Company Profile

Air India Limited is the national flag carrier airline of India, flying a worldwide network of passenger and cargo services. Air India is state-owned, and administered as part of the National Aviation Company of India Limited - which was created in 2007 to facilitate Air India's merger with Indian Airlines. The main bases of operation of the airline are Mumbai's Chhatrapati Shivaji International Airport and Delhi's Indira Gandhi International Airport. Air India is the 16th largest airline in Asia, serving 28 destinations worldwide, and, with its affiliated carriers, serves over 100 cities. Air India has codeshare agreements with twelve other international airlines. In 2010, Air India is expected to join Star Alliance, the world's largest airline alliance

Founded

1932 (as Tata Airlines) Chhatrapati Shivaji International Airport (Primary Hub) Indira Gandhi International Airport (Secondary Hub) Chennai International Airport (Secondary Hub) Frankfurt Airport (International Hub) Ahmedabad Amritsar London

Focus cities

Frequent flyer program Member lounge Alliance Subsidiaries

Hubs Fleet size Destinations Parent company Company slogan Headquarters Key people

Flying Returns Maharaja Lounge Star Alliance (future) Air India Express Air India Cargo 28 (+ 40 Orders) excl.subsidiaries 25 excl.subsidiaries and code-shares NACIL "Your Palace in the Sky" Mumbai, India Arvind Jadhav, Chairman & Managing Director Amod Sharma, Director

Website: http://www.airindia.com/ Table: Company Details

History

July 1932 Air India was founded by J. R. D. Tata as Tata Airlines, a division of Tata Sons Ltd (now Tata Group). 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 former Royal Air Force pilot Nevill Vintcent. In 1932 Air India was based out of a hut with a palm thatched roof at Juhu Aerodrome and had 1 pilot and 2 apprentice mechanics along with 2 piston engined aircraft, one Puss Moth and one Leopard Moth aircraft. 29 July 1946 Tata Airlines became a public limited company 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. June 1948 a Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off from Bombay bound for London via Cairo and Geneva. This marked the airline's first long-haul international flight, soon followed by service in 1950 to Nairobi via Aden.

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). 1954 The airline took delivery of its first L-1049 Super Constellations and inaugurated services to Bangkok, Hong Kong, Tokyo and Singapore. 1960 Air India International entered the jet age 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. 1971 Tthe airline took delivery of its first Boeing 747-200B named Emperor Ashoka (registered VTEBD).

(Boeing 747-200B at Montral-Mirabel International Airport in 1983)

Early 1990s 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. 1999 The airline opened its dedicated Terminal 2-C at the renamed Chhatrapati Shivaji International Airport in Mumbai. In 2000 Air India introduced services to Shanghai and to its third US gateway at Newark Liberty International Airport in Newark In 2001 Air India was put up for sale by the then NDA government. 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 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.

In 2007

Merger with Indian Airlines

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.

(Old Air India Logo From 1940-2007)

Financial Problems faced by Air India.

Air India is working on plans to reduce its expenditure on employees by Rs 500 crore per annum, with a newly formed Committee re-examining wage and other agreements in consultation with the Unions. The cash-strapped airline's employee cost currently is over Rs 3,000 crore annually, a company spokesperson said, adding that the airline was now targetting a reduction in employee cost to the tune of Rs 500 crore per annum. At present, the merged carrier has around 31,000 employees. Unprecedented liquidity crunch, high oil prices, widespread economic gloom, declining passenger traffic, skills shortage, and overcapacity are squeezing the life out of India's state-run flagship airline.Air India has one of the highest number of employees per aircraft. Media reports say that Air India is losing Rs 14-15 crore every day due to declining passenger traffic and low airfares vis a vis the airline's costs.Airline industry observers say that Air India is the victim of mismanagement and extravagance that have pummelled the airline into the mouth of near-bankruptcy and disrepair. Experts say that management failure coupled with some political interference has been the root cause of the abysmal performance of the airline.Also, as cost pressures mount and labour productivity remains low, Air India is finding it difficult to compete with the private carriers. Even private airlines, despite their management skills, fewer employees per aircraft and low air fares are fighting for survival as global recession plunges the airline industry into gloom.

