Sunday, September 30, 2012
यूपीए और राजग संसदीय नौटंकी के बाद अमेरिकी हितों के लिए मजबूती से एकजुट!
यूपीए और राजग संसदीय नौटंकी के बाद अमेरिकी हितों के लिए मजबूती से एकजुट!
सरकार नहीं गिरेगी, इससे आश्वस्त डा. मनमोहन सिंह, उनकी सरकार और कारपोरेट अर्थशास्त्री नरसंहार के एजंडे को अमल में लाने में कोई कसर नहीं छोड़ने वाले। भारतीय जनता के खिलाफ एकाधिकारवादी सर्वात्मक आक्रमण में इतनी तेजी कभी नहीं देखी गयी।
एक्सकैलिबर स्टीवेंस विश्वास
पाकिस्तान के अधिकारियों ने स्वतंत्रता संग्राम सेनानी भगत सिंह की क्रांतिकारी भावना और इस उपमहाद्वीप में ब्रितानी शासकों के खिलाफ उनकी भूमिका को स्वीकार करते हुए पूर्वी शहर लाहौर में एक चौराहे का नाम भगत सिंह के नाम पर रखा है। अधिकारियों ने बताया कि शदमान चौक को अब भगत सिंह चौक के नाम से जाना जाएगा। उल्लेखनीय है कि मार्च 1931 में लाहौर जेल में भगत सिंह को फांसी दे दी गई थी। यह वही स्थान है जहां बाद में चौराहा बनाया गया।लेकिन शहादेआजम भगत सिंह अब हमारे नायक नहीं है। होते तो विदेशी कंपनियों की गुलामी में जीने के लिए हम इतने बेताब नहीं होते।जिस साम्राज्यवाद के खिलाफ जल जंगल जमीन के हक हकूक के लिए भगत सिंह और दूसरे स्वतंत्रता सेनानियों ने शहादतें दी है, खुले बाजार बने देश को उसी वैस्विक साम्राज्यवाद के हवाले कर दिया है सत्तावर्ग ने और हमारे रगों में खून नहीं खौलता।
अश्वमेध यज्ञ थमने के आसार नहीं है। ममता दिल्ली से विदेशी पूंजी के खिलाफ जंग लड़ने के लिए दिल्ली में है तो वामपंथी उनपर तीखा प्रहार करने में लगे हैं। जबकि यूपीए और राजग संसदीय नौटंकी के बाद अमेरिकी हितों के लिए मजबूती से एक जुट हैं। सरकार नहीं गिरेगी, इससे आश्वस्त डा. मनमोहन सिंह, उनकी सरकार और कारपोरेट अर्थशास्त्री नरसंहार के एजंडे को अमल में लाने में कोई कसर नहीं छोड़ने वाले। भारतीय जनता के खिलाफ एकाधिकारवादी सर्वात्मक आक्रमण में इतनी तेजी कभी नहीं देखी गयी।शायद यह पहला मौका है जब केंद्र सरकार की नीतियों के खिलाफ किसी राज्य के मुख्यमंत्री का राष्ट्रीय राजधानी दिल्ली के जंतर मंतर पर प्रदर्शन होगा।सोशल मीडिया जैसे ट्विटर, फेसबुक और बंगाल में सार्वजनिक सभाओं के माध्यम से उन्होंने अपनी नाराजगी जताते हुए पहले ही कह दिया है कि 'आर्थिक सुधार के नाम पर केंद्र सरकारलोगों को लूट रही है।' उसके बाद बनर्जी अपना विरोध प्रदर्शन संप्रग के द्वार पर लाने जा रही हैं। टेलीविजन पर जारी उनके बयान को कोलकाता में बड़े पर्दों पर दिखाए जाने की संभावना है। तृणमूल कांग्रेस की प्रमुख और पश्चिम बंगाल की मुख्यमंत्री ममता बनर्जी केंद्र सरकार के आर्थिक सुधारों- खुदरा क्षेत्र में एफडीआई, सब्सिडी वाले रसोई गैस सिलिंडरों की संख्या सीमा तय किए जाने और डीजल की कीमतों में बढ़ोतरी के खिलाफ 1 अक्टूबर को प्रदर्शन करेंगी। इसके उलट जनता दल यू के राष्ट्रीय अध्यक्ष व राजग संयोजक शरद यादव ने कहा कि प्रधानमंत्री डॉ. मनमोहन सिंह अभी आराम से रहें। हम संसद में संप्रग के खिलाफ अविश्वास प्रस्ताव नहीं लाएंगे, लेकिन यह तय है कि अगले चुनाव में मनमोहन हवा हो जाएंगे। जनता हमेशा के लिए उन्हें सबक सिखा देगी।'राजनीति में नैतिकता के महत्व पर जोर देते हुए यादव ने कहा, 'जब हवाला कांड में मेरा नाम घसीटा गया तो मैंने कोर्ट का फैसला आने से पहले इस्तीफा दे दिया। बाद में अदालत से क्लीन-चिट मिली। इस बीच मैं प्रधानमंत्री बन सकते थे, लेकिन देवगौड़ा बने।' शरद यादव ने रविवार को पटना में एफडीआइ से लेकर मुख्यमंत्री नीतीश कुमार की अधिकार यात्रा जैसे विषयों पर अपनी बातें रखीं। कहा कि वह दिल्ली में ममता बनर्जी की रैली में शामिल होंगे। केंद्र सरकार की गलत नीतियों के खिलाफ जनता को जागरूक करने देश में हर जगह जाएंगे। मनमोहन ने इंदिरा गांधी को भी पीछे छोड़ दिया है। इंदिरा गांधी ने इमरजेंसी लगाई थी तो इसे वापस भी ले लिया था। मनमोहन ने तो एफडीआइ के जरिए 25 करोड़ लोगों के पेट पर ताला लगाने का काम किया है। 2जी स्पेक्ट्रम पर सुप्रीम कोर्ट के फैसले को दुर्भाग्यपूर्ण बताते हुए उन्होंने कहा कि पॉलिसी का मतलब यह नहीं कि लूट की छूट हो। कोयले की भी लूट हुई है। आवंटित कोल-ब्लॉक का 10 प्रतिशत नवीन जिंदल के पास है, जो कांग्रेस सांसद हैं। उनकी कंपनी का टर्न-ओवर 58,000 करोड़ हो गया है, जो सरकारी कंपनी 'सेल' के 38,000 करोड़ के टर्न-ओवर से बहुत अधिक है। अभी एक पखवाड़े पहले ही संयुक्त प्रगतिशील गठबंधन (संप्रग) सरकार के सबसे बड़े सहयोगी दल तृणमूल कांग्रेस ने समर्थन वापस ले लिया था।बनर्जी शनिवार से ही दिल्ली में हैं। उनके साथ 19 सांसद मिलकर एक बड़े विरोध प्रदर्शन की तैयारी में जुटे हैं। दिलचस्प है कि यहीं पर वाम दलों के साथ समाजवादी पार्टी के प्रमुख मुलायम सिंह यादव और तेलगूदेशम पार्टी के प्रमुख चंद्रबाबू नायडू ने भी 20 सितंबर के राष्ट्रव्यापी बंद के दौरान विरोध प्रदर्शन किया था और गिरफ्तारी दी थी।
पूर्व प्रधानमंत्री अटल बिहारी वाजपेयी की लाइन अमेरिकापरस्त और इजराइल समर्थक है। मनमोहन सिंह ने जो कारपोरेट आर्थिक क्रांति कर दी, उसकी नींव तो वाजपेयी की विदेश नीति से मजबूत हुई। वाजपेयी भले ही अस्वस्थता के कारण अब सियासत में सक्रिय न हों, लेकिन भाजपा उन्हीं की राजनीतिक लाइन पर चलती रहेगी। आगामी चुनाव के लिए कमर कस चुकी पार्टी की सूरजकुंड बैठक से तो यही संकेत मिला है। वाजपेयी की लाइन पर चलते हुए भाजपा ने एनडीए प्लस की योजना पर अमल करने के लिए सूरजकुंड बैठक में विवादित मुद्दों से दूरी बना ली।अयोध्या में भव्य राम मंदिर के निर्माण का संकल्प हो या कश्मीर में धारा 370 हटाने का मामला, सूरजकुंड में इन विवादित मुद्दों को लेकर एक शब्द भी सुनाई नहीं दिया। भाजपा का सबसे ज्यादा जोर केंद्र की यूपीए सरकार को कोसने पर रहा। इसी के साथ एनडीए शासन में अटल सरकार की उपलब्धियों का भी बखान होता रहा।लेकिन यह मामला गरजने तक सीमित है, बरसने की कोई योजना नहीं है।
एअर इंडिया को बेचने की पूरी तैयारी हो गयी है। नीति तैयार है, अमल में लाने की देरी है। इसके बाद स्टेट बैंक आफ इंडिया और जीवन बीमा निगम की बारी। विमानन क्षेत्र में विदेशी पूंजी निवेश की छूट का मकसद ही था कि एअर इंडिया को बेच दिया जाये और निजी विमानन कंपनियों को राहत दे दी जाये, जो संकट में हैं।घाटे में चल रही राष्ट्रीय एयरलाइन एयर इंडिया का आंशिक रूप से निजीकरण किया जाना चाहिए। कंपनी मामलों के मंत्रालय द्वारा कराए गए एक अध्ययन में कहा गया है कि निजी क्षेत्र के निवेशक कंपनी के मुनाफे को अधिकतम करने का प्रयास करेंगे और साथ ही वे उसकी परिचालन संबंधी समस्याओं को भी हल करने का प्रयास करेंगे।भारतीय कंपनी मामलों के संस्थान (आईआईसीए) की अध्ययन रिपोर्ट नागरिक उड्यन क्षेत्र का प्रतिस्पर्धा ढांचा में कहा गया है कि निजी क्षेत्र के निवेशकों तथा एयरलाइन के परिचालन के लिए पूंजी लाने से एयर इंडिया के कुछ परिचालनगत मुद्दों को हल करने में मदद मिलेगी। वहीं सरकारी धन का इस्तेमाल अन्य उद्देश्यों के लिए हो सकेगा।हालांकि, नागरिक उड्यन मंत्री अजित सिंह ने हाल में एयर इंडिया के निजीकरण की संभावना से इनकार किया है, क्योंकि सरकार एयरलाइन के पुनर्गठन के लिए 30,000 करोड़ रुपये की पूंजी डाल रही है।आईआईसीए ने विमानन क्षेत्र के प्रतिस्पर्धा संबंधी मुद्दों के विश्लेषण के लिए नाथन इंडिया को सलाहकार नियुक्त किया था। रिपोर्ट में कहा गया है कि एयर कारपोरेशन एक्ट 1953 के कानूनी ढांचे के अनुसार सरकार राष्ट्रीय एयरलाइन को पूंजीगत खर्च के लिए धन उपलब्ध करा सकती है और साथ ही संभावित राहत पैकेज भी दे सकती है।उधर,वेतन नहीं मिलने पर किंगफिशर एयरलाइंस के अभियंताओं का एक समूह रविवार की शाम हड़ताल पर चला गया जिससे उड़ानें प्रभावित हो रही हैं।किंगफिशर सूत्रों ने कहा कि दिल्ली और मुंबई के अभियंता रविवार शाम से हड़ताल पर चले गए हैं। वह अपने सात महीने के बकाया वेतन का तुरंत भुगतान चाहते हैं।
