Pot-Pourri of the Week ! ( 27 July 2013 ) ISSUE - VII

Chocks-on….Pot-Pourri of the Week ! ( 27 JULY 2013 )   ISSUE – VII

 

…Vow !! the Air India Razzmataaz….!!..Glamour & Glitz…

Birmingham – here I come….. …..

…..a gala evening of dance, drama and off-course YUM…YUM…YUMMY  Indian food to accompany, was organised recently in Birmingham’s International Convention Center, to, announce the 3^rd arrival of Air India back into Birmingham on August 01, 2013….A strong gathering attended by local community leaders, business leaders, travel agents and the media, a virtual who’s and who were the hallmark of the event.

Friends, before the next issue of Chock-on gets in your inbox, Air India will be very much in Birmingham, after a hiatus of 5 years. Good Luck & Bon voyage Air India !!!

Oops ! Is AI’s B-787....in the ‘ Firing Range ’ ? Hope Not !

Fire & B-787….are no strange bed-fellows anymore …..

Fire seems to be maiming the B-787’s….We have all read about fire incidents in Japan Airlines ,Japan’s ANA and Ethiopian AirlinesB-787’s, and now Air India.  Luckily for Air India there was no fire.In the rear galley area, due to overheating of the oven, a lot of smoke billowed out from the galley, as per Reuters. .The DGCA has ordered investigation into the incident.

"Prima facie we feel that it's something to do with the oven, not with the machine (plane) as such," said Arun Mishra.

Qatar Airways grounds one 787, cites 'minor' issue……

… but two people familiar with the matter, asking not to be identified, said smoke had been reported near an electrical compartment while the jet was on the ground in Doha. A failure in a similar bay caused a fire during a test flight in 2010……

….So, what they said……

Shri Ajit Singh, Hon MoCA, …..on operations of A-380’s into India…..

.... We have to consider the airport infrastructure…. what will be the impact on security queues or ground handling after an airbus A380 plane lands with 550 passengers at an airport. Can any other aircraft land at that time. I have asked the ministry to find out time slots when these problems would not be there so that other airlines and their passengers are not inconvenienced……

Shri Rohit Nandan, CMD, Air India…..on partnership with Make My Trip….

Air India launched Air India Holidays which offers ‘…. customers a unique, value-added product, leveraging the strength of our network and the credibility of the Air India brand… We are particularly happy to partner with MakeMyTrip, who bring to the initiative their expertise and domain knowledge of the online travel and leisure market….”

Senior Air India Official…on the US$ 5 million bridge loan…..

…. “We have got financing for all the five Dreamliners and have mandated Deutsche Bank and Investec Bank for arranging the bridge loan for this,”… Good news as it underscores the faith of the industry and the financial institutions in the brand Air India.

 

Mr. John Leahy, Sales Chief, Airbus Industrie……on B 787-War in the Open…

It's pretty obvious that this airplane is not reliable and does not have mature systems,".. What they've got is an architecture that is not mature... It's going to take a lot of time, a lot of money, a lot of cancelled flights. And maybe redesign quite a few systems onboard."…

Mr Max Kingsley Jones – Chairman, Airline Business on Mr James Hogan winning the Aviation Industry’s Executive Leadership Award in London….

…’ In the past 12 months many airlines around the world have struggled with their business during challenging economic times but James has spearheaded a remarkable growth story and the panel was delighted to make him the aviation industry’s executive leader of the year.”

Mr Mittu Chandilya, CEO, Air Asia India…..on the work culture in Air Asia…..

Our pilots fly and check their own planes. Our flight crew do everything: Prepare for deplaning, boarding, cleaning, having services ready, inflight sales; I have three people for taking bags off the aircraft. For the Air India flight we took here, there were 15….

Mr Parvez Damania of Damania Airways…..on resignation of Neil Mills, Spicejet…

….“Indian promoters hire foreign CEOs because of their experience in aviation, but generally do not give up control of management,” and this leads to friction….

Mr Raj Halve, Management Consultant…. on resignation of Neil Mills, Spicejet…

…any business which bleeds cash on a daily basis puts pressure on the owners. The owners often don't realise that it is not the managers but the operating environment which causes the losses. In aviation, the costs are fixed but returns are not….