AIRCRAFT OF AIR INDIA

Aircraft type Operational Fleet Wide Body B777-200LR B777-300ER B747-400 A310-300 A330-200 Wide Body Total Narrow Body B737-800 (AIX) A320 A319 A321 CRJ-700 ATR42 Narrow Body Total Total Operational Fleet Freighters A310-300 % B737-200 Freighters Totali Note: * ** *** **** NACIL (A) NACIL (I) 3**** 6 9 0 0 0 3 6 9 NACIL (A) NACIL (I) NACIL (I) NACIL (I) NACIL (I) NACIL (I) 17 23*** 19 20 0 0 79 108 4 5 5 0 4 7 25 27 21 28 24 20 4 7 104 135 NACIL (A) NACIL (A) NACIL (A) NACIL (A) NACIL (I) 8 12 5* 4** 0 29 0 0 0 0 2 2 8 12 5 4 2 31 Owned Leased Total

Includes 3 under Sale & Lease Back. All under Sale & Lease Back. Includes 8 under Sale & Lease Back. and 11 more are under proposal for sale. Includes 2 under Sale & Lease Back. % Additional 1 A310 Freighter is Leased Out.

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 fifty eight jets - eight Boeing 777200LR Worldliners, twenty-three Boeing 777-300ER and twenty seven Boeing 787-8 Dreamliners The airlines received its first Boeing 777-200LR aircraft on 26 July 2007 and Boeing 777-300ER on 10 October 2007. In April 2010, the airline has orderd three Boeing 777-300Ers. Air India expects to get its first Boeing 787 Dreamliner by December 2011

Retired fleets of Air India

Airbus A300B4-203 Three new Airbus A300B4-203 were operated from 1982 until 2002, one other was leased during 1994. Boeing 707-420 Six different Rolls-Royce Conway 508 powered Boeing 707-420s entered service from 1960 for use on international routes. One aircraft VT-DMN was destroyed operating Air India Flight 101 and the others were retired and sold in the early 1980s. Boeing 707-320B Three new Boeing 707-320Bs were operated between 1964 until retired in 1988. Boeing 707-320C Two new Boeing 707-320Cs were operated between 1967 and 1987. Two other aircraft were leased, one between March 1976 and November 1977 from Sabena and one Ethiopian Airlines aircraft between December 1976 and April 1981. Boeing 747-200B Eleven new Boeing 747-200s were operated as the mainstay of the international fleet from 1971 replacing the Boeing 707, the last one was retired in 2003. The fleet was supplemented by a second-hand aircraft in 1987. Three were lost in accidents, VT-EBD destroyed operating Air India Flight 855 on 1 January 1978, VT-EBO - destroyed operating Air India Flight 132 on 7 May 1990, and VT-EFO which was destroyed on 23 June 1985 operating Air India Flight 182. Boeing 747-300M Two Boeing 747-300Ms were operated between 1988 and 2007.

Boeing 747-400M A Boeing 747-400M passenger/freighter variant (with a large cargo door) was operated between 2005 and 2008. Boeing 757-200 One Boeing 757-200 was leased from Golden International Airlines between 1 June and 1 October 2007. Boeing 767-300ER Three Boeing 767s were leased (one for EuroAtlantic Airways and two from Flyglobespan) during 2007 and 2008. Boeing 777-200ER Three Boeing 777-200ERs were used between 2004 and 2010. Ilyushin Il-62 One Ilyushin Il-62 was leased from Aeroflot in 1987. Lockheed L-749 Constellation Three Lockheed L-749 Constellations were operated, one (VT-CQP) was lost operating Air India Flight 245. Four Lockheed L-749A Constellation were operated, one crashed in the Pacific Ocean. L-1049C Super Constellation Two Lockheed L-1049C Super Constellations and three Lockheed L-1049E Super Constellations were operated. Five Lockheed L-1049G Super Constellations were operated from the 1950s. Lockheed L-1011 TriStar Two Lockheed Tristar 500s were leased from December 1995 until September 1996.

Air India Cargo Former Fleet Boeing 747-200 Two Boeing 747-200F were leased to operate cargo services between 1986 and 1988. McDonnell Douglas DC-8 Eleven different Douglas DC-8F have been leased to operate cargo services.

