Air India vector logo
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About Air India
Air India is the flag carrier airline of India. It is part of the government owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft serving Asia, the United States, and Europe. Its corporate office is located at the Indian Airlines House, in the parliament street of New Delhi. Air India has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport. The airline formerly operated a hub at Frankfurt Airport which was terminated on account of high costs. However, another international hub is being planned at the Dubai International Airport.
Following economic losses in 2012, Air India has slipped to fourth place in the Indian domestic aviation sector from being the largest operator in the Indian subcontinent, behind low cost carriers like IndiGo, Spicejet, and its full service rival Jet Airways. Following its merger with Indian Airlines, Air India has faced multiple problems, including escalating financial losses, Between September 2007 and May 2011, Air India’s domestic market share declined from 19.2% to 14%, primarily because of stiff competition from private Indian carriers. In August 2011, Air India’s invitation to join Star Alliance was suspended as a result of 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 INR300 billion (US$5.2 billion) of subsidies. In order to raise funds for reconstruction, Air India decided to sell and lease back all its dreamliners.
Air India 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 labour disputes. Historically, there have been numerous attempts to privatize Air India in hopes of a better future, but political 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.