सूत्रों ने बताया कि हड़ताल के कारण कुछ उड़ानों में देर हुई है। फिलहाल प्रबंधक रैंक के अभियंताओं की सेवाएं ली जा रही हैं। डीजीसीए के नियमों के मुताबिक अभियंता द्वारा प्रमाणित नहीं होने पर विमान उड़ान नहीं भर सकता है।
भारत सरकार की आर्थिक नीतियां अब जनहित में नहीं, बाजार के हित में बनती है और इसमें सबसे बड़ी भूमिका भारतीय रिजर्व बैंक की है। कृषि या औद्योगिक उत्पादन में सुधार कोई प्राथमिकता नहीं है। उद्योगपतियों को छूट खत्म करके राजस्व घाटा और विदेशी कर्ज कम रकरने की कोई कोशिश नहीं है। सरकारी खर्च सामाजिकयोजनाओं के बहाने बढ़ाकर उपभोक्ता भाजार के विस्तार की रणनीति है।इसीके तहत भारतीय रिजर्व बैंक के डिप्टी गवर्नर आनंद सिन्हा ने बीजिंग में कहा कि भारत वैश्विक आर्थिक नरमी से अधिक तेजी से उबर सकता है क्योंकि भारतीय अर्थव्यवस्था मुख्यत: घरेलू खपत से संचालित चलती है। पर उन्होंने कहा कि इसके लिए जरूरी है कि देश को अपना घर अच्छी तरह संभाल कर चलना होगा। सिन्हा ने बातचीत में कहा कि निराशा की भावना तथा उत्साह के स्तर में कमी जैसे विश्वाव के कारकों से भी अर्थव्यवस्था प्रभावित करता है।उन्होंने कहा कि चीन व भारत की दोनों अर्थव्यवस्थाओं पर वैश्विक आर्थिक नरमी का असर रहा है लेकिन मुख्यत: घरेलू खपत से संचालित अर्थव्यवस्था के कारण भारत तेजी से उबर सकता है। एक सवाल में जवाब में सिन्हा ने कहा कि लेकिन इसके लिए हमें अपने घर को अच्छी तरह संभाल कर चलना होगा। घरेलू अर्थव्यवस्था पर निर्भर रहते हुए हम निर्यात क्षेत्र के प्रदर्शन से कम प्रभावित होंगे। यह हमारी ताकत सबित हो सकती है। लेकिन हमें अपने सारे प्रयासों के बीच तालमेल बिठाना होगा।इस सवाल पर कि आर्थिक वृद्धि में नरमी पर काबू पाने के लिए भारत को क्या कदम उठाने चाहिए तो सिन्हा ने कहा कि हमें मुद्रास्फीति पर काबू करना पाना होगा। अगर हम इस पर काबू पा लेते हैं तो वृद्धि परिदृश्य अच्छा होगा। एक बार वृद्धि शुरू होने के बाद स्थितियां बेहतर हो जाती हैं। भारत में खुदरा मुद्रास्फीति दहाई अंक में 10.03 प्रतिशत है। भारतीय रिजर्व बैंक बार बार कहता रहा है कि उसकी मौद्रिक नीति मुद्रास्फीति पर काबू पाने पर केंद्रित रहती है।
सामान्य कर परिवर्जन रोधी नियम (गार) से जुड़े कराधान मुद्दों को देख रही पार्थसारथी शोम समिति सोमवार को अपनी अंतिम रिपोर्ट वित्त मंत्री पी चिदंबरम को सौंप सकती है।वित्त मंत्रालय के सूत्रों ने बताया कि पार्थसारथी शोम समिति की अंतिम रिपोर्ट एक अक्टूबर, 2012 को वित्त मंत्रालय को सौंप दी जाएगी।प्रधानमंत्री मनमोहन सिंह ने जुलाई में कर विशेषज्ञ पार्थसारथी शोम की अध्यक्षता में एक समिति गठित की थी। समिति को गार पर विदेशी एवं घरेलू निवेशकों की चिंताओं का समाधान निकालने का काम सौंपा गया। समिति चिदंबरम को अपनी रिपोर्ट का मसौदा एक सितंबर को सौंप चुकी है।सरकार ने बाद में विशेषज्ञ समिति का दायरा बढ़ाकर उसमें अनिवासी करदाताओं की चिंताओं को भी शामिल कर दिया।
इसी बीच रिलायंस इंडस्ट्रीज ने सरकार से केजी-6 फील्डस से उत्पादित गैस की कीमत एक अप्रैल, 2014 से तीन गुनी करने का प्रस्ताव किया है। इससे गैस का दाम 13 डॉलर प्रति यूनिट के आस-पास तक जा सकता है।अभी कंपनी को अपनी गैस सरकार नियंत्रित 4.205 डॉलर प्रति इकाई के भाव पर बेचना पड़ रहा है जहां एक इकाई 10 लाख ब्रिटिश थर्मल यूनिट (एमएमबीटीयू) ऊर्जा के बराबर है। जबकि बाजार में इस समय गैस का दाम इसका तीन गुना तक है।आरआईएल की इस परियोजना में दस प्रतिशत की साक्षेदार निको रिसोर्सेज ने कहा है कि जून, 2012 में आपरेटर (आरआईएल) ने कच्चे तेल के मूल्य मूल्य पर आधारित फार्मूले के अनुसार गैस मूल्य तय करने का प्रस्ताव सरकार को सौंपा है। यह प्रस्ताव एक अप्रैल, 2014 से बिक्री के नए अनुबंधों के संबंध में है।कंपनी ने कहा कि अगर इस फार्मुले को मंजूरी मिल जाती है तो इससे 100 डॉलर प्रति बैरल के कच्चे तेल के आधार पर गैस की दर 13 डॉलर प्रति यूनिट तक होगी।
वित्तीय सुदृढ़ीकरण पर विजय केलकर समिति की रिपोर्ट कहती है कि भारतीय अर्थव्यवस्था बड़े नाजुक दौर से गुजर रही है। लगातार दूसरे साल राजकोषीय घाटा एक बड़े अंतर से अपने बजटीय लक्ष्य से चूक सकता है- यह सकल घरेलू उत्पाद का 6.1 फीसदी रह सकता है जो बजट अनुमान से पूरा एक फीसदी अधिक है। भारत में एक जनसांख्यिकी उभार देखने को मिल रहा है, हर साल लाखों लोग कामगार फौज में शामिल हो रहे हैं। ऐसे में विकास में तेजी लाने के लिए वित्तीय प्रयासों की जरूरत होगी, अन्यथा जनसांख्यिकी लाभ एक श्राप बन जाएगा। इस रिपोर्ट में कहा गया है कि अगर इस दिशा में कोई कदम नहीं उठाया जाता है तो लगभग 1991 जैसा संकट पैदा हो सकता है। समिति ने 2012-13 में राजकोषीय घाटा कम कर जीडीपी का 5.2 फीसदी करने का सुझाव दिया है। हालांकि इनमें से कुछ सुझाव जिनमें कर नीति पर भी सुझाव शामिल है, के लिए कानून में बदलाव लाने की जरूरत होगी। सुझाव दिया गया है वह यह है कि संप्रग सरकार प्रत्यक्ष कर विधेयक पर धीरे कदम बढ़ाए। कर और जीडीपी के अनुपात को बढ़ाने की जरूरत है, इसे निकट अवधि में कम करने की नहीं। रिपोर्ट में सबसे खास बात यह दोहराना है कि खाद और ईंधन सब्सिडी को हमेशा जारी नहीं रखा जा सकता (और यह कि खाद्य सब्सिडी को तत्काल नहीं बढ़ाया जाना चाहिए)। साथ ही धीरे धीरे पेट्रोलियम उत्पादों की कीमतों को नियंत्रण मुक्त करना जरूरी है और इसमें देरी नहीं की जानी चाहिए। साथ ही सरकारी खरीद की ऊंची दर को ध्यान में रखते हुए राशन की दुकानों पर मिलने वाले खाद्य उत्पादों के दाम भी बढ़ाने होंगे।
Free market economy is injected with reform cromin again and again. But revival scenario does not satisfy corporate greed as yet.Corporate governance of India is all set to privatise AIR India.
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Free market economy is injected with reform cromin again and again. But revival scenario does not satisfy corporate greed as yet.Corporate governance of India is all set to privatise AIR India. Backed by robust economic growth, its huge geographical expanses and a population that tops well over a billion both at home and abroad, the sky should be the limit for India's civil aviation sector.This could not be further from reality, with many of the country's carriers buckling under the weight of excessive debt, high taxes and an indigenous population of whom less than one percent regularly use air travel.Aviation sector is opened for foreign capital only recently.Now the policy is also finalised. Only an executive order after cabinet green signal is waited.Meanwhile, overseas investors pumped in more than Rs 19,000 crore (USD 3.5 billion) in the Indian stock market in September, the highest monthly inflow in seven months, on account of bold economic reform initiatives taken by the government. Thus, FII investment in the country's equity market has reached Rs 82,331 crore (USD 15.85 billion) so far this year, and Rs 25,140 crore (USD 5 billion) in the debt market during the same period. Reserve Bank banks on consumer market to boost the economy as Reserve Bank Deputy Governor Anand Sinha said today,India can recover from global economic slowdown faster than China as the economy is driven by domestic consumption, but the country needs to "get its act together" for this to happen!Sinha is in Beijing to take part in the Regional Policy Forum on Financial Stability and Macro-prudential Supervision.