Michael O’Leary, CEO, Ryan Air…..

….. says he’d like to commence flights to America in a few years—and with $10 fares….

….Events & Industry News….

Long Haul LCC ( LHLCC )…. Norwegian

…and now it is the LHLCC.... Norwegian became the eighth European carrier and first LCC to serve the Southeast Asian market in Jun-2013, when it launched services to Bangkok from Oslo and Stockholm. Norwegian brings a return of long haul low-cost services to the Asia-Europe market…..

CAPA on LHLCC….Air Asia X

….. AirAsia X is now focusing on routes within the Asia-Pacific region and on  flights of less than nine hours, using A330-300s….

CAPA Profiles CAPA’s Indian Aviation Outlook for FY14:

http://centreforaviation.com/analysis/capas-indian-aviation-outlook-fy14-wanted-transparent-policy-framework-to-support-ambitious-plans-120881

CAPA in its annual aviation outlook series for 2013-14 on India has said that …

Private airlines are expecting profits of USD250-300+ million in FY2014 - while Air India loses USD750-800 million

the overall industry result is expected (to)remain in the red, dragged down by a projected USD750-800 million loss at Air India…

 Air India’s challenge is insurmountable, as billions of dollars are squandered, with no strategy…..

Air India has no future under continued government control which should bring privatisation back on to the agenda, with a possible decision on the divestment schedule in 2014 triggered by the impact of foreign airline investment transactions.

NOT A VERY HAPPY COMMENTARY ABOUT OUR AIR INDIA….HOPE MATTERS IMPROVE

..& this I just cant resist….I MUST share this…….!!!

An indoor airline game. In this wet weather outside it is an ideal setting for all Gaming enthusiasts and Airline buffs. It is a Real Brainer. Click on the link below, and watch your scores soar or kraaash….

CAUTION – Its Very Addictive !!!!

My Very Special Thanks to Dhanoo Khusrokhan for sharing this..

http://www.lufthansa-vp.com/vp1/play.html

 

Wishing you & your families a Lovely Weekend !!!

Our Credo….”Network & Be Informed “

( PLEASE VISIT OUR WEBSITE : http://chocks-on.blogspot.in/ )

 

Weekend Platter ! ( 20 JULY 2013 ) ISSUE – VI

Chocks-on….Weekend Platter ! (  20 JULY 2013 )    ISSUE – VI

….Shocking and Shameful !! A National Embarassment…

1.       IGI  Airport, New Delhi …..

Touted as India’s show piece, developed with a lot of fanfare & tamasha, charging a bomb from all users, this showpiece has crumbled….! The area is flooded with knee deep water….see to believe. Click the link : http://imgur.com/a/TXdFz#0

….What they said…….

2.       Shri Ajit Singh, Hon Minister of Civil Aviation -

…….If Air India gives good service to passengers from here to anywhere in the world, Indians will prefer them over others any day. But they have to compete…..

3.       Shri Rohit Nandan, CMD, Air India……at his confident best

..... I decided no more low fares. We must try to recover whatever cash costs we were incurring. My basic philosophy has been we must first build profitability, not market share…

4.       Shri Mittu Chandilya, CEO, Air Asia, India …..

… The non-airline background is an advantage.  I am a start-up and turnaround person - being disruptive is my strength……. several top executives in other Air Asia subsidiaries come from non-airline back ground. Tony’s idea has always been to bring in disruptive innovations….

5.       Mr Bernard Philip- High Commissioner of Australia

… We expect Indian visitor numbers to Australia to nearly double by 2020, so these direct flights will benefit many Indian business travellers, students, migrants, tourists and families,

6.       Shri Tony Fernandes, CEO, Air Asia……on his India Strategy…

....game plan is very simple. We want to have the lowest fares, we want to improve connectivity within India. We think there are a lot of routes that are just not done. If you look at air travel, it’s so concentrated on Delhi and Mumbai. There is a huge amount of airports that are under-utilised…..