Indian Airlines Airbus A319-100

An erstwhile Indian Airlines Airbus A321-200

Boeing 747-400

Airbus A330-200

Boeing 777-200LR

Incorporation

Established in 1953 under Air Corporations Act Became Public Limited Company in 1994 Registered Office : New Delhi Head Office : Mumbai Authorized Capital : Rs 500.00 Crores Paid-up Capital : Rs 153.84 Crores Corporate Vision Vision To be among top five Asian airlines in terms of Yield, Profitability, Productivity, Size and Quality Mission Focus on customer satisfaction. Grow with emphasis on sustained profitability. Provide exciting and satisfying work environment to retain and develop employees committed to Corporate Vision. Focus on social responsibility environment & community. Objectives Achieve unit revenue, unit cost, profitability, productivity and service level targets, based on benchmarked parameters.

Our Values Safety First: Partnering with the worlds most renowned maintenance providers and complying with the with world airline operations. Low Fare, No Frills: Providing guests with the choice of customizing services without compromising on quality and services

 Streamline Operations: Making sure that processes are as simple as possible Lean Distribution System: Offering a wide and innovative range of distribution channels to make booking and travelling easier. Subsidiary Companies Air India has the following Subsidiary Companies. (a) Hotel Corporation of India. (b) Air India Charters Ltd. (c) Air India Air Transport Services Ltd. (d) Air India Engineering Services Ltd. (e) Airline Allied Services Limited (AASL) (f) Vayudoot Limited Subsidiary Companies HCI(Hotel Corporation of India Ltd). Centaur Hotels at Juhu, Mumbai Airport and Rajgir Sold. Centaur Hotel at Delhi, Chefair-New Delhi and Chefair-Mumbai.

AICL(Air India Charters Ltd) New Airline Air India Express set-up under AICL All AI Express operations carried out on B-737-800 with a current fleet strength of 12. AIATSL (Air India Air Transport Services Ltd) Incorporated in June 2003 Set up to undertake ground handling & other allied activities Being operationalized at all domestic airports AIESL (Air India Engineering Services Ltd) Incorporated to undertake engineering and other allied activities To be operationalized Airline Allied Services Limited (AASL)

Established in 1983, this company provides support services to Indian Airlines such as air
transport services and manage airplane purchase, lease and sale transactions

Vayudoot Limited Established on 20 January 1981 as a joint-venture between the two state-owned carriers, Indian Airlinesand Air India. The airline was originally conceived to serve the Northeastern region of India where the surface transport facilities were inadequate and surface routes were circuitous.

Board Of Directors
Mr Rohit Nandan Chairman and Managing Director, Air India Shri E. K. Bharat Bhushan Joint Secretary & Financial Advisor, Ministry of Civil Aviation Shri Prashant Narain Sukul Joint Secretary, Ministry of Civil Aviation Shri K. M. Unni SBU Head-MRO(Airframe) Shri Vipin K. Sharma SBU Head (Engg & Comp) & Alliance Air Shri F. H. Major Air Chief Marshal (Retd.) Shri Harsh Vardhan Neotia Chairman, Ambuja Realty Development Ltd. Mr M.A. Yusuffali Managing Director, Emke Group

Organisational Chart Of Air India Limited

Significance Of Air India Logo

The logo of the new airline is a red coloured flying swan with the `Konark Chakra' in orange, placed inside it. The flying swan had been morphed from Air India's characteristic logo, `The Centaur', whereas the `Konark Chakra' was reminiscent of Indian's logo.

The new logo would feature prominently on the tail of the aircraft. While the aircraft will be ivory in colour, the base will retain the red streak of Air India. Running parallel to each other will be 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' will run across the tail of the aircraft.

Air India Mascot: Maharaj

We call him a Maharajah for want of a better description. But his blood isn't blue. He may look like royalty, but he isn't royal.' These are the words of Bobby Kooka, the man who conceived the Maharajah. This now familiar lovable figure first made his appearance in Air India way back in 1946, when Bobby Kooka as Air India's Commercial Director and Umesh Rao, an artist with J.Walter Thompson Ltd., Mumbai, together created the Maharajah.

The Maharajah began merely as a rich Indian potentate, symbolizing graciousness and high living. And somewhere along the line his creators gave him a distinctive personality: his outsized moustache, the striped turban and his aquiline nose. What began as an attempt as a design for an inflight memo pad grew to take Air India's sales and promotional messages to millions of travellers across the world. Today, this naughty diminutive Maharajah of Air India has become a world figure. He can be a lover boy in Paris, a sumo wrestler in Tokyo, a pavement artist, a Red Indian, a monk... he can effortlessly flirt with the beauties of the world. And most importantly, he can get away with it all. Simply because he is the Maharajah! He has completed 56 years and become the most recognizable mascot the world over. His antics, his expressions, his puns have allowed Air India to promote its services with a unique panache and an unmatched sense of subtle humour. In fact he has won numerous national and international awards for Air India for humour and originality in publicity. And as with all great men, he too has had his critics. But the millions of travellers whose lives he has touched far outnumber them. In fact, to them, the Maharajah with his inimitable style, charm and wit is a very real person. He's almost like a friend to every Air India traveller. A friend who reaches out with warmth and hospitality, even to the farthest corners of the world.