On the other hand,an uptrend in the stock market and various reform measures being undertaken by the government and regulator Sebi may help revive the initial public offering (IPO) segment in the coming months, experts believe.While the number of the companies having filed IPO papers with Sebi (Securities and Exchange Board of India) is not very high, a number of entities have already got the go-ahead from the market regulator but have been holding on their plans in the absence of conducive market conditions. In the quarter ending today, at least four companies, including Bharti Infratel, G B Tools and Forgings Ltd, Just Dial Ltd and V-Mart Ltd have filed their respective Draft Red Herring Prospectus (DRHP) to raise funds through IPOs.
For yet another stimulus,Parthasarathi Shome panel, looking into the taxation issues relating to GAAR (General Anti-Avoidance Rules), is likely to submit its final report to Finance Minister P Chidambaram on Monday.It would allow tax evation and enable partially deactivated black money cycle!
Builder mafia promoter raj has to be further strengthen asThe Finance Ministry is considering a proposal to relax funding norms for the realty sector so that good housing projects are not starved of funds.
"The Ministry is actively looking at options ... how to ramp up demand in the housing sector. We are studying all the possible impediments," an official source said.
"We are of the view that good project will be funded," the source said.
Banks are cautious in lending to the real estate developers because there is a huge mismatch in price and demand.
While dismissing general perception of holding on to inventories, real estate developers have been expressing concern that many projects are stalled due to lack of funds.
Loss-making national carrier Air India should be partly privatised as private investors will focus on maximising profit and in turn solve the carrier's operational issues, a study 'Competitive Framework of Civil Aviation Sector' of the Indian Institute of Corporate Affairs (IICA), commissioned by the Corporate Affairs Ministry has said.
"Bringing in private players and capital to operate India's national carrier will help address some of the airline's operational issues, while freeing government funds for other purposes".
"Partially privatising Air India would create incentives for the carrier to compete with other airlines, since Air India's private investors would seek to maximise return on their investment," said the Study Report
However, Civil Aviation Minister Ajit Singh recently ruled out any move to privatise Air India as government was pumping in Rs 30,000 for its restructuring.
Airlines flying to Indian airports could face an auction for peak-time landing slots in a shake-up of aviation policy under the government's economic reform drive.
Authorities are also in talks with suppliers to cut taxes on aircraft fuel, a move that would help local carriers which posted losses of $2.5 billion last year as they grappled with high airport charges and below-cost fares.
Debt-strapped Kingfisher Airlines, once India's No 2 airline, is operating only a quarter of its fleet while national carrier Air India is reliant on a $5.8 billion taxpayer bailout to stay in the air.
Air India, the nation's state-owned flag carrier was earlier this year granted a $5.8bn bailout from the government to shore up its leaky finances, not to mention having to contend with pilot strikes and a botched attempt to join Star Alliance.
Things are not much rosier at Kingfisher Airlines, which had the second largest market share in India until the financial crisis. In early 2012, the operator was forced to scrap all of its international routes as well as suffering the indignity of having 75 percent of its aircraft repossessed by creditors, while its debts estimated at $1.3bn led Kingfisher to be suspended from the International Air Travel Association.
Earlier this month, India announced major reforms designed to revive economic growth and avoid a ratings downgrade.
"The policies that are now in place were made several years back. Things have changed now. We need to adapt to the changing times," civil aviation minister Ajit Singh told reporters on Friday.
He gave few details but analysts pointed out that Indian airport charges are already very high, with New Delhi the world's costliest, according to the International Air Transport Association.
Singh also said he would "nudge" local carriers to operate more flights to smaller towns but did not elaborate.
Analysts said the current system of allocating landing and takeoff slots on an ad hoc basis has become a major headache with the increase in traffic in Asia's third-largest economy and the emergence of low-cost carriers.
The new developments come just weeks after India, which has an aviation market a fifth the size of China's despite comparable populations, relaxed rules to allow foreign airlines to own up to 49 per cent in Indian carriers.
Singh said Maharashtra, home to India's financial hub Mumbai, is willing to cut taxes on jet fuel.
Aviation fuel, which makes up about half the cost for an airline, is about 50-60 per cent costlier in India, mostly due to state taxes.
Singh also said ailing Kingfisher Airlines, owned by billionaire liquor baron Vijay Mallya, could lose its licence to fly if it fails to operate at least five aircraft.
