Essay About Air Indiaproblem Statement And Air India

Turnaround Strategy Air India
Turnaround strategy case- Air IndiaProblem Statement Being awarded with several national and international awards from consumer services to corporate social responsibility, Air India was considered among the best and most prestigious air line operators. It was once upon a time a first priority of customers and also their status symbol. However, in the recent times, the airline has an outstanding debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012 (Highlighted in the news clipping below). Air Indias current business is “not sustainable” as it is neither able to generate enough cash flow nor able to repay even the principal amount on its debt, the government has told a Parliamentary panel. Rajiv Bansal, the newly appointed CMD of Air India, is given 1 month time to come up with a plan in front of the board to make the company’s business model sustainable and profitable in a span of 5 years. Rajiv appoints you, Mr. Indranil Sharma, to identify the reasons of the continued losses since the merger with Indian Airlines and come up with a strategic plan to convert the loss-making business into a profitable one. In your plan, you are expected to cover one or multiple aspects of poor performance of Air India ranging from poor financial structure, rising costs, impact on revenues due to competition, macroeconomic and industry variables or any other identifiable reason. You may also look into the major decisions, strategies and deals over the past decade involving Air India (including any major M&A, Corporate governance etc.) and already attempted strategies by the Government to turnaround Air India’s fortunes.Submission details The solution document has to be in pdf format to a maximum of 2000 words (excluding exhibits if any) or in ppt format with maximum of 20 slides. The appendix given at the end or the information available on the internet can be used to make the turnaround strategy. The submission has to be made by 11thSeptember 2017 11:59:59 am at ……[email protected][pic 1]Appendix [pic 2][pic 3][pic 4]Source: