The ailing Maharajah
Jul 1, 2009 | 5:40 am
#1
Original Poster
Suspended
Join Date: Jan 2002
Posts: 22,778
The ailing Maharajah
India's flag carrier, owned and operated by the Government, is deep financial trouble.
What ails India's troubled maharajah?
There was a pretense to privatise the airline around 2000-2001, but it did not materialise. Privatising it is the best solution, or let Tata run it like they used to.
India's state-run and oldest airline Air India is bankrupt. Shantanu Guha Ray explains what ails the airline which carries one of India's most enduring mascots - the maharajah.
They are calling it the case of the bankrupt maharajah.
Saddled with lost man-days, unwarranted expenses, unviable routes and huge salary bills, the state-owned Air India - the airline with a mascot of a maharajah or Indian king - is in a mess like never before.
They are calling it the case of the bankrupt maharajah.
Saddled with lost man-days, unwarranted expenses, unviable routes and huge salary bills, the state-owned Air India - the airline with a mascot of a maharajah or Indian king - is in a mess like never before.
There was a pretense to privatise the airline around 2000-2001, but it did not materialise. Privatising it is the best solution, or let Tata run it like they used to.
Jul 1, 2009 | 6:39 am
#2
Join Date: Sep 2007
Location: SFO
Programs: AA EXP (One World Emerald), Hilton Gld, Marriot Slvr
Posts: 252
On a side note, I find it interesting that in India the govt. run enterprise is messed up and talk is of pushing it to the pvt. sector/pvt. control to bring things back to shape. In the USA GM and Chrysler are privately held companies that are being pushed to have some govt. "guidance" to set them right!
Jul 1, 2009 | 7:56 am
#3
Original Poster
Suspended
Join Date: Jan 2002
Posts: 22,778
Given that in all probability AI needs not just financial discipline but a fundamental shift in "mentality" I don't know if just handing it to Tata's (or any private enterprise...) is going to work. That said, Tata's have made it their business to take up "bankrupt" brands and try rebuilding around them (Jaguar et. al.).
On a side note, I find it interesting that in India the govt. run enterprise is messed up and talk is of pushing it to the pvt. sector/pvt. control to bring things back to shape. In the USA GM and Chrysler are privately held companies that are being pushed to have some govt. "guidance" to set them right!
On a side note, I find it interesting that in India the govt. run enterprise is messed up and talk is of pushing it to the pvt. sector/pvt. control to bring things back to shape. In the USA GM and Chrysler are privately held companies that are being pushed to have some govt. "guidance" to set them right!
Tata's legacy did not begin with Jaguar.
Jul 1, 2009 | 7:11 pm
#5
Suspended
Join Date: Jul 2007
Posts: 866
AI's decline
Unfortunately, this also means we have to forget about any hopes of AI joining *A 
Probably AI will change into a budget carrier mainly - i.e. AI Express model - with the 'full service' version gradually fading away. Sad.
Probably AI will change into a budget carrier mainly - i.e. AI Express model - with the 'full service' version gradually fading away. Sad.
Jul 1, 2009 | 11:48 pm
#6
Join Date: Jan 2009
Location: Queens, New York City.
Programs: Delta Diamond Medallion
Posts: 120
There is an economic correction happening throughout the world - bloated corporations such as Air India need to become more efficient - India just can't keep sustaining ailing industries. It appears that countries are forced to act only when a crisis comes along - think of this as a blessing in disguise - it might hurt in the present situation but the corporation will come out stronger in the end and better compete in the global arena.
Jul 2, 2009 | 12:53 am
#7
Join Date: Sep 2005
Location: BOM-WAW-EWR
Programs: UA*G (1K again), Sixt Plat, AC*G, LH FTL, AI*G *was*: SQ QPP01 & SK EBS/EBG, LH SEN, AA EXP, 9wPlat
Posts: 8,750
Jul 2, 2009 | 5:12 am
#8
Join Date: Sep 2007
Location: SFO
Programs: AA EXP (One World Emerald), Hilton Gld, Marriot Slvr
Posts: 252
The service part of the "full service" has long disappeared! The question is can the current version of "who cares" attitude be changed at least sufficiently to do justice to a LCC? (Having flown Southwest a few times I believe LCC's can have a better approach to passengers than many major carriers when flying Y....)
Jul 4, 2009 | 3:29 pm
#10
Join Date: Sep 2005
Location: BOM-WAW-EWR
Programs: UA*G (1K again), Sixt Plat, AC*G, LH FTL, AI*G *was*: SQ QPP01 & SK EBS/EBG, LH SEN, AA EXP, 9wPlat
Posts: 8,750
It took longer to go through security than to drive to the airport, due to this mass migration of AI pax...
And LH is op-upping everyone and their grandmother tonight into C as well, just my luck!
Jul 5, 2009 | 8:43 pm
#12
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,077
AI is a mess and it's been that way for decades. Until a couple of weeks ago, IT was the Indian carrier that was most likely to be the major Indian-based airline financial flop this year, but for one reason or another neither AI/IC nor IT seems destined for the incinerator in the next five to six months.