Lenders to Kingfisher held inconclusive talks about the beleaguered carrier's turnaround plan on Thursday and will meet again next month, a source told Reuters.
Mallya told shareholders on Wednesday he was in talks with foreign carriers for investments, reiterating comments he has made over the past year without any concrete developments.
The very announcement of the government's decision to allow foreign airlines to invest in domestic carriers has sent the stocks of Kingfisher Airlines and SpiceJet soaring, the exception being Jet Airways that has seen its stocks decline.
The biggest gainer among the three listed Indian carriers is Kingfisher Airlines, whose stocks went up by 60.88 per cent from Rs 10.02 on September 13, to Rs 16.12 on September 28.
During the same period, the value of SpiceJet stocks rose by 12.25 per cent to Rs 37.10. Jet Airways' stock fell 4.35 per cent during the period and closed at Rs 345.55 on Friday.
The government's relaxation of the FDI policy in aviation is seen as a major boost for the aviation sector.
Kingfisher, SpiceJet and GoAir are likely to get foreign partners, which will help them financially and give access to the large network and operational efficiencies of the international carriers.
Jet Airways and IndiGo have not been in favour of the policy relaxation.
Analysts say that the rise in stock value has been largely fuelled by the government's announcement.
"Jet has lost its stock value in recent times, as it has not shown interest in getting a foreign partner whereas the other two airlines have shown interest in getting foreign partners. The stock values are up on sentiments, as the finances of the aviation companies are still strained," said Mahantesh Sabard, senior analyst at financial services firm Fortune Equity India.
Sabard further said that the operating cost during the second quarter of the current fiscal are higher and is likely to impact finances of the airlines.
IICA had nominated Nathan India as consultants to carry out an analysis on competition-related issues in the civil aviation sector.
The report pointed out that the Air Corporation Act 1953 provided a legislative framework within which the Government could provide funds for capital expenditures as well as potential bailout funds for the national carrier.
However, "this regulation gives Air India an unfair competitive advantage, by creating a framework through which it may apply for government financial assistance. The Act lacks competitive neutrality with regards to airlines in terms of access to government funds for capital expenditures and potential bailout," it said. The report further said the regulation which prescribes that operational plans submitted by the national carrier would be considered before allocation of traffic rights to other eligible applicants, was deterrent to competition in the market.
"This rule lacks competitive neutrality in assigning traffic rights. In order to increase its customer base, Air India will take the best available routes, thus maintaining an unfair competitive advantage over other eligible Indian international carriers," it said.
The report recommended that aviation regulator DGCA should consider abandoning preferential international route assignments to the national carrier, which would allow private carriers to compete with Air India.
Taking away Air India's right to priority route assignments, it said, would also help other Indian international carriers expand service to additional global destinations, leading to expansion in the range of choices for consumers.
A collective gasp of relief will have been let out then on 14 September, when India's government cleared a change in policy that would allow foreign airlines to purchase shareholdings of up to 49 percent in domestic carriers for the first time in fifteen years. The decision should clear the runway for overseas parties to provide a much-needed capital injection in the industry. Given the troubles the sector is facing, though, it begs the question: India's civil aviation industry may be up for sale, but who is buying?
Airlines in the Gulf, some of which are flush with government petrodollars and already serving a large Indian expat population, are interested, it would seem.
Neil Mills, CEO of low-cost airline SpiceJet told Arabian Business days before the foreign direct investment ruling went through that the Chennai-based carrier had held "preliminary discussions" with at least one carrier based in the Gulf.
"There have been preliminary discussions to check in principle whether there is interest on both sides and the confirmation there would be 'yes there is'," Mills said. He declined to disclose which airline or airlines he was referring to, although a senior industry source later told Arabian Business that Qatar Airways was one of them.
The negotiations, Mills explained, had largely been academic up to that point. "[Talks have] been on a preliminary basis, because they've quite rightly said 'what's the point in investing money in due diligence if the rule to enable [an investment] doesn't even exist'," he added.
Incredible India and key aviation partners are among over 100 international air transport organisations in Abu Dhabi this weekend, discussing the latest developments in the global aviation sector.
Spicejet, Indigo, Air India Express, Kingfisher, Jet Airways, the Airports Authority of India, Goa Airport, and Kolkatta International Airport are all in attendance, showcasing their latest products and developments at the 18th World Routes Development Forum.
Senior executives from these companies are rubbing shoulders with government ministers and aerospace leaders in an unparalleled environment which facilitates networking and learning this weekend.
Strengthened by the array of co-located activities taking place as part of the World Route Development Forum, the summit provides an exclusive arena which allows everyone to meet the people who are creating the future of air transport.
The future Indian aviation outlook certainly looks rosy for India.
According to Airbus' latest market forecast, Indian carriers will require 1,043 new aircraft valued at US$145 billion between now and 2030 to satisfy surging annual demand.
India's market for new aircraft makes it the world's fourth largest in both number of aircraft and value.
Indian annual passenger traffic growth rates of 7.2 per cent are well above the regional Asia Pacific average growth rate of 5.9 per cent and the world average 4.8 per cent.
Of the requirement for 1,020 new passenger aircraft, some 860 will be for growth and 160 to replace the eldest aircraft in the existing fleet of 327.
By 2030, this means that India's passenger fleet will more than triple to some 1,180 aircraft.
The new passenger aircraft include 646 single aisles like the A320 and A320neo Family, 308 twin aisles like the A350 XWB and A330, and 66 very large aircraft such as the A380.
Growing urbanisation and population concentrations combined with a growing middle class and dynamic economic growth are driving demand and this trend is expected to continue.
Despite near term challenges, the Indian economy is forecast to continue expanding, helping India's growth in domestic air travel to reach even higher growth rates of nearly ten per cent annually, making it one of the fastest growing aviation markets anywhere in the world.
"By 2030, India's economy is forecast to be the fourth largest in the world creating exceptional potential for growth in the aviation sector.
"Through our Indian industrial partnerships we are proud to boast that every A320 today is partly made in India," said Kiran Rao, president of Airbus India.
Among some of the latest news from India, Air India became the fifth airline in the world to take delivery of the Boeing Dreamliner 787.
"The 787 will allow Air India to open new routes in a dynamic marketplace and provide the best in-flight experience for our passengers," said Rohit Nandan, Air India chairman.
Air India follows in the footsteps of All Nippon Airways, Japan Airlines, LAN Airlines and Ethiopia Airlines.
This delivery is the first of 27 Dreamliners for Air India.
The airplane is equipped with 18 business class seats and 238 economy class seats.
The 787 has the range and capability to allow Air India to deploy the Dreamliner on many routes including the Middle East, Europe, Asia and Australia.
"We are pleased to celebrate another historic moment in our nearly seven-decade long relationship," said Dinesh Keskar, senior vice president of Asia Pacific and India Sales for Boeing Commercial Airplanes.
"I am sure Air India and their customers will be thrilled to experience the revolutionary features on the 787, an airplane that will be the key focus of the airline's turnaround plan."
This is the latest coup for the Indian Government Tourist Office, which was named World's Leading Tourist Board as well as being named World's Leading Destination by the World Travel Awards in 2011.
Drawing on the success already achieved by the destination and its projected growth, later this the World Travel Awards Grand Final will be staged in Delhi later this year, drawing the heads of the global travel and tourism industry.
Speaking to PTI, Reserve Bank Deputy Governor Anand Sinha also said "confidence issues like the general pessimism and not-so-good-feel factor also affected the economy".
"Both economies (India and China) are affected by the global economic slowdown. But India being a domestic consumption driven economy, could recover faster," he said.
"But for that we have to get our act together. Being dependent on domestic economy, we would be less affected by export sector performance. So, that could be our strength. But we have to get our act together and whatever weaknesses we have to get around them," he said responding to a question.
When asked what should be done by India to arrest the slide in growth, he said, "We have to get hold of inflation. If we get hold of it, growth will have better prospect. Once growth takes off things would be better. Retail inflation in India is in double digits at 10.03 per cent. RBI had been repeatedly saying that focus of its monetary policy is on controlling inflation.
"We must realise that even if we put our domestic situation on sound footing, what happens in the rest of the world, we cannot be totally immune to that. So you will not have the same growth rate as we would have had if the world economy is in good shape."
Sinha also said "not so good feel factor", besides the global economic slowdown, for the current domestic situation.
"One reason is global economic slowdown. That has affected us is the trade channel. We are not export dependent but exports suffered due to global economic crisis. Apart from trade issues, confidence issues like the general pessimism and not so good feel factor also affected the economy," he said, adding that sentiments are very important when it comes to taking business decision.
