Ad Here  
October
November
December
January
February
March
 
 
Streamlining mandatory third party cover Editor's Says Making ‘my Amaravati’... Welcome changes that testify to Jayalalithaa’s return to health Infrastructure funding – lessons learnt Road development slows down Plummeting profits of PSBs More Shakti to resource mobilisation... No Maha Koottani in TN... Not just in-laws (and outlaws); they’ve renowned academics at the helm! Polls and promises Shale gas and its shallow future TELANGANA at last…BUT The Ports’ Pasha expands into Tamil Nadu Delhi is distant An inexplicable neglect R Sridhar steps down as CEO of Shriram Capital CSR and CMI: promise of another Srinivasan Ramanujan... The sea- saw battle continues... Sweeter prospects for sugar Shaming of Tamils by Tamil farmers at Delhi Of course, Gujarat is vibrant When Ratan Tata visited SRM Modi and the lady All eyes on Sankara Nethralaya S Ramanathan – a versatile musician, musicologist He saved millions from starvation... A glass full of corruption The power-full Hindujas Gay abandon in pricing An informal presentation - analytical, forward locking... Naidu will soon build a new Hyderabad For whom the MIDS bell tolls? TN-leverage strength of BHEL, NLC... Maximising the micro pricing … Funding the un-funded Wise Presidents No mega rail project for Tamil Nadu The why of tax incentives Align crops to agro climate endowments… PPP mode for upgrading Corporation Hospitals Poor quality of university VCs When the President was rendered homeless… Another Indian music maestro at the UN Inflation: are we emulating Argentina and Brazil? Music happens Robber barons everywhere Silver Years of Madras Musings EVM is tamper-proof Land reclamation from sea appears cheaper! Russi Mody – a tribute Multi-faceted Venkat Discoms deserve better… Rahman at CIC Welcome thrust on trade in Modi’s foreign visits... Wanted: a second airport for Chennai Tax agriculture S V Raju – a ‘good’ true liberal F C Kohli - his concerns all embracing MHC should not return to its old indisciplined ways Like Hinduism: many paths to reach God... WTO Meet: resolved to meet again A Grand Finale for SN’s MS centenary at the US… Tatas moving out of urea production... Tihar, Puzhal not different from Parappana Agrahara Welcome GST The Gulf aviation boom Rs.1600 crore paper board plant of TNPL The Swadeshi Trump Valli, they are more marginalised Delhi returns to BJP Colour-Chem’s colourful KRVS Scientists urged to take up farmer-oriented research TIAM turns a full cycle EEC at the National Media Centre Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Auto components surge… Cutting the nose to spite the face Medical costs hit the roof... The few handicaps... When TN politicians can emulate Kerala's Quality silica from Neyveli Dr C Rangarajan returns to Chennai Come elections, come advertisements... A welcome initiative by the judiciary Adapt Vajpayee dinner diplomacy Revive development banks... Demise of a media baron... Adharma of opposition politics The balancing act Pharma – overdose of copying Which side are you, Montek? B H Kothari - a tribute TN – agglomerate land holdings without alienating ownership The rise and rise of KCP Gas is the way forward ONGC at KG Basin L&T- the specialty of special purpose vehicles A professional at the helm of IRDA... Fortune 500 review Roaring Ro-Ro facility SoA @ 80 Why land prices zoom in TN? Solar thermal shines… Make standards certification mandatory... TN accounts for the largest recruits by the IT sector Delhi is distant… Strengthen the base... Tribute – M V Murugappan TGS- The king storyteller Editor's Notes Tough task taking states together Put expensive assets created to use... A C Muthiah – his munificent bequeaths to science Parliament in paralysis... Remembering Indira Sivasailam... L&T: focus on infrastructure and more infrastructure… More heat than light Solar, solar everywhere … When online building permits work…. CII projects higher growth… Airlines in India: cost and space Preserving for the future Kulandai was a giant Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated West Bengal: mindless malignancy GM Technology at last! More Shakthi to Das’ elbow How Air-India loses customs... The ‘Ayyo-yes’ is no more Nuclear power at the nucleus A think tank for Chennai Sri Lanka votes for change Alexa – Talking Wikipedia Contrarian cousins Things happen by accident and not by design... Insurance companies bleeding, yet no decision on increasing FDI limit! Tribute – UCAL Selvan… Recognition to role of NBFCs.... A friendly business group Poor representation for Kerala and TN in Cabinet Revving up the manufacturing sector Quality education through the PPP mode Should we change the official year? Waning interest in public discussions… Mu Sigma – is no more When nations steal growth from one another… Cleaning Ganga – relocate tanneries and install electric crematoria Return to king coal for urea... Boy, can you beat these? Reliance’s TV – 18 ready to launch Tamil News Channel The Jan Dhan bonanza An enemy’s enemy is a friend Noble nonagenarians... This scant respect for Law Tribute CIPET hqrs to stay at Guindy – for the present? IPL - no surprise this scam Building loyalty through the stomach A Grand Finale for SN’s MS centenary at the US… Why this malaise in medical education? Sweet news for TN sugar mills Online not in line with brick and mortar businesses... Naidu’s return augurs well for Seemandhra Telangana in top gear… Fortune for Indian Airlines Focus on quality of power - its only around 170-180V IAS invades NDDB... GNS - 100: our first subscriber New IT products of Ramco in the pipeline… He continues the focus on social amelioration The star of Spencers is no more There was flood of milk. Reason: no milk commissioner! Where a state respects its litterateurs… London, London Narayan Shanti and Sadhana through Music The rise and fall of Annamalai University Readers' Mail Small units prefers to remain small... Where is Rajaji? Tribute – Manikam Ramaswami Eternal support for capitalisation of PS banks Welcome focus on core competence Intellectual of rare qualities IPL type auction for VCs? Protest masters... Modi storms Silicon Valley Limit foreign borrowings to hi-tech, export potential projects... Odisha: spectacular win by Naveen Patnaik PC’s preference for professionals to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Measuring roof tops in terms of KW/MW The nuclear option China invests in India Mersal magnified Lalu’s envy, India’s pride Marketing expert Balagopal is no more …and of a popular trade leader Godspeed, Chief Minister JJ Permanent secretariat for TN GIM Haul over the coal Breaththrough in malaria control Muffled voices for merit… The brown list of Venkitaramanan Cement prices continue to rise… Don’t seem to feel the pulse… Whistle-Stop Tour of Raghuram Rajan Kudos to NDTV... Towards speedy justice Lesson from Chandrababu Naidu Build close rapport with business leaders Computation of GDP – conundrums continue No engine for this car Excel Generators provide the vital back-up Convulsions in The Hindu A yen for wastage… Bihar elections - the Rajaji formula worked Engineering seats go abegging Tatas moving out of urea production... Shipping woes of Chennai companies Diamond jubilee of Egmore Samskrt School Air Asia India will set new benchmarks for budget travel A rich pool of talent not utilised…. Secularism and anti-Hinduism Banning booze... Liberal imports idling indigenous capacities The ‘Jayanthi Tax.’ Paytm karo... Five star activism stalls development activity Fall in crude prices help in oil sector reform A more liberated TN… Moily’s bold thrust More tributes to GR A proud Madrasi Vibrant Gujarat CRS, a jewel among managers, is no more. For whom the bell tolls? Delhi Chalo... Padma Bhushan for A Ramakrishna Kinetic Karnataka When small is no larger beautiful.. Fuel for thought Increasing non co-operation of state leaders Bihar – Nitish Kumar adopts the Lalu model
 
