Air India at it again

Air India’s Fleet Buy Under Scrutiny

After reading this article i was really compelled to write about how this article is misleading. Here we see the typical Air India style of blaming everything else except their own incompetence. In the past they had made a huge hue and cry asking for compensation from Boeing - which was relevant, for the delays and mishaps in the new B787 Dreamliner. 

In this article they are clearly sidelining the major issues, which relate to:

a. Botched merger of Air India and Indian Airlines

b. Air India Express

c. Poor Marketing

d. Low levels of employee productivity & overstaffing

e. Lack of a 'hub & spoke' concept

f. Over-sized premium cabins

Air India, to begin with was a carrier that was doing just fine, until the government decided to merge both national carriers (one domestic and one international) to create a better scale of economies, contrary to this the airline has just fallen flat on its face. This exercise also undertook the takeover of Air Alliance - a regional carrier with ancient aircraft and routes that were dictated by the government to regions where private carriers would not operate as they were far to unprofitable. Indian Airlines, in the fag end of its operations also started international services to the Gulf region and South East Asia - making it also an international carrier. The merger of the two airlines didn't bring much 'economies of scale' to the operations, instead it just added more financial burden on the already burdened Air India. 

Another new company within Air India? Yes, joining the bandwagon, Air India ventured into a low cost model fame - Air India Express, which operates Boeing 737s. Air India (parent company) now has a mix of B777, B787, A330 (leased), B737, A320, A321. Most airlines prefer not to have a mixed fleet operation, Air India on the other hand has done exactly what increases the costs - operate a mixed fleet. Air India Express, should have been a separate entity, but that didn't happen. Now, just like Jet Airways, there is a confusion in the market which brand is which. But nothing beat's Jet Airway's JetKonnect, JetLite (now merged into JetKonnect) and Jet Airways. Air India express mostly operates its flights from South India to the Gulf region, operating on a low cost model they still offer food and drinks on board.  Confusion!

I can also go on and on about the low levels of productivity of Air India and the age old issue of overstaffing in the company. This is all dictated by the labor unions so Air India can not kick out those staff who are 'ageing' and growing 'horizontally'. Ground operations are also hugely overstaffed at most stations they serve. Just and example of under productivity - Air India & Air India Express both are culprits of this. The crew operating to the gulf get to stay overnight and man the next day (24 hours) later return journey. Let's compare this with the likes of Jet Airways, Emirates, Qatar Airways, Etihad etc., who operate the same routes as Air India, with the same flight time, they are all expected to work the return journey. Most of the routes with these airlines DO NOT allow the cabin crew to overnight in the outstation city. Why Air India? Longer flight, its a norm, but the short flights to the gulf do not work into the stipulated number of working hours. Yes they might be overstaffed, so lets use the extra staff and give a crew change at Gulf destinations. Truly amazing how Air India is indeed below the industry curve. 

Marketing is another area where Air India is lacking. New destination announcements are done way to close to the launch date of the flight, giving no lead time to buffer in for bookings, then ultimately they cite low yields and loads, and surprise, one fine day the route is off the charts. Personal opinion here - their uniforms look horrendous!

Air India, sometimes tends to open routes just for the 'prestige' value. Or so it seems. Some of the destinations, like Shanghai don't make much sense, as Guangzhou would have been a better choice. Or even Narita in Tokyo. Most of these routes not make money. Recently there was a very well written article Air India loses money on all international flights, but two, do read and check out the figures for yourself. They lack a 'hub and spoke' concept where by they are missing out on a lot of connecting traffic from Europe to Asia and Australasia, now that they have started their triangular route of Delhi - Melbourne - Sydney. Gulf region is a major money making route (this has been said time and again) but Air India doesn't get the hint. They refuse to increase flights to the Gulf, or even if they do - its not advertised. Their routing to the Gulf region, is quiet illogical too - one example is the Kuwait - Ahmedabad - Chennai flight. Capturing most of the Indian expats in Kuwait - Gujaratis (Boris) and the Tamilians, but that's a way too long a flight to fly from Kuwait to via Ahmedabad Chennai on a A320 (narrow bodied aircraft), even Kuwait Airways operates a direct flight to Chennai with its bigger aircraft - A310. 

Air India's wide bodied fleet is plagued with an oversized premium cabin. Why do they need more than 20 seats in the premium cabin? Lets face it - India is a price sensitive market. People mostly fly in Economy, let's add more seats there than the Business class cabin. They also operate a First class cabin, which is also not viable to any of the routes. Their economy class seats are luxurious at a seat pitch of 34in on the wide bodied aircraft, but let's face it, while most airlines offer only 31 to 33 inches, does Air India really need to offer a full 34in, when the yields per seat is really low? They are not a premium carrier, and if they aim to be one, well there's a long, long way to go still. 

I guess i'm done bashing Air India, i am no expert, but i am sure Air India can relive its old glory days once the proper management is in place. There is a long way to go to the road to recovery, ordering the new aircraft might have been one of the reasons for the downfall, but trust me, it no where measures to the reasons that are mentioned above. Air India management needs to stop blaming and maybe pull up their socks, take the blame and start revamping.