Air India And Communication Crisis

Presented By: SEC B, Gr-7 Rahul Agarwal -085 Rahul Jain -088 Rahul Bhardwaj-086 Raj Kumar Singh-089 Rahul Jain -087 Nitya Upadhaya -137

Establishment

• Tata AirlinesFounder J.R.D Tata15 October 19323 Seater De Havilland Puss MothFirst Pilot - Nevill VintcentFirst Flight

Karachi Ahmedabad Mumbai

National Flag Carrier

▪ Birth of Air India 29 July 1946 1948 49%-Govt. of India Extra 2% Flag Carrier Status – ‘Air India International’ First International Flight

8 June 1948 Lockheed Constellation L-749A ‘Malabar Princess’ Bombay Cairo Geneva London.

▪ Air Corporations Act 1953, 1st August Majority stake of Govt. of India Domestic Services – Indian Airlines International Services – Air India International Limited

Earlier Liveries

▪ Indian Airlines ▪ Air India

New Air India Livery

• Unveiled in May 2007

• The Flying Swan Air India’s logo ‘The Centaur’.

• Konark Chakra - Indian Airlines logo

Air India Major Hubs

▪ Chhatrapati Shivaji International Airport (Primary Hub)

▪ Indira Gandhi International Airport (Secondary Hub)

▪ Frankfurt Airport (International Hub)

Affiliated Carriers

▪ Indian Airlines has a fleet of 74 aircraft (18 Airbus A319-100s, 43 Airbus A320-200s and 13 Airbus A321-200s) with seventeen additional aircraft on order.

▪ Air India Express has a fleet of 23 Boeing 737-800s aircraft with two additional aircraft on order.

▪ Air India Regional has a fleet of 11 aircraft (7 ATR 42-320s and 4 Bombardier CRJ-700ERs).

▪ Air India Cargo has a fleet of 10 aircraft (4 Airbus A310-300(F)s and 6 Boeing 737-200/Adv(F)s).

Awards and Recognitions

▪ Best International West Bound Airline out of India for three successive years by Galileo Express Travel World Award.

▪ Best Corporate Social Responsibility Initiative. by Galileo Express Travel World Award.

▪ World's First All-Jet Airline- June 1962

▪ World's Largest Operator of Airbus A310-300.

▪ Entered The Guinness Book of World Records for the largest evacuation by a civil airliner. 111,000 people (Indian expatriates in Kuwait and Iraq) Amman to Mumbai – a distance of 4,117 km 488 flights with IA 13 August to 11 October, 1990 – lasting 59 days.

SWOT ANALYSIS

STRENGTHS

▪ Has wide International presence in around 19 different countries.

▪ Financial support of the government of India.

▪ Well know in both domestic as well as international sector.

▪ Up to date information system

▪ Equipped with New fleet of aircrafts.

WEAKNESSES

▪ Low profitability

▪ Presence of tough competition both in the domestic as well as international segment.

▪ Entry of Low cost carriers in the domestic segment.

▪ Communication loopholes

▪ Financial issues causing delay in payments to employees.

OPPORTUNITIES

▪ Plugging the communication loopholes can help enhance its image and customer base.

▪ Expansion of routes and international destinations.

▪ Can leverage on brand new fleets.

THREATS

▪ Rising labor costs

▪ Rising fuel costs.

▪ Losing market share due to other carriers.

▪ Labor Issues

LOOPHOLES IN COMMUNICATION

Helpdesk problems

▪ It provides a single point of contact for customers to receive help on various issues.

▪ Problems with the help desk software .

▪ IT processes lack structure.

▪ The responses are late and thus leads to poor customer support.

▪ Phone lines are mostly busy.

Helpdesk problems(contd.)

▪ Lack of alternate communication channel.(email, web, phone, etc)

▪ Long waiting time at customer care centers.

▪ Staff behavior

▪ Lack of accuracy and precision in solution to certain problems

Delay and cancellation notifications

▪ Frequent cancellation of flights due to internal reasons.

▪ No prior communication regarding delay and cancellation of flights.

▪ Customers often informed about cancellation of flights after reaching the airport.

CONTD..

▪ Notifications made only through a single channel.

▪ Unjustified cancellation with no clear reasons behind them.

▪ Lack of alternative arrangements.

▪ Inefficient communication between the ATC and the Air India pilots leading to no prior information about possible delays and cancellations.

Lack In Transparent Communication Regarding Refund Policies

▪ Air India has been accused of not adopting a uniform mode of communication when it comes to dealing with refund policies.

▪ In some incidents, passengers have had serious difficulties in tackling with these refund issues.

Unreliable Information Resources

▪ Various cases of mismanagement came into picture due to this problem.

▪ The final message to the customer conveyed inappropriately and incorrectly at numerous occasions.

An Example Of The Problem

▪ Air India postponed the 8:45 AM HYD-MUM flight to 4:15 PM.

▪ Say there were 20 bookings on this flight and they called up all these 20 people and promised a confirmed ticket in 8:15 AM flight.

▪ Having no reason to sense any foul play, the passengers arrived at the airport to board the flight.

▪ Actual the number of seats available on 8:15 AM flight were far less than that promised to them.

▪ The staff told them that he has one ticket left with him, the passenger having the most urgency can come forward and take the ticket

Recommendations

Recommendations

▪ Well trained and informed staff.

▪ Increase in staff size and communication devices .

▪ Improved transparent communication process.

Recommendations(contd.)

▪ 100% refund.

▪ Credible information sources.

▪ Employee satisfaction.

▪ Improved internal communication

CONCLUSION

Conclusion

Air India must improve the inter and intra communication.

Winning customer’s trust can help Air India come out of the current financial crisis.

Organization must be well equipped in terms: staff, devices and information.

Thank

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