7.       Shri Ajit Singh, Hon Minister of Civil Aviation…on the performance of Air India…..

…. I have reviewed international operations. All the flights which were losing money are now generating cash profit. The fuel costs of Boeing 787 Dreamliner are less. Plus travellers too like the aircraft because of comfort level…..

….Aviation News & Events….

8.       Now, Lufthansa considers an LCC targeting Asia….

Deutsche Lufthansa AG (LHA) said it’s looking at establishing a long-haul, low-cost venture to help sustain its market share on routes to Asia as rival operators syphon more and more traffic through hubs in the Gulf……

9.       B-787 investigation …..

British investigators have traced the fire aboard a Boeing 787 at Heathrow International Airport to an emergency transmitter powered by lithium batteries….Boeing said ‘’We are confident the 787 is safe, and we stand behind its overall integrity,"

10.   Jet Airways Slow & Steady Predatory Strategy……

….Jet Airways, which has a code share with Qantas for Sydney, Melbourne, Perth & Brisbane increases one more flight from Chennai to Singapore. From Singapore, Qantas will ferry the passengers to the various gateways in Australia…A good pre-empt indeed..!!!

….At the same time Jet Airways, India�s premier international airline, has entered into a reciprocal frequent flyer partnership with Air New Zealand…..to ensure Kiwi traffic continues to use its services …..

11.   Billionaire Singh brothers of Religare enter regional airlines biz with Air Mantra….

…..Malvinder and Shivinder Singh-promoted Religare Voyages, which has been operating private charter flights, is launching a regional airlines called Air Mantra. The latest entrant in a tough aviation market will take off on July 23….

12.   Child Free Flights…..

.... A survey this week suggested that unruly children remain the biggest in-flight annoyance for the majority of travellers…As for a solution,… nearly a third said they would pay more to sit in a child-free zone. A quarter would pay up to £50 per return flight for the privilege, and seven per cent said they would pay even more….

13.   Will Australia be a BOOM or a DOOM for Air India …..????

Read the critique on Air India’s Australia operations…’ India Australia Route - An Imminent Blood Bath.....’ at URL http://chocks-on.blogspot.in/2013/07/india-australia-route-imminent-blood.html

….& Bet !!! You don’t know this….

14.   Worlds Best In-flight  Amenity Bag Award…. Goes to

·         Etihad Airways - Best First Class Bag for males, with a cufflink-inspired black leather box with jewel-toned lining designed by Harley Smith, containing La Prairie skincare products.

·         Emirates Airline - Best First Class Bag for females with its Bulgari bag with Bulgari Eau Parfumee Au The Rouge cosmetic line.

·         Singapore Airlines - Best First Class Unisex bag containing  five large cosmetic products from skincare brand Kiehl's …

·         Virgin Australia's - Best Business class bag for females a Hans Hulsbosch bag made from nylon and microfiber materials in charcoal color, with Grown skincare products plus dental care, tissues and pen….

At the Travel Plus Airline Amenity Bag Awards, those airlines are honored who know how to pamper their customers with high-end products. ( AI please note…)

& Now a wee bit CRAZY but FUNNY info by Skyscanner …

World’s 10 rudest countries for travellers  :

1. France ; 2. Russia ; 3. United Kingdom ; 4. Germany ; 5. China ;

6. Hong Kong ; 7. United States ; 8. Spain ; 9. Italy ;10. Poland

 

The countries voted least rude :

1. Japan ; 2. Denmark ; 3. Canada ; 4. New Zealand ; 5. Indonesia

6. Portugal ; 7. Thailand ; 8. The Philippines ; 9. Caribbean region ;

10. Brazil

So watch out friends, when travelling to any of the countries above.

 

Wishing you & your families a Wonderful Weekend !!!

Our Credo….”Network & Be Informed “

  

India Australia Route - An Imminent Blood Bath.....

Jet Air to increase connectivity to Singapore   http://www.thehindubusinessline.com/industry-and-economy/logistics/jet-air-to-increase-connectivity-to-singapore/article4905578.ece

Air India goes back to Australia after a gap of 16 years.  Meanwhile, Qantas has been into and out of India often, finally stopping all services to India in May 2012.

