Case Study Of Air India

853 Words2 Pages
bulb-icon

Recommended: Importance of business plans in an organisation

Introduction
According to the famous French management scholar, Henry Fayol, there are primarily four imperative functions in an organization namely planning, organizing, leading and controlling. All these functions are imperative for the successful management of an organization which enables it to realise its objectives and operate in the interest of shareholders. In the light of the discussion, this paper focuses on the above aspects with respect to Air India and discusses how the failure in the above functions led to the current crisis at the organization.
Planning
It is imperative that an organization needs to plan for the future in wake of the potential developments and also the current operations of the company. In the case of Air India, the problem started with its ill planned and ill timed merger of Air India and Indian Airlines to form NACIL (National Aviation Company of India Limited) with lot of post merger issues which were not considered before especially with respect to human resource issues which led to an overcapacity due to which the operations costs enhanced and the profitability declined due to which losses became ten folds (Rajesh, 2008). Additionally even when the company has been bleeding and surviving on government support, Air India is planning expansion of fleet and has placed orders for acquisition of Dreamliners to strengthen its international business (Shukla, 2014). Besides this, the company still continues to operate on a number of routes which are not profitable which is adding to the fiscal woes.
Organizing
It is very imperative for an organization to be aware of its strengths and weaknesses and operate according to the same. However NACIL does not operate as per its strengths and weaknesses and in...

... middle of paper ...

...Oman Tribune: http://www.omantribune.com/index.php?page=columnist_details&column_id=622
Rajesh, Y. (2008, July 1). NACIL proposes cost-cutting measures, employees’ union ready to shoot it down. Retrieved April 12, 2014, from The Indian Express: http://archive.indianexpress.com/news/nacil-proposes-costcutting-measures-employees--union-ready-to-shoot-it-down/329407/
Shukla, T. (2014, March 12). Air India to speed up expansion, add eight Dreamliners in 2014. Retrieved April 10, 2014, from The Livemint: http://www.livemint.com/Companies/pTmPh3iN9UbrJpU3EMc5jO/Air-India-reviews-Boeing-Dreamliners-no-plan-to-ground-flee.html
Upadhyay, A. (2013, February 14). Jet Airways-Etihad deal to threaten Air India's survival. Retrieved April 12, 2014, from The Economic Times: http://articles.economictimes.indiatimes.com/2013-02-14/news/37100363_1_jet-etihad-gulf-carriers-capa-report

Show More
Related

  • Pros And Cons Of An Airline Case Study

    778 Words  | 2 Pages

    The pros of an airline implementing a policy that bigger customers need to buy a second seat is that the weight capacity regulations will be followed to. As well as the cons of an airline implementing a policy that larger customers need to buy a second seat would result in a bigger people who travelling will not uses that airlines anymore, airlines would be glowered on by family or relatives of larger customers, airline’s policies could be vigorously monitored for discriminatory actions against overweight persons. As mentioned in the book there are no federal laws prohibiting discrimination against obese individual, although there are some places such as Wisconsin, DC, and California provide legal protection. (Harvey & Allard , 2012, p. 234)

    Read More

  • Case Study: Qantas

    1629 Words  | 4 Pages

    Is change going to keep Qantas in the air, or force them to the ground?

    Read More

  • Acme Airlines Case Study

    1099 Words  | 3 Pages

    “Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard’s, a 20th century physicist, words show us the power of being proactive, and igniting change to strengthen a company’s productive climate (Sellers, Boone, Harper, 2011). Acme Airlines flight attendants lacked incentive to improve the quality of their work, as a result of distrustful management and overall frustration within the company. Acme took successful steps to rebuild their FA program into a more relationship oriented work environment. Through an understanding of effective leadership, we will use the

    Read More

  • Airborne Express

    1137 Words  | 3 Pages

    To identify the issues and problems that the company is facing and how the company incorporates into its business strategy the major trends that concerns air delivery business.

