Crusading AI towards expansion
With a slew of new international and domestic routes to be launched, Air India is leaving behind its legacy of losses, and paving a new way to success, reveals its Chairman & MD Ashwani Lohani.
Air India is on its way out of losses and loans that it incurred due to many issues, one of which is the merger of Air India and Indian Airlines, the erstwhile domestic national carrier. Spearheading this crusade to revive the airline, Lohani says, “We have decided to restore the national carrier and we are doing it. A merger creates a lot of issues, which could be relating to seniority, salary or status. We have a major gap between the operating performance and net performance. We have a big loan on our head. As a first, we are settling the problems. Some have been extremely difficult. We have decided to consolidate the existing operations and use existing planes to fly more and fill more. After that is done, we will expand.” After Air India made operational profits last year, Lohani is already taking steps, both big and small, towards expansion.
“Only when we expand, the losses will reduce. Any organisation which doesn’t grow ultimately stagnates and sinks. We don’t want that. From December 2015 till December 2016, we would have introduced four brand new international flights. Firstly, we started the Delhi-San Francisco flight in December last year, and decided that if it does well, we will make it a daily connection instead of the current three days a week. The second connection was Delhi-Vienna, which was launched in April. From August 15 this year, we started the AhmedabadLondon-Newark route, which was a long pending demand of Gujarat and was finally met. In December 2016 or by first week of January 2017, we are going to start Delhi-Madrid.”
He further adds, “In the next summer schedule, we are looking at connecting Chandigarh with Singapore and Bangkok. Then we will be connecting Delhi with Washington, as well as start DelhiNairobi or Delhi-Copenhagen. Internationally, we are not letting any place uncovered.” Air India is going to play a crucial role in the Regional Connectivity Scheme (RCS) under the National Civil Aviation Policy (NCAP), launched this year. “We have a very progressive policy on hand. As far as domestic operations are concerned, we are doing a lot. Beginning January we are adding 2.5 planes every month, which would include big A-320s and small planes. This addition will be continuous. For the RCS, we have a small arm called Alliance Air with around 10 planes, which would fly to Tier I and Tier II cities. We will be expanding that arm to about 40 aircraft in the next two years to connect Tier I-Tier II cities; Tier I-Tier III cities as well as Tier II-Tier III cities,” informs Lohani. He also says that they want to expand in south Indian cities as well. “We would like to get smaller planes to fly from Mangalore to Puducherry or Chennai to Madurai. We want to connect Tier II cities because that’s where the need is.”
He reveals that they are working closely with the Ministry of Tourism to start new routes. “Civil aviation and tourism go hand in hand. We take suggestions from travel trade as well as state governments. Our offices also take their suggestions, which are then taken by MOT’s regional offices. On the basis of all the recommendations, we take a decision on which flights to start,” he says.
In terms of service as well, Air India is the first airline to allow 25kg baggage on domestic routes, offers food, extra leg room and wider seats. “We are focussing on setting the airline right. We have to run the airline well and that is what we are trying to do right now.”
In the next summer schedule, we are looking at connecting Chandigarh with we will be connecting Delhi with Washington, as well as start Delhi-Nairobi or Delhi-Copenhagen. Internationally, we are not letting any place uncovered. Ashwani Lohani Chairman & MD, Air India