Industrial Report on INDIAN AIRLINES Submitted in partial fulfillment of the requirement for the award of Bachelor of business administration (BBA) By AJAY SHARMA BHARATI VIDYAPEETH UNIVERSITY, SDE ACADEMIC STUDY CENTRE; BVIMR, NEW DELHI 2010 STUDENT DECLARATION I AJAY SHARMA, BBA student, BVU, SDE, Academic Study Center: BVIMR, New Delhi hereby declare and understand that the project on Industrial Exposure submitted by me titling “INDIAN AIRLINES” under the guidance of Miss NEHA in partial fulfillment for the award of any diploma/degree in any university elsewhere to the best of my knowledge and belief. Any material quoted from others sources has been duly acknowledged at appropriate places in the text. I am solely responsible for any duplication. AJAY SHARMA ACKNOWLEDGEMENT Project work is never the work of an individual. It is more a combination of ideas, suggestions, contribution and work involving many jobs. One of the most important part of writing a report is the opportunity to thank all those who have contributed to it. The list of expression of thanks, no matter how extensive, is always incomplete and inadequate. This acknowledgement is no exception. I want to express my sincere gratitude towards Miss NEHA who provided me all the expert guidance and invaluable suggestion. I would like to thank my classmates and all those who directly or indirectly helped me in one or the other way in the successful completion of the project. AJAY SHARMA CERTIFICATE To whom so ever it may concern This is to certify that the project on Industrial Exposure entitled “INDIAN AIRLINES” is an original piece of work done by “AJAY SHARMA” in the partial fulfillment of the requirement for the award of the degree of “BBA” from “BVU, SDE, Academic Study Centre: BVIMR, New Delhi”. To the best of my knowledge, data and information presented by her in the project has not been submitted earlier. Miss NEHA ( INTERNAL GUIDE ) CERTIFICATE To whom so ever it may concern This is to certify that the project on Industrial Exposure entitled “INDIAN AIRLINES” is an original piece of work done by “AJAY SHARMA” in the partial fulfillment of the requirement for the award of the degree of “BBA” from “BVU, SDE, Academic Study Centre: BVIMR, New Delhi”. To the best of my knowledge, data and information presented by her in the project has not been submitted earlier. Dr. SACHIN VERNEKAR ( DIRECTOR ) INDEX CHAPTER-1 INTRODUCTION o Introduction to INDIAN AIRLINES o History of Indian airlines o Nature of Business o Type and Ownership Pattern o Vision o Mission o Board of Directors o Registered office CHAPTER-2 MARKET ANALYSIS o Brand o Products o Product Mix o Product Line o Fleet Details o Netwrok o Competitors o Market share o Market Strategies CHAPTER-3 FINANCIAL ANALYSIS o Auditing company and auditors report o Financial; and physical performance o Balnce sheet o Profit and loss statement CHAPTER-4 ORGANIZATIONAL STRUCTURE o Organization structure o Organization chart o Recruitment section o Training o Training section o departments CHAPTER-5 SWOT ANALYSIS MY LEARNINGS FROM THE PROJECT BIBLIOGRAPHY CURRENT INDUSTRIAL SCENARIO The current growth rate in domestic and international travel exceeds 25%, the highest in the world. In the period April-September 2006, the total aircraft movements witnessed an increase of 29.6% year-on-year to 494.92 thousand aircraft movements, as compared to 318.89 thousand during April-September 2005. The Indian domestic market grew at almost 50% in the first half of 2006. On average, full service carriers are shedding a remarkable 1.5% of market share every month to low cost carriers FUTURE INDUSTRIAL SCENARIO The aviation industry is expected to grow at a compounded annual growth rate of 25% till 2010. Also, by 2010 Indian airports will be handling between 90 and 100 million passengers per year, as against the current 34 million passengers. It is expected that nearly 80% of this growth will be driven by the low cost carrier segment (LCC). By 2008, the LCCs would capture 65% of the direct on-line air ticket market from 61% in 2005. International Domestic Total No. in Percentage No. in Percentage No. in Percentage millions growth millions growth millions growth 1999- 13.29 2.90% 25.74 6.90% 39.04 5.5% 00 2000- 14 5.40% 28.01 8.80% 42.02 7.70% 01 2001- 13.63 (-)2.7% 26.36 (-) 5.9% 39.98 (-)4.9% 02 2002- 14.82 8.80% 28.9 9.60% 43.72 9.40% 03 2003- 16.65 12.30% 32.04 10.09% 48.69 11.40% 04 2004- 19.45 17.00% 40.1 25.00% 59.54 22.30% 05 2005- 22.36 15.10% 50.98 27.90% 73.34 23.70% 06 CHAPTER-1 INTRODUCTION INTRODUCTION TO INDIAN AIRLINES Indian Airlines was founded in 1953. Today Indian Airlines, together with its fully owned subsidiary Alliance Air, is one of the largest regional airline systems in Asia with a fleet of 62 aircraft(4 