Game over, Air India

Thursday, 13 Aug, 2009 0

By Shashank Nigam, airline branding and marketing expert, blogger, author, serial entrepreneur

I’m not suggesting Emirates should become the national carrier of India.

I’m asserting that it is already the de-facto national airline of the sub-continent.

And Indians need to tell their politicians to get over the rescue-Air-India-at-any-cost fever, save some tax rupees and let the market decide which airline survives and which doesn’t.

Air India contributes 10 percent of global airline losses with just 0.35 percent of global traffic (stat. from Bangalore Aviation).

To rescue the airline, hundreds of millions of taxpayers’ rupees are required over a long period of time. And even then, a profitable airline cannot be guaranteed, especially one that is mostly run for, and by the government and bureaucrats.

Even if you can gloss over the fact that lots of money is required to rescue Air India, the ideas for the turnaround that have been proposed till now have been far from convincing.

Repositioning Air India as a low-cost carrier, with sky-high employee-to-plane ratio, aging fleet, poor plane utilisation and lethargic execution, is at best an ill-conceived dream.

To date, Air India has filled its planes either with politicians, or by selling dirt-cheap tickets that hardly cover the costs of flying. And these are both unsustainable practices.

And with the uphill battle to rescue the airline, I suggest Indians let go and move on.

Emirates not only operates many times the frequency to all of Air India’s international destinations, it offers way better service and is already the leading international airline out of India from a number of major cities, ahead of Singapore Airlines, Lufthansa and KLM.

Imagine what will happen once Emirates starts flying its high-capacity A380s to Indian routes, connecting seamlessly to all over Europe and North America in the next few years.

No other airline, even if they’re part of alliances, would come close to beating Emirates in terms of capacity to India. Hence, I rest my case that Emirates is serving the purpose of a national carrier to India.

Indians should realise that by forcing Air India to stay alive, they’re not helping anyone.

Good money is chasing bad money. The politicians are still making merry and the service standards still remain hopeless compared to the competition.

Source: www.simpliflying.com



 

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Ian Jarrett



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