Sinha also spoke about the negative influence of financial markets on India.
"We are globalised to some extent. There also we are affected. It affects the equity markets and foreign exchange rate," he said.
However, according to Sinha, the essential problem in India is inflation.
"We are a supply constrained economy. Because of that inflation has risen, essentially the food inflation. That is a supply side issue," he said.
The other factor was that India has been affected by loose monitory policy being followed by various countries to tide over the crisis which in turn led to increase in commodity prices, he said.
Also rising oil prices affected the economy. India is heavily dependent on oil which also adds to inflation, he said adding that the prices keep going and up down.
"As a result we have to tighten interest rates," he said.
On growth rates he said, "I would only say the growth has to go upwards. How much we can go I cannot say. All policies have been geared to go up," he said.
India registered 5.5 per cent economic growth rate in April-June period this financial year-- the worst first quarter performance in a decade. The expansion was mainly pulled down by poor show by the manufacturing sector.
About RBI cutting down the interest rates he said, "RBI is mindful of inflation growth in excess. At the same time RBI first task is to keep inflation down. What will happen in the next few weeks is not possible for me to say. Intense review is carried before any decision is taken so I won't be able to tell you".
RBI's half yearly monetary policy review is expected on October 30.
On the success of FDI in retail he said, it all depends on how much India gets in the end.
"On the positive side it improved sentiment as was shown in the market. Rupee has rebounded to a considerable extent. There is certainly promise," he said.
At the conference on Mitigating Procyclicality in Banking and Bank Regulation, Sinha also spoke of how Indian banks managed to tide over the 2008 economic crisis by following policy of Capital Adequacy Ratio in certain sectors, which came in handy during the crunch time.
He said there is also general discussion about the new international banking regulations being contemplated to ward off future crisis.
"There are apprehensions in India an all the countries, when the capital requirement becomes much higher what happens to growth."
In September, Foreign Institutional Investors (FIIs) were gross buyers of shares worth Rs 66,752 crore, while they sold equities amounting to Rs 47,491 crore translating into a net inflow of Rs 19,261 crore (USD 3.56 billion), according to the data available with the market regulator Sebi.
This was the highest net investment by FIIs in stocks since February, when they had infused Rs 25,212 crore. Besides, FIIs had infused Rs 10,804 crore in August and Rs 10,273 crore in July.
Market experts said the month of September has seen extraordinary amount of FII flows on several tough economic decisions including opening up FDI in retail and aviation sectors, capping up of cooking gas subsidy and hike diesel prices, taken by the government.
"FII inflows was driven by policy reforms announced by the government and I think they will continue to invest in the domestic equity market in next six to eight months as well on further reforms in sectors like insurance and pharma," Wellindia Vice President Research Vivek Negi said.
Another market analyst, Destimoney Securities MD and CEO Sudip Bandhopadhyay said,"The overall sentiment with regards to growth has enhanced the FII flows. Besides, foreign investors have also got support from easing of monetary policy by the US Federal Reserve."
Apart from equity, FIIs also invested Rs 622 crore in the debt market in the current month.
The strong FII inflows have pushed the BSE's benchmark Sensex by 1,382 points or eight per cent to settle at 18,762.74 points on Friday.
As on September 28, the number of registered FIIs in the country stood at 1,753 and total number of sub-accounts were 6,325 during the same period.
Market analysts expect the trend to pick up in the coming weeks, as the government and Sebi have expressed their intention to revive equity culture in the country and help channelise the household income into stocks, mutual funds and insurance sectors, rather than in idle assets like gold.
A revival in the secondary market trends will also help the firms shift their focus to IPOs for their fund-raising plans. Most of the companies plan to utilise their proposed
IPO proceeds for capacity expansion as well as working capital requirements.
"The current market conditions has turned favourable for companies planning to come out with their IPOs mainly on account of various initiatives taken by the government," Sudip Bandhopadhyay MD and CEO at Destimoney Securities said.
"Besides, festive season is also approaching so I expect many companies that withdrew their IPO and companies that have not hit the capital market despite getting Sebi's approval on subdued market conditions would definitely plan to go ahead with their public issues," he said.
In the last three months, broader market Sensex gained over 1,300 points or more than seven per cent as Foreign Institutional Investors (FIIs) invested a hefty sum of a
little over Rs 40,000 crore on the back of a slew of reforms initiated by the government.
According to market analysts, several tough economic decisions, including to open up FDI in retail and aviation sectors, capping up of cooking gas subsidy and hike diesel prices, taken by the government recently have boosted the secondary market, which would eventually help companies to launch their IPOs.
"Any company which was planning for the IPO in the last two-three years can hit the market as it is any excellent time for the IPO," Wellindia President (Research) Vivek Negi said.
He further said that the success of any IPO depends on the sound fundamentals and pricing issue.
Sebi has already floated a discussion paper on 'mandatory safety net mechanism' in IPOs, a move that would help in fair-pricing of the public offers and would provide capital guarantee on a certain portion of investments.
Besides, the regulator has also announced various other IPO market reforms, steps for enhanced distribution network, incentives for brokers, bidding through electronic IPO
platforms and allotment of a minimum lot of shares.
These steps are likely to help in creating a greater appetite for IPOs in the near future, provided the market conditions remain conducive and there are no adverse global
developments that might affect the domestic investor sentiments.
Earlier this month, Bharti Infratel, tower unit of telecom giant Bharti Airtel, had filed papers for an IPO with Sebi and is expected to raise up to USD 1 billion (about Rs 5,500 crore).
Rashtriya Ispat Nigam Ltd (RINL), which had deferred its IPO plans twice since the filing of the draft documents in May due to volatile market conditions, is most likely to hit the capital market in the middle of the next month.
The RINL's IPO, which would mark the kick-off the government's disinvestment process for the current fiscal. The government is targeting to raise Rs 30,000 crore through share sale plan during the period.
Besides RINL, four other firms -- Goodwill Hospital and Research Centre, Fast Train Cargo, Ace Tours Worldwide and C Mahendra Infojewels -- had filed their respective IPO documents during April-May period with the Sebi, but none of them hit the capital on lacklustre market conditions.
Besides, two companies packaging materials maker Plastene India and auto parts manufacturer Samvardhana Motherson Finance - shelved their IPO plans in May citing poor response from investors amid weak broader market.
Goodwill Hospital had also pulled out its IPO in January, but once again filed draft papers in May to mop up Rs 98 crore through share sale. The IPO was shelved after the issue failed to get subscription of even one per cent of its shares on sale. It was the first company to withdraw its IPO in 2012.
In addition, around 20 companies including Reid & Taylor, Micromax Informatics, Embassy Property, Joyalukkas and Tata Autocomp System had called off their IPO plans totalling nearly Rs 9,000 crore in this year, according to SMC Global Securities Strategist & Head of Research Jagannadham Thunuguntla.
|This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (October 2011)|
|Founded||July 1932 (as Tata Airlines)|
|Commenced operations|| October 15, 1932 (79 years ago) |
Rohit Nandan, CMD
|Focus cities|| |
|Frequent-flyer program||Flying Returns|
|Airport lounge||Maharaja Lounge|
|Fleet size||123 (+29 orders)|
|Destinations||55 (excl. subsidiaries)|
|Company slogan||Your Palace in the Sky|
|Parent company||Air India Limited|
|Headquarters|| Air India Building, |
Nariman Point, Mumbai, Maharashtra, India
Air India is the flag carrier airline of India. It is part of the government of India owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Europe and North America. Its corporate office is located at the Air India Building at Nariman Point in South Mumbai. Air India has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport. An international hub at Dubai International Airport is currently being planned.
Air India has the fourth largest share in India's domestic air travel market, behind Jet Airways, IndiGo and SpiceJet, as of May 2012. Following its merger with Indian Airlines, Air India has faced multiple problems, including escalating financial losses, discontent amongst employees, and poor customer service. Between September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily due to stiff competition from private Indian carriers. In August 2011, Air India's invitation to join Star Alliance was suspended due to its failure to meet the minimum standards for the membership. In October 2011, talks between the airline and Star Alliance have resumed. In April 2012, the Indian government granted another bailout package to Air India, including Rs300 billion ($5.8 billion) of subsidies.
Tata Sons, a division of Tata Sons Ltd. (now Tata Group) was founded by J. R. D. Tata in 1932. 
