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Air India needs to revamped to Budget Airlines

Posted by on 06 July 2009

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Air India needs to revamped to Budget Airlines

Whenever one has to revamp an organisation to get rid of the austerity, inefficiency and red tapism one has to carefully plan taking into consideration all the pros and cons. My trainer in HPL used to always utter sharpen your axe before you go to fetch a wooden branch, and no wonder the title of the post is akin to Sharpening one's pencil before entering the examination hall. The lesson learnt professionally through SWOT analysis enabled to me to build a strong brand, and tailor made strategies to ensure that brand equity is enhanced, to an extent that All the Pencils and sharpners sold were against 100% DD.

What a paradox with Railways chugging ahead on fast track with surplus of 14000 crores and Air India with a huge accumulated losses of nearly 5000 crores. The lessons to be Indian railway success needs to be emulated by Air India's management. The focus needs to be on aam aadmi, get rid of all the frills and fancies.

Air India needs to focus on aam aadmi and aim all their strategies towards garnering volume of passengers, which will take care of the excess manpower deployed. The need to have budgetary hotels set up in the Air India precints needs to be explored. The practise of uniforms may have to discarded for all the crew members and staff except the pilots. An Air India batch will help in identifying an employee. This will ensure massive savings.

Further travel agents needs to eliminated for Air India, even if they are necessitiated a minimum commission of 2% can be passed on full payment. Focus on online ticketing and counter ticketing by Air India offices would ensure that massive cost savings can be ensured. Food from star hotel kitchen chain has not ensured customer satisfaction, it is better to tie up with reputed city restaurants to meet the needs of passenger amenties.

Strikes by Air India employees should be made anti national, in lieu of the survival tactics. All Member of the Parliaments and govt officials should be compulsorily made to use Air India. It would ensure the employees will on their toes constantly. All private airline travel by govt. employee should not be reimbursed unless cancellation of flight takes place. Anyways Air India has back arrangement with Jet in case of cancellation.

Air India seems to be missing the biggest segment of tourism industry, by outsourcing hotel bookings to private agencies. This potential if exploited Air India will be running 90% occupancy rather than the current 45% occupancy. The trick is to provide budgetary destination and backpacker package. Just imagine providing package tours on pick up from the airport and drop back to the airport in a mini bus or innova, along with sightseeing. Rope in as many as travel agents to book their package and pass on the commissions for their own package. Instead of depending on the travel agent to make arrangements, air india should take on the onus of negotiating and booking hotels and travel cars. This will ensure that everybody is after AIR INDIA for business, rather than AIR INDIA depending on travel agents for bookings. The cost savings can be tremendous. Air India can pass on TAC to the travel agents, and their employees can be fully employed. I wont be surprised the people who are complaining that they have excess employees will complain that they are running short of staff to maintain the business. If you see Population as a liability than all our strategies fail, the more the merrier should be focus for any marketing person. Meeting targets will become archiac. A missionary approach will solve the problem, let them look into Indian railways who have tied up with 5000 post offices for their ticket booking what prevents AIR INDIA is my ? Air India employees need to prepare for their agnipariksha and sharpen their pencils together to get out of the whirpool of losses. Otherwise it will sad day witness the downfall of the Maharaja.

ack : picture courtsey Gizmo central
Disclaimer : the authors intention is to wake up the gaint of an organisation to work as a team and come out of the crisis triumphantly.


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Comments (1)


cosmicbomber wrote on 06 July, 2009

What an apt graphic!!!


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About this Blogger

about blogger Basically I am a marketing man, with 25 years work experience across FMCG, Durable and Construction Industry. I love travelling, photography, blogging and exchanging idea... Read more

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