm

#117

Yaatri

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Quote:

Originally Posted by SQ421

Ridiculous.

Repeating what I mentioned in one of the other threads re. AI... Let the Airline collapse and allow the private players to pick up the pieces.

With this kind of mess, I don;t see how AI hopes to get into any alliance on its own, without Govt backing.

PanAm is gone. TWA gradually declined, until it's remnants were absorbed by AA. It would not be unusual if AI died too. The classification sweeper does not go with a 23000 per month salary. What does a sweeper do? What other AI employees probably consider beneath them? why can't ramp staff do the job?

Jul 27, 2011, 10:48 pm

#118

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Quote:

Originally Posted by Yaatri

The classification sweeper does not go with a 23000 per month salary.

Have BOM wage levels increased so much or is this another case of inflated wages?

Jul 27, 2011, 11:06 pm

#119

Yaatri

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Quote:

Originally Posted by UA Fan

Have BOM wage levels increased so much or is this another case of inflated wages?

I think, it's the latter. Co-pilots are paid from $54,000 to $136,000 and Commanders, from about $110,000 to $205,000 annually. These numbers seem to be high even when compared to the U.S. Pilots make very little initially in the U.S.

The article also mentioned that pilots are going to other airlines, which pay even more. I don't see, how the airlines can prosper with that kind of salaries!

I mentioned PAnAM and TWA as they couldn't survive with the salary structure of legacy carriers. AI needs to change, or it would die.

Last edited by Yaatri; Jul 27, 2011 at 11:32 pm

Jul 27, 2011, 11:21 pm

#120

SQ421

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Quote:

Originally Posted by Yaatri

I think, it's the latter.

I'd say its a bit of both. Though a "sweeper" earning 23k/month is likely someone who's been there for a fair few years, and the 23k includes his basic salary plus various allowances that make up the salary in India.

(Allowances - TA/DA and other legit allowances, which for some reason are classed differently in the pay summary).