The aviator Nevill Vintcent had an idea to run mail flights from Bombay and Colombo that connected with the Imperial Airways flights from the United Kingdom. He found a supporter for his plans from J. R. D. Tata of the Tata Iron and Steel Company. After three years of negotiations Vintcent and Tata won a contract to carry the mail in April 1932 and in July 1932 the Aviation Department of Tata Sons was formed. On 15 October 1932, J.R.D. Tata flew a single-engined De Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Vintcent.
Tata Airlines initially consisted of one Puss Moth aircraft, one Leopard Moth, one palm-thatched shed, one whole time pilot assisted by Tata and Vintcent, one part-time engineer and two apprentice-mechPran Nath Seth, Pran Nath Seth, Sushma Seth Bhat (2005). An introduction to travel and tourism. Sterling Publishers Pvt. Ltd. Retrieved 20 January 2011. Page 112</ref>
Initial service included weekly airmail service with a Puss Moth aircraft between Karachi and Madras via Ahmedabad and Bombay, covering over 1,300 miles. In its very first year of operation, Tata Airlines flew 160,000 miles, carrying 155 passengers and 10.71 ton of mail. In the next few years, Tata Airlines continued to rely for its revenue on the mail contract with the Government of Indi for carriage of surcharged mail, including a considerable quantity of overseas mail brought to Karachi by Imperial Airways. The same year, Tata Airlines launched its longest domestic flight - Bombay to Trivandrum with a six-seater Miles Merlin.
In 1938 it was re-christened as Tata Air Services and later same year was renamed as Tata Airlines. By this time Delhi and Colombo were also serviced.
Following the end of World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India. In 1948, after the independence of India, 49% of the airline was acquired by the Government of India, with an option to purchase an additional 2%. In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International. On 8 June 1948, a Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off from Bombay bound for London Heathrow via Cairo and Geneva. This marked the airline's first long-haul international flight, soon followed by service in 1950 to Nairobi via Aden.
On 25 August 1953, the Government of India exercised its option to purchase a majority stake in the carrier and Air India International Limited was born as one of the fruits of the Air Corporations Act that nationalised the air transportation industry. At the same time all domestic services were transferred to Indian Airlines (now renamed as Indian). In 1954, the airline took delivery of its first L-1049 Super Constellations and inaugurated services to Bangkok, Hong Kong, Tokyo and Singapore.
The jet age
Air India International entered the jet age in 1960 when its first Boeing 707-420, named Gauri Shankar (registered VT-DJJ), was delivered. Jet services to New York City via London were inaugurated that same year on 14 May 1960. On 8 June 1962, the airline's name was officially truncated to Air India. On 11 June 1962, Air India became the world's first all-jet airline.
In 1971, the airline took delivery of its first Boeing 747-200B named Emperor Ashoka (registered VT-EBD). This coincided with the introduction of the 'Palace In The Sky' livery and branding. A feature of this livery is the paintwork around each aircraft window, in the cusped arch style of windows in Indian palaces. In 1986 Air India took delivery of the Airbus A310-300; the airline is the largest operator of this type in passenger service. In 1988, Air India took delivery of two Boeing 747-300Ms in mixed passenger-cargo configuration.
In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-400 named Konark (registered VT-ESM) made history by operating the first non-stop flight between New York City and Delhi. In 1994 the airline was registered as Air India Ltd. In 1996, the airline inaugurated service to its second US gateway at O'Hare International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at the renamed Chhatrapati Shivaji International Airport in Mumbai.
2000 – present
In 2000, Air India introduced services to Shanghai and to its third US gateway at Newark Liberty International Airport in Newark. In May 2004, Air India launched a wholly owned low cost airline called Air-India Express. Air India Express connecting cities in India with the Middle East, Southeast Asia and the Subcontinent. In 2004 Air India launched flights to its fourth US gateway at Los Angeles International Airport in Los Angeles (which has since been terminated) and expanded its international routes to include flights from Ahmedabad, Amritsar, Bangalore and Hyderabad.
On 1 December 2009, Air India introduced services to its fifth US gateway at Washington Dulles International Airport in Washington, D.C., accessed via a stopover at JFK Airport in New York City. This service has been terminated.
- Re-privatisation plans
In 2001, the Government of India put forward plans on privatizing Air India. One of the bids was by a consortium of Tata Group-Singapore Airlines. However the re-privatisation plans were shelved after Singapore Airlines pulled out and the global economy slumped.
- Merger with Indian Airlines
In 2007, the Government of India announced that Air India would be merged with Indian Airlines. As part of the merger process, a new company called the National Aviation Company of India Limited (NACIL) was established, into which both Air India (along with Air India Express) and Indian Airlines (along with Alliance Air) will be merged.
On 27 February 2011, Air India and Indian Airlines merged along with their subsidiaries to form Air India Limited.
- Financial crisis
Around 2006-2007, the airlines began showing signs of financial distress. The combined losses for Air India and Indian Airlines in 2006-07 were 770 crores ( 7.7 billion). After the merger of the airlines, this went up to 7,200 crores ( 72 billion) by March 2009. This was followed by restructuring plans which are still in progress. In July 2009, SBI Capital Markets was appointed to prepare a road map for the recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747-300M in March 2009 for $18.75 million to survive the financial crunch.
As of March 2011, Air India has accumulated a debt of Rs. 42,570 crore (approximately $10 billion) and an operating loss of Rs. 22,000 crore, and is seeking Rs. 42,920 crore from the government. For the past three months (June, July, August 2011), the carrier has been missing salary payments and interest payments and Moody's Investor Service has warned that missing payments by Air India to creditors, such as the State Bank of India, will negatively affect the credit ratings of those banks. A report by the Comptroller and Auditor General (CAG) blamed the decision to buy 111 new planes as one of the major causes of the debt troubles in Air India; in addition it blamed on the ill timed merger with Indian Airlines as well,.
Due to high fuel and loan costs, Indian government has already pumped 32 billion rupees into Air India since April 2009 and in March 2012 government bailed out Air India Ltd. with a 67.5 billion ruppes ($1.4 billion) which the amount almost double of the federal government has spent on new hospitals over the past three years. Air India's corporate headquarters is located at the Air India Building at Nariman Point in South Mumbai. The airline moved there in 1970. The Air India Building also serves as a regional office for Indian. As of 8 May 2012 the carrier invited offers from banks to raise up $ 800 million via external commercial borrowing and bridge financing. This was stated in the documents put up on the carrier's website.
- Delhi Hub
On 1 March 2009, Air India had made Frankfurt Airport at Frankfurt am Main as its international hub for onward connections to United States from India; however, the airline shut down the Frankfurt hub on 30 October 2010. However on 14 July 2010, Air India chief, Arvind Jadhav announced their intention to make the new terminal 3 at Delhi's Indira Gandhi International Airport the hub for international and domestic operations with the plans of starting new direct flights to Chicago and Toronto and also taking almost all international long haul flights away from its former Primary hub at Mumbai's Chhatrapati Shivaji International Airport due to lack of space. This would also provide greater convenience for transit passengers who before had to transfer between the international and domestic terminals which were located on completely different sides of the airport. They will now be able to catch their connecting flights within the same terminal.
- Return to profitability plans
The new Chairman and Managing director wants to change the order of some of the 111 planes ordered in 2006 to get narrow-body aircraft instead of the wide-body aircraft. On May 4, 2012, the airline was fined $80,000 by the U.S Transportation Department for failing to post customer service and tarmac delay contingency plans on its website and adequately inform passengers about its optional fees. On May 8, 2012 about 100 pilots went on medical leave as a mark of protest while their talks with the management were still on. Later, the same day it sacked ten agitating pilots and de-recognized their union after 160 pilots failed to join duty by the given deadline. On the 15th of May, the Union Civil Aviation Minister Ajit Singh stated that the Government was giving Air India one last chance and that it must perform in order to qualify for a bailout. On May 26, 2012 Aviation minister Ajit Singh announced that he would go ahead and hire new pilots if the strike did not end soon. While, AI management gave an assurance to Delhi High Court that it would look into the hardships of the pilots sympathetically,the striking pilots have decided to end the 58 day old strike immediately. Due to pilots' strike Air India suffered a loss of 500 crore (US$94.5 million) in 45 days. Eventually, following the intervention of the Delhi High Court, the pilots called off their 58 day strike on 4 July 2012.
Criticism and controversy
Air India today still remains as a state-owned company through Air India Limited. However, government ownership of the airline has subsequently led to multiple problems, such as enormous market share losses, declining profits, and escalating labor disputes. Historically, there have been numerous attempts to privatise Air India in hopes of a better future, but government interference has since prevented this goal from being achieved. Furthermore, it is also believed that mismanagement and corruption have impacted Air India's financial performance.
A major complaint about Air India was its negative overall brand image and reputation for poor customer service, and reviews about rude staff.
In December 2007, Star Alliance invited Air India in an effort to expand its presence in the Indian subcontinent. However, issues with technology and software upgrades and the aftermath of its merger with Indian Airlines have delayed its entry into the alliance for roughly three and a half years. When the final deadline for joining came in July 2011, Air India's application was suspended, and was told it failed to meet the minimum criteria to join. In response, many of Air India's officials complained to Star Alliance about the suspension of its application, claiming that they already met all of the requirements. But in October of that same year, talks between Air India and Star Alliance have resumed.
Corporate affairs and identity
Air India has three subsidiaries. Together Air India, Air India Cargo, Air India Express and Air India Regional form the Air India Limited.
The company's head office is in the Air India Building in Nariman Point, Mumbai. The registered office is in the Airlines House in New Delhi.
- Air India Cargo
In 1954, Air India Cargo started its freighter operations with a Douglas DC-3 Dakota aircraft, giving Air India the distinction of being the first Asian airline to operate freighters. The airline operates cargo flights to many destinations. The airline also has ground truck-transportation arrangements on select destinations.
A member of IATA, Air India carries all types of cargo including dangerous goods (hazardous materials) and live animals, provided such shipments are tendered according to IATA Dangerous Goods Regulations and IATA Live Animals Regulations.
At the warehouse in Mumbai, Air India has developed a system of inventory management for cargo handling of import/export functions. This takes care of the entire management of cargo, supports Electronic Data Interface (EDI) messages with Indian Customs and replaces to a great extent existing paper correspondence between Customs, Airlines, and the custodians. This also replaces manual handling and binning of cargo at the warehouse in Mumbai by Air India.
- Air India Express
Air India Express is the airline's low-cost subsidiary which was established in 2005 during the aviation boom in India. It operates scheduled passenger services primarily to the Persian Gulf and South East Asia. Air India Express is currently the only airline in Air India Limited which posts profits. It operates a fleet of Next Generation Boeing 737-800 aircraft.Cochin International Airport is the main hub of the airline from which it has connections to almost all the Gulf countries.
- Air India Regional
Air India Regional (formerly known as Alliance Air) serves mainly on regional routes. Its main hub is Delhi's Indira Gandhi International Airport.
- 1970–2007 livery
Air India's livery was mostly painted in red and white colours. The bottoms of the aircraft remain metal and unpainted but the upper portion is given a white background along with the airline's name written in red. The name is in Hindi on one side and in English on the other. The painted on red palace style carvings on the outside of the windows refer to their slogan "your palace in the sky" which is written on the back of the aircraft. Near the noses of Air India aircraft, the air plane is given a name. Most planes are named after powerful Indian kings or landmarks. Finally, the tail is mostly red with again, the carrier's name written in Hindi on one side and English on the other.
In 1989, to supplement its "Flying Palace" livery, Air India introduced a new livery that was mostly white with a golden spinning wheel (as seen on the flag of India) on a red tail. Only applied to around a half of Air India's fleet, the new livery did not succeed, as the Indian flying public complained about the phasing out of the classic colours. The livery was dropped after two years and the old scheme was returned.
- Pre-merger livery
On 15 May 2007, Air India refreshed its livery, making the Rajasthani arches along the windows slightly smaller, extending a stylised cheatline from the vertical tail of the aircraft to the nose, and painting a small portion of the underbelly red. Additionally, engine nacelles are now deep red, and a gold-coloured version of the airline's stylized Konark trademark now adorns both the vertical tail and engine nacelles.
- Post-merger livery
On 22 May 2007, Air India and Indian unveiled their new livery. The logo of the new airline is a Flying Swan with the Konark Chakra placed inside it. The Flying Swan has been morphed from Air India's characteristic logo, 'The Centaur' whereas the 'Konark Chakra' is reminiscent of Indian's logo.
The new logo features prominently on the tail of the aircraft. Individually the Konark Chakra also features on all the engines of the aircraft. The choice of colours namely red for "Flying Swan" and orange for "Konark Chakra" are meant to signify vigour and advancement. Further the colours also have a strong association with two carriers thereby retaining the earlier imagery of traditional hospitality and service.
While the aircraft is ivory in colour, the base retains the red streak of Air India. Running parallel to each other is the Orange and Red speed lines from front door to the rear door, subtly signifying the individual identities merged into one. The brand name 'Air India' runs across the tail of the aircraft in hindi.
Air India serves 49 domestic destinations and 26 international destinations in 19 countries across Asia, Europe and North America.
- Short-haul routes
Air India's short-haul routes mainly include domestic cities and cities in South East Asia and South West Asia. For short-haul routes Airbus A320 family are used.
- Long-haul routes
The airline has long-haul destinations in East Asia, Europe and North America which are served using Boeing 777-200LR and -300ER aircraft.
Air India has codesharing agreements with the following airlines at August 2011:
* SkyTeam member
^^ Star Alliance members
- Fleet info
The Boeing customer code for Air India is 37, meaning a model name of, for example, a 747-437 (an Air India 747-400). As of May 2010, the average age of the Air India fleet is 9.5 years.
- New aircraft orders
- On 11 January 2006, Air India announced an order for 68 jets - 8 Boeing 777-200LR Worldliners, 15 Boeing 777-300ER,18 Boeing 737-800 and 27 Boeing 787-8 Dreamliners.But Air India has cancelled the order for 3 Boeing 777-300ER bringing the total order down to 20.
- The airline received its first Boeing 777-200LR aircraft on 26 July 2007 and Boeing 777-300ER on 10 October 2007.
- Air India received its first Boeing 787 dreamliner aircraft on 6 September 2012 and it will officially enter service on 19 September 2012. All remaining aircraft are expected to be delivered by 2016.
Boeing 787 Dreamliner successfully completes its first test flight. The first of the 27 Boeing 787 Dreamliners ordered is ready and waiting for more than a month and a half at Boeing's Everett factory in Seattle, as of June 2012. The aircraft delivery though already three years behind schedule has been put off at the last minute due to a dispute over settlement of compensation amount for this delay with the Boeing. The compensation amount is to be approved by the Cabinet Committee on Economic Affairs. The committee is without its head since resignation of Pranab Mukherjee.
Frequent flyer programme
Flying Returns is Air India's frequent flyer programme. The programme is also shared by all other Air India Limited carriers.
The Maharaja Lounge (English: "Emperor's Lounge") is offered to First and Business class passengers. Air India shares lounges with other international airlines at international airports that do not have a Maharaja Lounge available. There are six  Maharaja Lounges, one at each of the six major destinations of Air India:
- Bengaluru International Airport (Bangalore)
- Chhatrapati Shivaji International Airport (Mumbai)
- Indira Gandhi International Airport (Delhi)
- Rajiv Gandhi International Airport (Hyderabad)
Air India's Boeing 777-200LR/-300ER as well as some refurbished Boeing 747-400 aircraft use the Thales TopSeries IFE systems for on board in-flight entertainment. Airbus A310s do not have personal LCD screens. Airbus A330s have widescreen displays in Business and Economy classes but no personal IFEs.
Awards and recognitions
- Preferred International Airline award for travel and hospitality from Awaz Consumer Awards 2006 
- Best International West Bound Airline out of India for three successive years by Galileo Express TravelWorld Award
- Best Corporate Social Responsibility Initiative. by Galileo Express TravelWorld Award 
- Best Short-Haul International Airline by Galileo Express TravelWorld Award 2008
- The Mercury Award for the years 1994 and 2003, from the International Flight Catering Association, for finest in-flight catering services.
- Amity Corporate Excellence Award instituted by the Amity International Business School, Noida, Uttar Pradesh to honour Corporates with distinct vision, innovation, competitiveness and sustenance.
- Reader's Digest Trusted Brand Award
- Dun and Bradstreet Award(D&B)- first in terms of revenue out of the top airline companies out of India
- Best South Asian Airline award by readers of TTG Asia, TTG China, TTG Mice and TTG-BT Mice China, all renowned Mice and business travel publications.