Why this flip flop for operating to Australia. Because of Air India's past experience. Operations to Australia have never been profitable for Air India. Earlier, its traffic profile was largely 6th freedom, comprising predominantly of passengers travelling between Australia and Beirut, Malta, Rome, Cairo and to a small extent London.

However this time Air India embarks on this operation, with two positive premises. One, the Indian ethnic population in Australia ( incl. students) has almost quadrupled, from what it was 16 years ago, thereby ensuring a comparatively larger component of end to end India Australia traffic, and thus better yields. Second, a fuel efficient B-787 aircraft that will ensure a better cost economics of operation.

Despite these positives, this market is notoriously ' price sensitive ' and low yield. It comprises chiefly of  VFR (Visiting Friends & Relatives ) traffic and student traffic- both highly price conscious. The only way, if at all, to sustain this price factor, is to have a steady year round passenger load of above 85%.

For this Air India, had sought a code share with Qantas, for a deeper and wider penetration in the Australian hinterland ( refer Chocks-on issue IV of 06 July ), but Qantas turned it down on the plea that it already has a code with Jet-Airways, over Singapore to Sydney, Melbourne, Brisbane and Perth.

Now we understand that Jet Airways, w.e.f. 01 Aug., 2013 is launching a second daily flight to Singapore from Chennai. Jet Airways already operates 2 daily flights to Singapore from Delhi, one from Mumbai and now two from Chennai.

Secondly, India Australia traffic was the main bread and butter of Singapore Airlines, which commanded a lions share of the Australian traffic from the sub-continent to Australia. It is obvious Singapore Airlines will give a tough challenge to Air India to poach into its traditional turf. Singapore Airlines and its subsidiary Silk Air already have a wide footprint in India of 11 gateways and 98 direct weekly flights. Tiger Airways, which is 39% owned by SQ, operates 39 weekly flights from 6 Indian gateways. This wide combined network in India of Singapore Airlines and its subsidiaries, gives it a phenomenal strength to determine market swings. Like in India, Singapore Airlines has a formidable network and footprint in Australia as well. It will be a bitter battle for Air India to divert traffic from Singapore Airlines. Fare wars are a foregone conclusion.

Added to this is the LCC, Air Asia, which is currently operating from 5 Indian gateways to Kuala Lumpur. From Kuala Lumpur, Air Asia X operates a long haul daily LCC service to Queens land. According to CAPA ( Center for Asia Pacific Aviation ) Air Asia X will have more seats to Australia, than Malaysian Airlines- it plans to increase seat capacity by more than 40%, from the existing 26,400 to 37,000 per week. Once Air Asia India commences operations, one can well imagine the fare war unleashed on the India Australia route.

The above are just some of the broad contours of the competition Air India will face on the India Australia run.

Will history again repeat itself for Air India ? Only time will tell.

Our Credo….”Network& Be Informed “

 

Nuggets - Midweek 16 July, 2013

Chocks-on….Nuggets…!     ( 16 July, 2013 )

..on AI’s B-787’s…..

Shri Rohit Nandan, CMD, Air India – On B-787’s in Air India

……says there are no plans to roll back the expansion with B-787  ‘at the moment’…..!! “We are following all precautions,” 

Shri Arun Mishra, Director General of Civil Aviation

…. The Heathrow fire was not due to a battery malfunction… can take any action only after an investigation report is made available…..

 Senior Air India Official

…There are still minor glitches that occur every day. It’s just that they don’t result in flight cancellations…

Senior Air India Executive

……Air India should not go all out on expansion given the current mood,…. “hold the deliveries till the time all issues are not sorted out and teething problems resolved,…..Till then expansion should be curtailed. And Boeing should take steps to instill passenger confidence and be asked to pay for the loss of passenger confidence.”……

For complete article…. ‘Air India not to roll back Boeing 787 expansion for now…’, on Mint, please visit http://www.livemint.com/Companies/NXFOl6L0mZ3FigJAjmsOjJ/Air-India-not-to-roll-back-Boeing-787-expansion-for-now.html

Airlines Continue to fly Dreamliner …

…Boeing and the 13 airlines that fly the 787 are not parking their planes while investigators in Britain search for the cause of the fire….. Boeing and its customers are taking a cautious wait-and-see approach…. The answer is that Boeing and its customers have not seen enough evidence to suggest this type of fire could happen on other Dreamliners     ( CNBC .com )  http://www.cnbc.com/id/100886599

SO AIR INDIANS BE REST ASSURED, YOUR 787’s ARE RECEIVING THE HIGHEST ATTENTION….!

