Air India Losing Business
By Arnab Ghosh, Gaea News NetworkSaturday, April 17, 2010
NEW DELHI, INDIA (GaeaTimes.com)- Air India, India’s national airline is incurring heavy losses and losing market to private operators as a latest survey has shown. This is happening despite its merger with Indian airlines and a revamp in its board of directors. The civil aviation minster has said that the airline has cut down on its losses to an extent. It is not clear when the airline can overcome the dark phase. The aviation market statistics paint a grim picture. Both Kingfisher and Jet which came into existence only a few years back are giving Air India a run for its money.
Both the airlines are becoming dominating players in the domestic aviation market in India with the years. They cover 49 % of domestic air traffic where as Air India staggers behind with a share of only 18 percent. Even budget airlines like SpiceJet and Indigo jointly share 27% of the domestic market. They are also chalking up plans to make foray into global territories. It will only worsen the case for Air India, if they do so. Air India struggles to fill 64 % of its seats while Indigo succeeds in filling 74 % of its seats per flight on an average.
While Air India is facing serious completion from Indigo and SpiceJet in the low cost market, Kingfisher and Jet are wooing away the business class fliers from Air India gradually. They also have better customer service reputation compared to Air India. If the new board of directors does not make changes in its operating policy, the future may turn bleak for the national carrier.