    Read More

  • Case Study Of Southwest Airlines

    739 Words  | 2 Pages

    The Southwest Airlines company and its culture is one that is often cited in today 's business classes. The airline is widely known to be “different” compared to many of its competitors, a result of its founding values and strong corporate culture. This culture developed early in Southwest’s history and was deeply entrenched due to the competitiveness of the airline industry, as well as due to some of the pressures experienced as a result regulatory issues and stiff competition.

    Read More

  • Air Canada Centre Case Study

    508 Words  | 2 Pages

    Air Canada Centre was essentially considered as a sporting stadium positioned in the southern part of Downtown District Toronto, Ontario in Canada. Since its completion, it has revolutionized a number of concerts due to its accessible ground floor as well as multiple restaurants in and out the play ground. Air Canada Centre has 665,000 square meters in size whereby its initial ownership was headed by Canadian businessperson John Bitove. In essence, John Bitove involved in several entities in Canada being the largest subscriber audio service as well as a new wireless service focused on major cities in Canada. Therefore, this stadium has hosted 36 million fans performing various activities and it has been over and over ranked the top locally

    Read More

  • International Joint Ventures (IJVs)

    2462 Words  | 5 Pages

    ...o, A. (2008), ‘Boeing , Tata Industries Announce India Joint Venture’, Industry Week. Available at: http://www.industryweek.com/articles/boeing_tata_industries_announce_india_joint_venture_15820.aspx
[Accessed 20 March 2011].

    Read More

  • IT Governance in Airline Industry Case Study

    1556 Words  | 4 Pages

    Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).

    Read More

  • The Jet Age: The Jet Age And The Airline Industry

    1036 Words  | 3 Pages

    Since the Jet Age, airlines have been entering and existing the airline industry. Some have been in business since the very beginning. For example, United airlines was founded almost twenty-five years before the jet age took off, and due to an incredible amount of money that the airline had by being one of the first airlines predating the Jet Age, was able to buy new jets and assert itself as one of THE giants of air travel by the late 1950’s. But the introduction of new technology paved the way for issues regarding externalities, and production of these new technologies. ("Assessing the external environment - Responding to a changing external business environment - United Airlines | United Airlines case studies and information | The Times 100", n.d., p. 1) The beginning of the Jet Age offered an intense opportunity for new firms to open or expand, producing new products from jet engines to structural parts, from radar technology, to reclining seats. According to research done by the Air Transportation Action Group, “It has been estimated the airline industry supports a grand total of 29 million jobs” (Hanlon, 2007, p. 1). This statistic proves how dependent the world is on the airline industry, for jobs and travel, as well as r...

    Read More

  • Business Analysis: Lufthansa Airline

    2483 Words  | 5 Pages

    Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...

    Read More

  • Essay On Pestle Analysis Of Air India

    1232 Words  | 3 Pages

    Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.

    Read More

  • Airasia Berhad: A Leading Low-Cost Airline

    1014 Words  | 3 Pages

    AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.

    Read More

  • American Airlines Business Analysis

    1567 Words  | 4 Pages

    1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines’ services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company’s background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.

    Read More

  • The Four Characteristics of Services Offered by Air Asia

    663 Words  | 2 Pages

    One of the characteristics of service offered by AirAsia is intangibility. Services intangibility is inevitable and sometimes could be a challenge for every service provider. According to Pride & Ferrell (2011) intangibility of services can be defined as the characteristic that the service is not physical and cannot be perceived by the senses. For instance like AirAsia which provides flight services, it is impossible for the customers to touch the flight as it is a journey to specific destinations. They might be able to touch the plane, but in the context of services, the customers do not own the physical tools or equipment used to deliver the service but are only entitled to get the service which is the flight service.

    Read More

  • PEST Analysis: The Indian Airline Industry

    1922 Words  | 4 Pages

    In India, one can never over-look the political factors which influence each and every industry existing in the country. Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the airline industry:

    Read More

More about Case Study Of Air India

Open Document