 

Our Credo….”Network & Be Informed “

( PLEASE VISIT OUR WEBSITE : http://chocks-on.blogspot.in/ )  

The Week That Was ! ( 13 JULY 2013 ) ISSUE - V

….A Horrific Cataclysm…….Averted !!!!

HATS-OFF TO THE BOEING AIRPLANE COMPANY !!!

WITH YEARS OF METICULOUS PLANNING, R & D AND USAGE OF MODERN TECHNOLOGY, AIR ACCIDENTS TODAY ARE MORE SURVIVABLE….THIS  AVERTED A HORRIFIC CATACLYSM OF DEATH & DESTRUCTION…...

1.       Reasons Why So Many Survived the Asiana Accident……High Technology…..

·         Seats of B-777 designed to withstand extreme force up to 16 times the pull of gravity,…..

·         Connections between the floor and seats have been strengthened so that seats do not come loose in a crash….

·         Use of fire retardant plastics, fabrics and internal material to retard flames….

·         Use of materials that do not produce toxic fumes, high heat  release, and low density of smoke etc…. ‘.smoke is more deadly than flames….’

·         Quick evacuation of the plane…..within 90 seconds ideally…..

·         The normal and emergency exit doors… made to operate more easily so that they …. spring out of the way to allow a faster escape / exit….

2.       ….& Oops !! There is a ‘ Contrarian ‘ view  too…

Was High Technology responsible for the accident  ????

The accident has renewed debate among experts about the complexity of modern aircraft and whether it is outpacing the ability of pilots to know what is going on at all times….The  NTSB , based on the statement of Asiana captain believed a system that would control the aircraft's power and speed as it descended was on and realized too late that the system -- called an’ auto-throttle’ -- was not maintaining speed…..

3.       Automation Complacency ……………..

…modern aircrafts like the 777 are so capable of flying themselves that pilots come to over-rely on their automated systems.You trust it. Experts call this "automation complacency…”

4.       Is B-787….Boeing’s Achilles heel….????

Again two incidents of B-787 on Friday, raise concerns on the aircrafts safety. Another fire incident in Ethiopians B-787 at Heathrow, London…..! Thomson Airways flight returns back to Manchester due to technical reasons…!.United has been bedeviled by "several" flight cancellations due to a variety of issues involving the aircraft…..

5.       Mr Harro Ranter, President, A.S.N., ( Air Safety Network )……..

…“The safety record for 2013 is extremely good,” …With only six months to go, 2013 is shaping up to be one of the safest years in aviation…YTD aircraft fatalities stand at 62, down 85 per cent from the 10-year average of 357……( Very Promising…..).

…so, what all happened in the Indian Skies……

6.       The Mother-of-all-News…. Naresh Goyal part of panel formed to boost ties with UAE….

..Naresh Goyal, surprisingly,(is) in a new committee formed by the MoCA to boost ties with the UAE…Other members of the Committee are K.N.Srivastava; Prabhat Kumar & Rohit Nandan…

7.       DGCA to be replaced by CAA……

The GoI has given in principle approval to replace DGCA with an autonomous, financially independent regulator, the CAA, outside the purview of the Civil Aviation Ministry. It will meet  standards set by the UN's ICAO and is in line with the FAA of the US & the CAA of UK.

8.       Shri Ajit Singh- Hon Minister of Civil Aviation….

…Air India has to consider setting up a hub in Chennai or Bangalore. It can have its main hub in Delhi…. According to ministry’s concept paper… only 10-12 % of traffic at Mumbai and Delhi is transit..compared to Dubai and Doha, where it is 44 per cent and 61 per cent.. (Excellent decision, but revive & develop Mumbai also as a hub. On the home turf AI must  strengthen its hold, and increase catchment areas. It needs minimum 3 hubs in India…..)