Services
Frequent Flyer Programme Air India has a Frequent Flyer Programme branded "Flying Returns. Members of the Flying Returns Programme (FRP), the most attractive FRP for the Indian traveller, can accrue mileage points while flying on Air India, Lufthansa and flights of Air Indias code share partners, and redeem them for award tickets on Air India or Lufthansa. Through tie-ups with leading hospitality-associated organisations in India, members can earn additional mileage points to redeem their tickets faster. "Flying Returns" has a membership of nearly 6,00,000 in India, the Gulf, UK, USA, Canada and South-East Asia. Star Alliance With a quantum jump in product profile resulting from induction of new aircraft and consequent expansion of network, Air India will be all set to join the Star Alliance by middle of 2010. Star Alliance, is a leading global airline alliance of 21 top international carriers. Once Air India becomes a member, passengers will enjoy enormous benefits, including seamless transfers while travelling across the world, more frequent flyer mileage points, code-sharing leading to a wider choice of flights and access to lounge facilities worldwide. The Star Alliance network offers more than 17,000 daily flights to 916 destinations in 160 countries. Dining Dining aboard Air India is a gourmet experience. The airline offers a choice of menus to suit all types of palates - Indian and Continental. Apart from these, there is western nouvelle cuisine, an appetizing choice of Asian specialities, and even Japanese meals on the India-Japan route. Besides, if any passenger has a special food requirement, he can choose from any of the 23 special meals, details of which are also available on the website http://www.airindia.in. The meal preference can also be intimated through the travel agent while making reservation. The menus are constantly revamped and the wines carried on board live up to the food they complement! Meals are served to First Class passengers in bone china crockery. Alcoholic beverages are served complimentary in all classes.

Inflight Entertainment The selection of music on board Air India aircraft would be the envy of any radio station. Passengers can choose from Indian popular music, Indian Classical, Ghazals, Bollywood hits and from Western Classical, Pop, Jazz, Country and Nostalgia. A special channel for Regional songs has been compiled to suit all passengers coming from different regions. A Japanese channel is available for our Japanese passengers. Air India's video programmes include a choice of the most recent English and Hindi feature films. One-hour video magazine represents the finest in comedy, nature & wildlife, adventure, action and life style. There are special movies in Tamil

and Malayalam selected for passengers travelling from Thiruvananthapuram, Kochi, Kozhikode and Chennai to the Gulf and Singapore. Facilities on the Ground Besides the much-talked about and appreciated inflight service on board, ground facilities have also been upgraded. Air India's lounge for transit passengers at Mumbai Airport is equipped with shower facilities, specially designed slumberettes, Wi-Fi, a gymnasium and a business centre. First and Executive Class passengers can surf the net or send e-mail in the comfort of our business centre located in the Maharajah Lounge while waiting for their flight to depart. There is a lounge for unaccompanied minors as well. Air India has its own exclusive lounges at Delhi, London, Hong Kong and New York in addition to the one in Mumbai. At other international airports, Air India has tie-ups with other international airlines or local Airports Authorities for lounge facility. Speedy Message Service (SMS) Users of Indian mobile telephones travelling from Indian stations are requested to provide their mobile numbers at the time of making their reservations to enable us to inform you by SMS in case your flight out of India is rescheduled within four days prior to departure. First and Executive Class passengers departing from Mumbai and Delhi airports can tele-check-in. A separate entry has been created for First and Executive Class passengers travelling from Mumbai. Several changes have been introduced at Mumbai and Delhi airports with the intent of streamlining airport procedures and enhancing efficiency to make Economy Class passengers' experience, from check-in to boarding of aircraft, absolutely hassle-free. The measures include additional X-ray machines, floor walkers in check-in area, the formation of a telephone enquiry cell and more efficient communications between various sections of the airport. Advance Check-in Passengers can take advantage of the advance check-in facility that is available at the airport and city office for the convenience of all passengers (including First, Executive and Economy Classes) travelling from Mumbai to the US, the UK and Europe. While First and Executive Class passengers can then report to the airport with their hand baggage just 45 minutes prior to the departure of the flight, Economy Class passengers are required to check-in only 90 minutes before scheduled departure time. Premium lounges 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 five Maharaja Lounges, one at each of the five major destinations of Air India, which are as following: India

