‘Air India will not oppose Qatar Airways’ plan to set up an airline in India... It is the govt’s call’
NEW DELHI: Air India chairman and MD Ashwani Lohani, 59, took over the reins of the national carrier in August 2015. Since Lohani took over, Air India has seen improved industrial relations and continued expansion. In an interview, Lohani comments on the airline’s priorities in 2017. Edited excerpts:
What is Air India’s focus area this year?
The key objective is expansion and consolidation. About 35 planes would come this year. Of these, six will be long-haul planes, which will go international with one return flight a day. We are participating aggressively in government’s regional connectivity scheme Udan. We have ordered 10 ATRs and we are ordering 10 more this year, so our ATR fleet would become 30 by end of 2017. In the next two years, we are looking to add 20-25 planes. Some more international connections are being planned —Washington, Scandinavian countries. Israel is under consideration. We are working to improve our services still further. We will improve our food further, staff should become more aggressive—in marketing, we have become very aggressive. And we want to keep on earning higher operating profits.
You have been very vocal on several issues including the airline’s massive debt burden?
We have to run the organisation openly. If you are working with honesty and commitment and not looking for a single illegal penny, then why should we not speak openly? I will. How do I compete with private carriers when our people are afraid of decision-making because of so many processes, while others can take decisions so quickly? The problems have to be accepted and brought in the public domain. The reasons have to be known — ₹50,000 crore debt and the fact that we are bound by a lot of rules and procedures.
There are things in the works to defuse debt issues?
We have to do financial restructuring. It’s a question of life and death. We will also have to inject fresh blood.
Even though there is no move towards Air India privatisation, do you have a view on it?
My job is to run the airline. Privatisation is subject to the government view.
Banks led by SBI seem to have said no to conversion of their debt to equity in Air India?
There is nothing like they have said no to it. We are still talking to banks to convert some of the debt into equity; some way has to be found out. Discussions are going on. We want it to closed at the earliest but it’s not something in our hands.
Does it worry you that while you’re the biggest international airline out of India with a 17% share, your domestic market share has been shrinking?
One thing I have to remember is that we are an international airline. That is our market. Domestic we went down because our capacity remained fixed, while others increased a lot. And the second reality is that while private airlines can place a 300400 plane order, we can’t do it. I will not be able to get it past the system. There would be bribery allegations. So, market share will fall; we won’t be able to stop unless I can also order planes, run it like an owner, which I am not. So, we have to brand Air India more and more as an international airline. And we have to tap the untapped tier-2 and tier-3 cities where there is little competition.
Does IndiGo’s 40% market share in the domestic market impact you, your pricing?
It’s not very good for passengers for somebody to have such a large market share. It will almost become monopolistic if it crosses 50%.
Qatar wants to set up an airline in India. What’s your stand? We don’t have any position. We are running our own airline. It’s for the government to decide, there is no airline role. But in the past, you have opposed such moves, even written to aviation ministry against giving any bilateral rights to Qatar?
The call has to be taken by the ministry. Air India has no locus standi in the matter. We will not oppose it, we will leave it to the government. In the end, what more can a consumer look forward from the airline this year? Good food, good cabin and Wi-Fi should start soon in domestic flights from around June this year.