9.       Shri Rohit Nandan, CMD, Air India……

…. “Some are just empty shells standing,” ..scavenged for spare parts, said the CMD about the parked aircraft. Amongst the 16 grounded planes some are leased which AI hasn’t returned to their owners, because it can’t afford to refurbish them….

10.   Ms Amisha Sethi – Appointed New CCO of Air Asia India….

A veteran marketing professional, … an executive scholar in marketing and sales management from Kellogg School of Management of the Northwestern University, US and an MBA in marketing from Amity Business School. Ms Sethi has been featured as the top 50 most talented brand builders. She spearheaded brand marketing for Asia Pacific region at BlackBerry.. and worked for India's biggest telecom operator; Airtel  ( Congratulations Ms Sethi and Wishing you all the best….)

11.   Mr Mittu Chandilya, CEO, Air Asia India….on appointment of Ms Amisha….

….I am thrilled to have someone of her experience and energy to join us and realise our vision to revolutionise the aviation industry in the country…..

12.   Shri Tony Fernandes, CEO, Air Asia…flies back home after a 5 day whirlwind tour of India…

..Yes..He came, He saw, He conquered!!! That is how his recent visit was. Tied up all the loose ends here…and left many guessing. The most startling revelation was.. that AirAsia would be able to make money even at mere 57-58 % occupancy, compared to 80% of Indian LCC’s..! But all are not convinced…particularly Indigo….

13.   Will Air Asia be the nemesis of Air India’s Australia operations……..

..Maybe..! Come Nov24 Air Asia X, plans to increase its schedule to a daily flight to Queensland from Kuala Lumpur,i.e.,an addition of 60,000 seats annually. Air Asia already has online operations into S.I.points from Kuala Lumpur……Interesting days ahead see…..

14.   …& now it is Hyderabad International Airport (RGIA) proposing 100% hike in Landing fees..

…High Costs at Indian airports dogs airlines..!! After  Mumbai & Delhi,now it is Hyderabad.. Mr Malvyn Tan, IATA said that as margin for all airlines is under pressure, 100 per cent increase in international landing fee will have impact on operations….

15.    Why matters in Air India come unstuck…..?????   the bridge loan……

Air India on June 26 had invited bids for a bridge loan of USD 500 million, with July5 as the deadline  to pay for five Boeing 787s….but with lenders not showing much interest the date was extended to July12…!! According to the grapevine… This bridge loan…is not being covered by a government guarantee……..

16.   ..& another one..No takers for rental of AI building at Nariman Point……

…apparently the area on offer was too large….and the prospective clients have found  better options available in the suburbs. The airline is intending to lease out 15 floors of approx.10,000 sq. ft. each since the last one year. Now smaller areas will be offered…..

…& what all happened Overseas……

17.   A US$ 165 million revamp of Singapore Airlines Cabin Products…….

Famous for its world class service, Singapore Airlines revamps its cabin with a US$ 165 million next generation makeover, particularly in its First & Business Class. This is part of more than 2 year working with world class designers. Mr MS Wah, Executive VP said …” it demonstrates our confidence in the future for premium full-service air travel,"

18.   Now an ULTRA Low Cost Airline……

…& now it is none other but Thai Airways that plans to launch an ULTRA low cost airline sometime next year….(LCC’s watch out….)

19.   Etihad Airways, record revenue performance in H1 & H2-2013…….

the national airline of the UAE, reported an eight per cent year-on-year increase in passenger revenues to $921 million in the second quarter ending June 30, 2013. The airline termed it as the “strongest second quarter and half-year financial performances on record”, reflecting  “solid growth in its airline alliance strategy..20% of revenue came from partnerships….

Vow !! Do you know that………

20.   Every day, approx. 20,000 commercial flights are operated all over the world…!

21.   World’s  Top 10- most On-Time Airlines -  South African - 92.26%; Gulf Air-92.1%; Singapore Airlines-89.9%; KLM-88.9%; Finnair-88.6%; JAL-88.5% ;Air New Zealand-87.9%; EasyJet-87.6%; ANA-87.2%; Korean Air Lines- 86.3%. ( No Emirates or Etihad or Qatar ???? )

..& a slice of Wisdom…….  ERNEST HEMINGWAY

There is nothing noble in being superior to your fellow man,

True nobility is being superior to your former self…..!!!