Bengaluru International Airport (Bangalore) Chhatrapati Shivaji International Airport (Mumbai) Indira Gandhi International Airport (Delhi) Rajiv Gandhi International Airport (Hyderabad)

International

London Heathrow Airport John F. Kennedy International Airport (New York)

Air India's Maharaja Lounge at New York City's John F. Kennedy International Airport Our Reach (Nationally)

Awards and Recognitions

Air India was conferred the Best West Bound Airline from India award at the Galileo Express Travel and Tourism awards 2005 function held in Mumbai on 7 December 2005. The Most preferred Brand Award in the international airlines category by CNBC AWAAZ, a leading Hindi business television channel, was presented to Air India at the AWAAZ consumer awards 2006 function held in New Delhi on 18 July 2006. Readers Digest Trusted Brand Gold Award was presented to Air India at a function held in Mumbai on 18 May 2006. 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. Air India has also decided to discontinue the 40% discount scheme for employees and their families for domestic travel more than once a year. According to an insider, over 3,000 Nacil executives are entitled to the discounted fares. The source added there could also be future curbs on international business travel. Menon is also considering a scheme whereby 1,000 non-operational staff could take a sabbatical of between two and five years. On January 1 this year, Air India had circulated a 25-point circular to senior officers on various cost-saving measures. They include payment of fuel reimbursement strictly through vouchers, abolition of childrens education allowance to officers posted abroad, reducing the cost of residential furnishing for EDs and GMs, and restricting foreign travel.

Present Market Share

Indian + Air India > 18.3% Kingfisher Airlines > 20.8% Jet Airways > 19 % Indigo > 15.4 % Spice Jet > 12.9% Others > 13.6%

Future Strategies of Air India

A Multi-pronged approach. Capacity & Network Expansion to increase market share & garner competitive strength. Achieve dominance in core markets (USA/UK/Gulf/SEA). Increase market access through strategic alliances. Product Up gradation: Deploy modern aircraft with state-of-art passenger amenities. Operate customer friendly schedules with increased network connectivity Operations Improvement to reduce unit costs through. Increased asset (aircraft & manpower) productivity. Out-sourcing/Hiving-off of non-core activities to subsidiaries. Technology up gradation. Benchmarking & adoption of Best Practices.

Product Upgradation. Customer Friendly Schedules Planned. High frequency services with standardized arrival/departures Network Connectivity. Plans to match global standards of customer service through benchmarking, training & adoption of new technologies. Improvements with New Aircraft Product Improvements. New/Fresh Interior State of the art Seats Better on time performance Other Benefits Better Aircraft utilization Lower Fuel Consumption LowerMaintenance Expenditure. Operations Improvement Increased manpower productivity Comprehensive HR Policy with focus on Motivation, Training & Development, Multiskilling, Scientific job description & objective performance appraisal Special dispensations obtained from DGCA Operating Crew Increased Flight Time Limits. Technology Upgradation IT Projects Revenue Management PROS implemented Ticketing Time-Limit software implemented

Strategic Relationships Strategic Alliance with Lufthansa (LH) Joint capacity plan till 2007. LH to provide AI commercially viable slots at Frankfurt Air India developing relationship with other Star Alliance partners United Airlines & Air Canada. Will continue existing code shares with existing 14 airline partners & pursue such relationships with other airlines. Becoming a full-fledged member of a global alliance in 2011 Staff costs constitutes nearly 19% of Air India's total cost. Many efforts were made to reduce the staff cost:

AirIndia Balance sheet

Crore) Mar ' 09 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress 24,329.40 18,654.56 1,838.05 760.12 2,365.95 2,891.75 145.00 63.35 145.00 5,668.13 153.84 -261.97 Mar ' 08

