Air India – A Case Study
ES Group 3:
Anurag Aran
Aranya Deb
Argha Ray
Sandeep Arora
A brief History
Tata Airlines founded by JRD Tata in 1932
Tata Airlines nationalized as Air India International in 1946
Indian Airlines commences operations in 1953 for domestic routes
Air India enters Jet Age in 1960 with Boeing 707
Low cost airline Air India Express launched in 2005
Financial distress from 2005
Air India and Indian Airlines merged in 2007
Crisis in 2009
Escalating costs, particularly of ATF (Aviation Turbine Fuel).
Fewer passengers, particularly in the premium class.
Low fares with a gradual shift of passengers from traditional full service airlines to low cost airlines.
Decline in carriage of cargo.
Excess capacity in a ‘falling’ market.
Turnaround Plan (TAP)
Focus on execution, accountability, cost reduction and revenue generation.
Adopt international best practices in airline operation.
FY10 – Focus on “Survival”
FY11 –Business restructuring
FY12 – Focus on Healthy operating margins & deliver the ‘future’ Air India
Project Sangam
Phases
Benefits
Milestones
Project Preparation – Phase of an SAP project where you form the teams and plan for the project.
Blueprint Phase – Phase in which processes, organization structure and data elements are defined.
Realization Phase – Phase in which the processes are configured in the SAP solution
Final Preparation – Phase in which the User Acceptance Testing, End User Training and final data load in the new system takes place
Go-Live – Phase in which the system is rolled-out in the organization and support is provided
Techno Functional Architecture
Implementation Issues
Change in top management
Delays
Lack of Coordination
Implementation Approach
Data Issues
Key Learnings from ERP Implementation
BOB provides the best fit in terms of functionality but integrated ERP implementation is better in terms of handling project management, cost and resource requirement, simplicity of implementation.
Top management support is must for taking ERP implementation initiatives.
Project management and coordination needs to be strengthened before going for BOB implementation.
Change management needs to be handled carefully and objective and benefits of the project should be clearly stated.
Key Learnings from ERP Implementation
Data redundancy issues can come up in a best of breed solution.
A best of breed solution can increase costs for supporting technology acquisition and maintenance costs.
Usability and the ability to collaborate are often diminished with a collection of best of breed.