 

Here is Wishing you a Wonderful Weekend !!!

Air India- You Need Course Correction

Hon Minister, Sir, your recent directive to the Air India management ‘to develop a hub in South India to target passenger traffic from the region’ (Business Standard, July 8,2013), is a most welcome  decision.

Air India, needs to strengthen and consolidate its position on its home turf. It is this traffic that is its bread and butter, unlike the 5^th and 6^th freedom foreign carriers, who depend on this transit traffic to earn their revenues. Competition is only going to become more and more intense in the days to come and unless Air India takes proactive steps, it might be challenging to retain its market share. Air India’s USP is, it still enjoys a strong brand loyalty amongst the Indian travellers worldwide. It is this loyalty that needs to be harnessed,  and translated into revenues.

In other words a slight course correction can yield substantial dividends. Your directive is an excellent step in this process of course correction. India is not a country, but a continent. Creating a single hub in Delhi, in such a large country has its limitations. Passengers from the southern region are averse to travelling all the way to Delhi to connect Air India’s international flights, particularly when they have a choice of a foreign carrier available right at their doorstep. 

Prior to the creation of a hub in Delhi in 2009, Air India had two very active and robust hubs in Mumbai and Delhi, catering to almost all the international destinations in Europe, UK, USA, the Far East and the Gulf countries. Mumbai and New Delhi acted as major catchment areas for passengers from all across India.  Meanwhile a parallel process of opening new international airports across India was gaining steam day by day. Foreign carriers were quick to move into these new airports, providing direct flights to overseas destinations. This started making a dent on Air India’s passenger uplifts ex Mumbai and ex Delhi.

Air India should have reacted by also operating direct flights from these newly opened gateways. But, instead of expanding into these newly opened gateways, it started shrinking and got confined only to Delhi, even withdrawing from its existing hub in Mumbai. Air India should have examined the possibility of creating a hub in Southern India, consolidating its existing hub of Mumbai, and creating a new hub in New Delhi.  This would have ensured a hub and spoke map of India, where any regional city was only 1 ½ hour away from AI’s international hub. Passengers from the entire southern belt of Kerala, Karnataka, Andhra Pradesh and even Sri Lanka, Lakshadweep would have preferred to connect over Madras or Bangalore hub.  Similarly, a Mumbai hub would have been the main catchment area for passengers originating in Goa, Gujarat, Madhya Pradesh, Maharashtra and to some extent upper Karnataka.  Likewise, the Delhi hub would have continued to be the catchment area for entire Northern India and Eastern India. The marginalisation of Mumbai , which had always been the prime Indian international gateway was a major retrograde step.

We all welcome this step by the government.  While opening a hub in S.India is a must, we must reinstate Mumbai as a hub in the Western Region, particularly with the proposed commissioning of the new International Airport next year in Mumbai. India needs four hubs, but even if three vibrant hubs are created it will go a long way in capturing the lost ground and traffic, incident upon shifting to Delhi.

What is required is a careful and a calibrated approach based on the traffic profile of the countries from where passengers originate. For example, New Delhi is predominantly a tourist market, besides being an ethnic market of visiting friends and relatives, and  students.  Flights from the main tourist originating countries like Japan, Europe, may originate and terminate in New Delhi.  Similarly UK, USA, Canada,-Middle East Australia are predominantly ethnic markets ,and therefore flights from these countries should operate into all the hubs of India.  After consolidating and entrenching itself in the Indian market, Air India should then focus on the overseas market.

Unfortunately Air India has not only lost the battle in its own home turf, but also in the markets overseas .  The existing hub and spoke operations to and from Delhi have failed.  Foreign carriers by making deep inroads in the local / regional markets of India have siphoned away Air India’s legitimate traffic .

Without sounding pompous, marketing is developing and selling a product that the market wants, rather than selling a product that the company wants. Air India, regrettably is in the latter category. This mismatch between what the market wants and what Air India wants has to be corrected, if Air India wants to combat competition successfully