How Air-India loses customs...

I have in the past mentioned the failure of the national carrier Air-India to derive the maximum benefit out of the boom in air travel. Post the 1990s the massive increase in traffic was initially grabbed by the European giants like Lufthansa and British Airways. Surprisingly, despite bulk of this traffic moving towards the US, large American airline companies have not tapped this business. They have been content to leave the huge potential to be exploited by their partners in the airline alliances like Star Alliance.

After 2000, synchronising with the improvement in technology to fly over long distances with bigger aircraft, countries in the Gulf region focused on the airline business. These countries created productive infrastructure on the ground and invested massively in sophisticated aircraft.  With vast areas of land available in these desert kingdoms, in quick time sophisticated ground facilities were created. In quick succession Emirates, based in Dubai, Etihad in Abu Dhabi, Gulf Air in Bahrain along with their older counterparts of Saudi Airlines and Kuwait Airlines, have been investing massively and winning handsome custom. With much lower airport landing and takeoff costs and with the ability to fly non-stop over long distances, these airlines have been able to earn a lot of custom from Indians travelling to the US, African and European countries and other destinations.

Mounting losses with the consequent inability to invest continuously in the acquisition of new aircraft in large numbers, Air-India has been missing out this boom. Many of the bilateral agreements with several nations have been benefiting its partners and not so much Air-India. The corporation is yet to come out of the effects of its merger with Indian Airlines, loading it with an enormous under-employed workforce, diversified aircraft and ineffective management with bureaucratic control. Its once huge market share within the country has suffered severe erosion. With the recent new policy that permits newer entrants in the business to fly overseas, this competition is bound to intensify further.

Despite the large custom from South India, Air-India doesn’t offer direct, non-stop flights to Europe/US. The passengers are ferried to Delhi/Mumbai for such direct flights entailing higher travel time.

The policy of continuous recapitalisation by the government has mostly gone to keep the airline afloat. A bold new plan to revamp the finances and infusing substantial fresh capital can still enable this Indian icon to regain some of its past glory.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com