(Rs Mar ' 07 Mar ' 06 Mar ' 05

153.84 185.96

153.84 171.12

1,846.69 1,243.24 5,818.41 2,378.67

565.95 695.74

28,542.07 15,521.65 31,116.37 24,226.53

7,556.97 3,961.71 1,586.65

6,471.27 7,109.88 7,121.60 -

4,366.85 4,914.43 4,641.18 2,104.42 2,195.45 2,480.42 2,994.75 1,185.33 21.91

22,491.35 17,894.44 5,011.37 3,972.63

Mar ' 09 Investments 123.18

Mar ' 08 90.12

Mar ' 07 Mar ' 06 Mar ' 05 90.70 87.02 58.26

Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 122.42 43.03 89.36 47.07 90.05 36.78 1538.36 1538.36 8,746.02 5,255.55 3,490.47 7,478.95 5,209.61 2,269.34 4,386.48 3,164.77 2,116.88 2,019.38 2,670.86 3,090.82 2,367.10 493.91 -973.94 -

31,116.37 24,226.53

7,556.97 3,961.71 1,586.65

25,918.42 26,340.93 25,994.75 1450.00 1450.00 1538.36

AirIndia Profit loss account

Crore) Mar ' 09 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT 7,060.64 3,338.85 7,271.07 17,670.56 -4,446.04 254.86 -4,191.18 1,665.88 1,225.89 -7,082.95 6,252.51 3,224.50 7,615.59 17,092.60 -3,454.25 1,619.12 -1,835.13 701.30 761.66 -3,298.09 3,527.42 1,340.51 4,603.36 9,471.29 -1,032.43 780.39 -252.04 239.44 398.75 -890.23 5,067.63 1,244.37 462.12 1,085.50 7,859.62 974.09 235.40 1,209.49 1,027.77 406.19 1.44 -225.91 13,224.52 13,638.35 8,438.86 8,833.71 Mar ' 08 Mar ' 07 Mar ' 06

(Rs Mar ' 05

7,588.17

3,920.38 1,182.03 403.45 1,002.08 6,507.94 1,080.23 21.76 1,101.99 715.57 426.03 3.52 -43.13

Mar ' 09 Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings -1,641.54 -5,441.41 -106.85 -5,548.26 -7,774.42 -7,774.42

Mar ' 08 -1,071.93 -2,226.16 -2,226.16 -2,226.16 -2,226.16

Mar ' 07 -93.37 -796.86 348.93 -447.93 -353.98 -353.98

Mar ' 06 -2.51 -223.40 -9.97 248.31 14.94 94.05 94.05

Mar ' 05 -46.22 3.09 -30.10 123.37 96.36 96.36 15.38 1.57 79.41

AirIndia Cash flow

Crore) Mar ' 09 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year -7,188.63 -3,802.66 -6,654.30 10,702.42 55.14 1,084.50 1,139.64 Mar ' 08 3,298.09 -1,951.87 -6,672.70 8,707.18 -82.61 1,084.50 1,001.89 Mar ' 07 541.30 -1,872.30 -1,811.29 3,803.58 117.45 187.91 305.36

(Rs Mar ' 06 12.43 -1,011.33 -1,287.24 2,271.14 -43.85 231.76 187.91 Mar ' 05 50.14 385.22 -82.67 -245.38 44.48 187.28 231.76

Air India Annual Report in Brief

(Rs Crore) Mar ' 06 Sales Operating profit Interest Gross profit EPS (Rs) Annual results in details Mar ' 06 Other income Stock adjustment Raw material Power and fuel Employee expenses Excise Admin and selling expenses Research and development expenses Expenses capitalised 411.24 3,140.77 1,244.37 Mar ' 05 138.72 2,187.74 1,182.03 8,833.71 6.60 83.88 333.96 0.97 Mar ' 05 7,588.17 391.24 32.38 497.58 6.26

Mar ' 06 Other expenses Provisions made Depreciation Taxation Net profit / loss Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg.of non-prom. shares (Lacs) Agg.of non promotoHolding (%) OPM (%) GPM (%) NPM (%) 4,441.97 406.19 -2.51 14.94 84.66 153.84 0.07 3.61 0.16

Mar ' 05 3,827.16 426.03 -46.22 96.36 -15.00 -6.41 153.84 5.16 6.44 1.25

AirIndia Ratios
Mar ' 09 Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) -33.61 -42.88 -41.16 -31.27 -2,611.66 -25.32 -30.91 -14.59 -9.59 -38.29 -12.23 -16.95 -4.85 -4.31 -375.27 -290.73 -382.64 -298.09 -306.62 14.37 14.37 912.04 -153.53 -101.00 -153.53 -101.00 -238.22 400.91 400.91 940.58 -153.53 -51.80 -25.88 -29.12 -3.20 -67.11 -7.03 -7.03 548.56 -17.38 Mar ' 08 Mar ' 07

(Rs Crore) Mar ' 06 Mar ' 05

-14.52 11.98 0.97 27.47 63.32 22.09 22.09 574.23 11.74

0.20 28.12 6.26 34.19 1.00 70.22 21.12 21.12 493.26 10.78

11.02 6.42 0.16 2.03 -65.74

14.23 8.62 1.26 5.68 0.95

Mar ' 09 Reported return on net worth (%) Return on long term funds (%) Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio Coverage ratios 1.66 1.66 0.93 13.72 148.35 148.35 0.66 0.54 -2,662.95 -17.40

Mar ' 08 -38.29 -10.71

Mar ' 07 -8.61

Mar ' 06 4.39 29.49

Mar ' 05 29.65 65.88

3.17 3.17 23.99 0.73

-1.43 1.30

7.00 10.66 8.57 1.24

2.14 3.88 20.48 1.07

1.44 1.44 1.02 13.62

2.17 2.17 1.81 11.48

1.18 0.50 1.01 117.92

0.68 0.44 0.56 186.90

100.00 100.00

17.59 3.22 -448.54 96.09

Mar ' 09 Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) Component ratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed Long term assets / total Assets Bonus component in equity capital (%) 0.16 0.75 -2.52 -1.59

Mar ' 08 -2.62 -1.09

Mar ' 07 -1.05 0.79

Mar ' 06 19.66 1.18 1.41

Mar ' 05 2.92 1.54 1.73

0.13 0.74 -

0.11 0.54 -

5.23 0.52 -

5.31 0.54 -

Swot analysis of Air India.

Strengths of AIR INDIA Air India has been the largest air carrier in India in terms of traffic volume and company assets. It owns the most updated fleet and competent repairs and maintenance expertise. Its information systems are advanced and compatible with its operation and service. It has a good reputation in both international and domestic markets, quality service and the age-old Goodwill that has still kept it alive in the interests of the rescue operators. Has financial backing of the Government. Strong Brand Image Due to growth in tourism, there has been an increase in number of the international and domestic passengers. The estimated growth of domestic passenger segment is at 50% per annum and growth for international passenger segment is 25% Due to the rise in income levels, the disposable income is also higher which are expected to enhance the number of flyers.

Weaknesses of AIR INDIA Air India is operating across broad international and domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets. Low profitability and utilization of capacity. Established Competitors Inefficient usage of resources Less advertising Growing Competitor base and entry of Low-Cost Carriers (LCCs) The airlines high-cost structure and the compulsions of being a public sector unit are the reasons and it had been making a loss and shall continue to make losses for some more quarters.

Opportunities of AIR INDIA India airline industry is growing faster and will continue to grow as the GDP increases, and the trend is predicted to continue once the slowdown recedes. Very little fare difference between upper class railway and low cost airline Economic Growth Brand image of Air India is stronger for foreigners Tie-ups with large Corporate Worldwide deregulations make the skies more accessible; the route agreement is easier to be achieved. The number of foreign visitors and investors to India is increasing rapidly.

 Complementary industry like tourism will increase demand for airline service. The Civil Aviation Ministrys strong regulation and protection provides opportunities for consolidation and optimization. Customers are getting wealthier, tend to be less price-conscious and prefer to choose quality service over cost. Best time for introducing LCCs. Threats for AIR INDIA Air India faces imminent aggressive competition from world leading airlines and price wars triggered by domestic players. Younger & more efficient crew compared to Aging one of Air India. The Indian Railway Ministry has dramatically improved speed and services in their medium/long distant routes, attracting passengers away from air service, with prices almost at par with the low cost carriers There is a shortage of trained pilots, co-pilots and ground staff which is severely limiting growth prospects.

Bibiography
http://home.airindia.in/SBCMS/Webpages/Fleet-Details1.aspx?MID=196#

http://home.airindia.in/SBCMS/WebPages/Home.aspx http://en.wikipedia.org/wiki/Air_India http://business.rediff.com/slide-show/2009/jun/22/slide-show-1-why-air-india-is-in-trouble.htm