Air India Strategy

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1.0Executive Summary
Air India began its services in 1932 and has been operating in India for the last 78 years. It is the oldest passenger flight of India. The government of India holds 49% of Air India’s share with an option to acquire 2% more since 1946. This made Air India a public sector thus enabled it to operate flights internationally. In spite of being a public sector company Air India has been running in loss for the past 10 years.
A SWOT analysis was conducted to analyze the strength of Air India that sets it apart from its competitors and its weakness were identified which would provide an insight as to why Air India were running a loss and the opportunities and threats provide information of the possible areas of
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2) Large fleet size: Air India has the largest fleet size when compared to its competitors in India. It has a total of 111 fleets and 16 leased fleets. Out of the 111 fleets 27 of them are Boeing Dreamliner (Jhadav 2009).
3) Domination on international routes: The Government of India has restricted the usage of traffic rights when flying international routes to Air India. This prevents other private carries from attaining competitive advantage in global market (Bhatia et. al 2003).
4) 180 Bilateral Agreements and rights to fly to 96 destinations: Apart from flying to 96 destinations. Air India’s strategic relations with Lufthansa led to attainment of 19 slot pairs to Frankfurt. Air India shares code with 14 other airlines which provides it joint marketing and code sharing facilities. Through 180 Bilateral Agreements, Air India has obtained 38.09million seats (Singla 2009).
Weakness
1) Slacking human resource management: Compared to other airlines whose plane-to-staff ratio is 150 and each cabin crew member works 70 hours a week, Air India’s is 210 and 50-55 hours a week respectively. The staff’s performance linked incentive at Air India is 65.92%. 60% of Air India’s expenditure goes into paying the employee’s wages but
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