- Cargo Airline of the Year at the 26th Cargo Airline of the Year Awards
- The airline entered the Guinness Book of World Records for the most people evacuated by a civil airliner. Over 111,000 people were evacuated from Amman to Mumbai – a distance of 4,117 km, by operating 488 flights in association with Indian, from 13 August to 11 October 1990 – lasting 59 days. The operation was carried out during Persian Gulf War in 1990 to evacuate Indian expatriates from Kuwait and Iraq.
- The Montreal Protocol Public Awareness Award was awarded to Air India by the United Nations for environmental protection, especially in the ozone layer.
- World's first all-jet airline- June 1962
- World's largest operator of Airbus A310-300
- Air India's security department became the first aviation security organisation in the world to acquire ISO 9002 certification (31 January 2001).
- Air India's Department of Engineering has obtained the ISO 9002 for its Engineering facilities for meeting international standards.
- Fifth airline in the world to receive the Boeing 787
Accidents and incidents
Ten Air India flights have fatally crashed, including those due to terrorist attacks. Air India has a record of 6.82 fatal events per million flights.
- On 3 November 1950 Air India Flight 245 Malabar Princess a Lockheed L-749 Constellation (registered VT-CQP) carrying 48 people (40 passengers and 8 crew), flying on the Bombay-Cairo-Geneva-London route, crashed on Mont Blanc, France, killing all on board.
- On 11 April 1955 Kashmir Princess a Lockheed L-749A Constellation registered (VT-DEP) carrying 19 people (11 passengers and 8 crew) was bombed in midair, killing 16 of the 19 on board.
- On 19 July 1959 Rani of Aera a Lockheed L-1049G Super Constellation (registered VT-DIN) carrying 46 people (39 passengers and 7 crew) approached Santacruz Airport in conditions of poor visibility due to rain. The captain was using an altimeter with the barometric pressure set at 29.92". An overshoot was delayed and the aircraft crashed and suffered damage beyond repair. There were no fatalities.
- On 24 January 1966 Air India Flight 101 Kanchenjunga a Boeing 707-420 (registered VT-DMN) carrying 117 people (106 passengers and 11 crew) crashed on Mont Blanc, France, on the border between France and Italy, killing all on board. Among the dead was the noted Indian scientist, Homi J. Bhabha.
- On 1 January 1978 Air India Flight 855 Emperor Ashoka a Boeing 747-237B (registered VT-EBD) crashed into the Arabian Sea after takeoff from Sahar International Airport (now Chhatrapati Shivaji International Airport) in Mumbai, killing all on board (213 persons; 190 passengers, 23 crew).
- On 21 June 1982 Air India Flight 403 Gouri Shankar a Boeing 707-420 (registered VT-DJJ) carrying 99 passengers and 12 crew from Kuala Lumpur International Airport via Madras (now Chennai) crashed at Sahar International Airport after a heavy landing during a rainstorm. The fuselage exploded after starting a late go-around. Two crew members and 15 passengers were killed.
- On 23 June 1985 Air India Flight 182 Emperor Kanishka a Boeing 747-237B (registered VT-EFO) was blown up in mid-air, mid-flight by a suitcase-bomb planted by Babbar Khalsa Terrorists allegedly as revenge for the Indian Government's operation on the Golden Temple on June 1984. The flight was on the first leg on its Montreal-London-Delhi-Bombay flight when it exploded off the coast of Cork, Ireland. The plane crashed into the Atlantic Ocean. All 307 passengers and 22 crew on board died. After this incident Air India suspended all services to Montreal.
- On 7 May 1990 Air India Flight 132 Emperor Vikramaditya a Boeing 747-237B (registered VT-EBO) flying on the London-Delhi-Bombay route and carrying 215 people (195 passengers and 20 crew) touched down at Delhi's Indira Gandhi International Airport after a flight from London's Heathrow Airport. On application of reverse thrust, a failure of the no. 1 engine pylon to wing attachment caused this engine to tilt nose down. Hot exhaustion gases caused a fire on the left wing. There were no fatalities but the aircraft was damaged beyond repair and written off.
- Air India Limited
- Indian (airline)
- Air India Regional
- Air India Air Transport Services
- Air India One
- ^ Air India plans major hub in Dubai
- ^ Air India slips to 4th in market share
- ^ Maharaja in chains, Business Today
- ^ Merger pain, Frontline
- ^ Air India market share slips to fifth slot, Economic Times
- ^ Spice, IndiGo close in on Jet, Air India market share, Economic Times
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- ^ "India privatisation plans near 'collapse'". BBC News. 3 September 2001. Retrieved 23 April 2010.
- ^ 16 Jul 2009, 06.10AM IST, Manju V,TNN (2009-07-16). "What sent Air India crashing?". Economictimes.indiatimes.com. Retrieved 2010-08-30.
- ^ "Air India restructuring plans being readied". Chennai, India: Hindu.com. 2009-07-09. Retrieved 2010-08-30.
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- ^ "AI sells 4 aircraft in Mar to tackle financial crunch". Financialexpress.com. 2009-07-29. Retrieved 2010-08-30.
- ^ a b Air India's recurring default 'credit negative' for its banks Mint-Wall Street Journal, 9 August 2011
- ^ State Bank of India Credit Rating - Moody's
- ^ Air India aircraft acquisition was necessary: Patel, Malayala Manorama, 8 September 2011
- ^ Choudhury, Santanu (8 September 2011). "Auditor Slams Air India Plane Orders". The Wall Street Journal.
- ^ Sundaram, Karthikeyan; Narayan, Adi (March 14, 2012). "Air India Aid Dwarfing Hospital Budget Adds to Kingfisher Pain". Bloomberg.
- ^ Reuters (8 May 2012). "Air India seeks proposals to raise up to $800 million in debt". Economic Times. Retrieved 8 May 2012.
- ^ "Air India to use Terminal-3 as hub of operations - NDTV Profit". Beta.profit.ndtv.com. 2010-07-14. Archived from the original on 18 July 2010. Retrieved 2010-08-12.
- ^ "All The King's Men". Businessworld.in. 2010-05-08. Retrieved 2010-08-12.
- ^ "$80,000 Fine Slapped on Air India by US". Outlook. May 4, 2012.
- ^ "Join work by 6 pm or face action, AI tells striking pilots". Hindustan Times. 8 May 2012.
- ^ PTI (8 May 2012). "Clipped wings: Air India sacks 10 pilots, derecognises union". Hindustan Times. Retrieved 8 May 2012.
- ^ "Air India needs to perform to get bailout package: Ajit Singh". New Delhi: IBN Live. 2012-05-15. Retrieved 15 May 2012.
- ^ "Agitating Air India pilots promise HC to call off strike". 3 July 2012.
- ^ "Can hire new pilots for Air India: Ajit Singh". IBNLive. 26 May 2012.
- ^ "Pilots' strike: Air India loses Rs 500cr, extends contingency plan till July". 19 June 2012.
- ^ Reuters (4 July 2012). "Air India pilots call off two month strike". Reuters. Retrieved 4 July 2012.
- ^ Timmons, Heather (25 May 2011). "Criticism of State-Owned Air India Grows". The New York Times. Retrieved 20 May 2012.
- ^ Timmons, Heather (1 August 2011). "Star Alliance Puts Air India on an Indefinite Standby". The New York Times. Retrieved 21 May 2012.
- ^ "Management." Air India. Retrieved on 22 February 2012. "Registered Office Air India Ltd. Airlines House, 113, Gurudwara Rakabganj Road, New Delhi 110 001." and "Headquarters Air India Building, Nariman Point, Mumbai - 400 021."
- ^ World Wide Codeshare list
- ^ "Flying Returns - Code Share Partners". Air India. Retrieved 8 August 2010.
- ^ "AirIndia - Code-Share Partners". Home.airindia.in. Retrieved 2010-08-30.
- ^ Reuters – Thu, Sep 6, 2012 4:52 PM EDT (2012-09-06). "Air India takes delivery of its first Boeing 787 Dreamliner - Yahoo! Finance". Finance.yahoo.com. Retrieved 2012-09-13.
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- ^ Business Standard (2012-07-01). "All 27 Dreamliners to be delivered by 2016". Business-standard.com. Retrieved 2012-09-13.
- ^ "First test flight of Dreamliner for Air India successful". Retrieved 24 May 2012.
- ^ "Dressed-up Dreamliners have nowhere to fly". 21 June 2012.
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- ^ Flying Returns - Maharajah Club
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