wide bodied Airbus A300s, 41 fly-by-wire Airbus A320s, 11 Boeing 737s, 2 Dornier D-228 aircraft and 4 ATR-42). It has many firsts to its credit, including introduction of the wide-bodied A300 aircraft on the domestic network, the fly-by-wire A320, Domestic Shuttle Service, Walk-in Flights and Flexi-fares. The airlines network spans from Kuwait in the west to Singapore in the East and covers 75 destinations - 57 within India and 20 abroad. The Indian Airlines international network covers Kuwait, Oman, UAE, Qatar and Bahrain in West Asia, Thailand, Singapore, Yangon and Malaysia in South East Asia and Pakistan, Nepal, Bangladesh, Myanmar, Sri Lanka and Maldives in the South Asian sub-continent. Indian Airlines is presently fully owned by the Government of India and has total staff strength of around 18562 employees. Its annual turnover, together with that of its subsidiary Alliance Air, is well over Rs.4000 crores (around US$ 1 billion). Indian Airlines flight operations centre around its four main hubs- the main metro cities of Delhi, Mumbai, Calcutta and Chennai. Together with its subsidiary Alliance Air, Indian Airlines carries a total of over 7.5 million passengers annually HISTORY OF THE COMPANY In 1953, a new dream took shape - to air link the vast South Asian 14subcontinent by a single, modern and efficient airline. The airline was Indian Airlines. As per Air corporations Act 1994, the entire undertaking of Indian Airlines was transferred to and vested in “Indian Airlines Limited”, with effect from 1.3.1994. Indian Airlines came into being with the enactment of the Air Corporations Act 1953 and was entrusted with the responsibility of providing air transportation within the country as well as to the neighboring countries. This national domestic airline came into being with the amalgation of the following eight private airlines: 1 Airways (India) Ltd. 2 Himalayan Aviation Ltd. 3 Kalinga Airways Ltd. 4 Bharat Airways Ltd. 5 Air India Ltd. 6 Air Services of India Ltd. 7 Deccan Airways Ltd. 8 Indian National Airways Ltd. At its birth in 1953, Indian Airlines had to absorb eight separate airlines with varying organizational structures, operations and administrative set ups, 99 aircrafts with headquarters and maintenance basis in 6 cities and a total of 7017 men working in 8 organizations. The task of molding these into one single organization with a common standard of operation and administration was indeed difficult. Not only that fixing uniform scale of pay and condition of services and at the time rationalizing the routes and ground organization, reducing cost and improving efficiency all round were other tasks to be performed. The job was tackled with remarkable confidence and ability and pushed through great determination. Now it has been transformed into a homogeneous and increasingly efficient organization. The management has been integrated streamlined and operational standards have been progressively raised. The airlines began its operation on 1st August, 1953. At the time of nationalization, Indian Airlines inherited a fleet of 99 aircraft consisting of various types of aircraft which were gradually replaced by Viscount, F27 and HS748. Nineteen hundred and sixty four (1964) was the beginning of the jet era in Indian Airlines when the Caravelle aircraft was inducted into the fleet. Between 1970 and 1982 Indian Airlines started inducting first batch of wide bodied Airbus A320 aircraft (19 aircraft) in June, 1989. Latest acquisition in IAL’s fleet, the Airbus A319, was inducted in December, 2005. Indian Airlines has been setting the standards for civil aviation in India since its inception in 1953. It has many firsts to its credit, including introduction of the wide bodied A300 aircraft on the domestic network, the fly-by-wire A320, domestic shuttle service, walk in flights and easy fares. Its unique logo emblazoned on the tails of all its aircraft has become synonymous with service, efficiency and reliability. The Airlines’ network spans from Kuwait in the west to Singapore in the West and covers 76 destinations - 58 within India and 18 abroad. The Indian Airlines international network covers Kuwait, Oman, UAE, Qatar and Bahrain in West Asia; Thailand, Singapore, Malaysia and Mayanmar in South East Asia and Pakistan, Afghanistan, Nepal, Bangladesh, Sri Lanka and Maldives in the South Asia sub-continent. Indian Airlines is presently fully owned by the Government of India and has total staff strength of around 19300 employees including that of Alliance Air. Its annual turnover, together with that of its subsidiary Alliance Air, is well over Rs.6000 crores (around US$ 1.4 billion). Indian Airlines flight operations centre on its four main hubs the main metro cities of Delhi, Mumbai, Calcutta and Chennai.