REASON OF BIGGEST ORDER OF AVIATION

BY AIR INDIA

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 TABLE OF CONTENTS

CHAPTER CONTENT PAGE

NUMBER NUMBER

1 INTRODUTIN TO TOPIC ‗

2 COMPANY PROFILE

3 ABOUT THE PROJECT

4 RESEARCH METHODOLOGY

5 DATA ANALYSIS AND FINDINGS

6 CONCLUSIONS

7 RECOMMENDATIONS

8 BIBLIOGRAPHY

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 INTRODUCTION

Air transport is the most modern, the quickest and the latest addition to the modes of
transport. Because of speed with which aero planes can fly, travel by air is becoming
increasingly popular. As far as the world trade is concerned it is still dominated by sea
transport because air transport is very expensive and is also unsuitable for carrying heavy,
bulky goods. However, transportation of high value light goods and perishable goods is
increasingly being done by air transport.

In 1929, Neville Vincent, a former RAF pilot came to India from Britain, joined TATA
Sons and made a survey of all possible air routes. He presented the scheme to Director of
TATA Sons. In Oct 1932 TATA Sons Ltd, which later become Air India International,
commenced weekly airmail services between Karachi and Madras via Allahabad and
Mumbai.

Later two more airlines came—The Indian National Airways came into existence in 1933
and Air Services of India into 1937. After the 2nd World War, the Government of India
announced a new policy for the Development of Air Transport Services. In the first two
years, it came into existence; the Government gave license to 11 companies to operate air
services in different regions.

At the time of independence there were 9 airlines operating with and beyond the frontiers
of the country carrying both air cargo and passengers. It was reduced to 8 with Orient
Airways shifting to Pakistan. These were:

 Airways India Ltd.

 Air Services India Ltd.
 Bharat Airways Ltd.
 Deccan Airways Ltd.
 Himalayan Aviation Ltd.
 Indian National Airways Ltd.
 Kalinga Airlines.

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Taking into consideration to deteriorating financial position of the conglomeration of
private airlines, the Govt. nationalized the Airlines Industry in 1953 through Air
Corporation Act 1953.

Nationalization resulted in creation of two companies—Indian Airlines Corporation

(operating domestic services and short range International services to adjacent countries)
& Air India International (operate for overseas services) & assets of all then existing
companies transferred to those companies.

Foreign airlines carrying international passenger traffic to and from India existed long
before Independence. Their operations are governed by bilateral agreements signed from
time to time between the Government of India and the governments of respective
countries. In 1980-81, the number of such airlines was 35. It rose to 49 in 1996-97.

The share of foreign airlines in India's scheduled international traffic has increased. In
1971, their share was 55.58 per cent which went up to 65 per cent and declined to 58 per
cent during 1972-75. It fell to 55.72 per cent in 1976 and further to 55.02 per cent in
1977. Between 1978 and 1990 it gradually increased and rose to 75.93 per cent. In 1996,
the share was nearly 72 per cent.

The act prohibited any other than two companies to operate any schedule air transport to
or across India. The repeal of Air Corporation Act from 1st March 1994 enabled private
operators to provide air transport services. Eight operators got the nod to commence
operation out of which only two have survived:

 Jet airways
 Sahara India
Aviation services in developed countries are categorized into three levels:
1. Trunk Routes- Which connect major city pairs
2. Regional Air Services - Which connect smaller towns, over shorter distances
with small aircraft.

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 3. Non-Scheduled Services - Which include air taxi, charters, corporate or private
aviation

In India unfortunately the regional and non-scheduled or Tier 2 and Tier 3 services are
almost nonexistent. Even though such services normally constitute a small percentage of
domestic air services, the importance of such services should not be under-estimated, as
general aviation forms the entry point for personnel to enter the industry and gain
grassroot experience.

In 1953 a new dream took shape – to air link the vast South Asian subcontinent by a
single, modern and efficient airline. The airline was Indian Airlines. Today, Indian
Airlines, together with its fully owned subsidiary Alliance Air, is one of the largest
regional Airlines system in Asia with a fleet of 56 aircrafts, 8 wide bodied Airbus A300s,
34 Fly-by-wire Airbus A320s, 11 Boeing 737s and 3 Dornier D-288 aircrafts.

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 and
Walk-in-Flights. Its unique orange and white logo emblazoned on the tails of all its
aircrafts is perhaps the most widely recognized Indian brand symbol that, over the years
has become synonymous with services, efficiency and reliability

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 MAJOR AIRLINE COMPANIES

AIRLINE COMMENCED OPERATIONS

Air India October 1932

Indian Airlines August 1953

Air-India Express April 2005

Air India Regional September 2007

Blue Dart Aviation May 1994

Club One Air August 2005

Deccan August 2003

Deccan Aviation December 1997

Go Air June 2004

Indigo Airlines August 2006

Jagson Airlines November 1991

Jet Airways May 1993

Jet Lite April 2007

Kingfisher Airlines May 2005

MDLR Airlines March 2007

Paramount Airways October 2005

Spice Jet May 2005

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 ABOUT AIR INDIA LIMILED

The Air India Limited is a company that was formed as National Aviation Company
of India Limited by the government of India to oversee the merger of Air India and
Indian. The company was renamed as Air India Limited on October 26, 2010. It was
incorporated under the Companies Act 1956 on 30 March 2007 and was owned by the
Government of India based at the Air India Building in Nariman Point, Mumbai. The
Company was created to facilitate the merger of the two main state-owned airlines in
India: Air India, with its subsidiary Air-India Express and Indian, together with its
subsidiary Alliance Air (now called Air India Regional).

The previous structure was:

 National Aviation Company of India Limited

o Air India
 Air India Express
 Air India Cargo
 Air India Charters Limited
 Air India Air Transport Services
o Indian
 Air India Regional (formerly Alliance Air)

Upon completion of the merger on 26 February 2011 there is now one primary airline,
Air India, with two subsidiary carriers providing regional and low-cost, point-to-point
services and a third subsidiary for cargo operations:

 Air India
o Air India Express
o Air India Regional
o Air India Cargo

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AIL carriers connect 93 destinations (60 domestic and 33 international) in 24 countries as
of February 2011.

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.

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AIR INDIA LOGO

―The logo of the new airline is a red colored 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 color, 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.

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NETWORK

Air India serves 9 domestic destinations and 16 international destinations in 10 countries.

Together with its subsidiaries the group connects 93 destinations worldwide in 24
countries across Africa, Asia, Europe and North America.

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 ABOUT THE PROJECT

As of my knowledge cutoff of September 2021, Air India had not recently introduced its
biggest order of aircraft. However, it is worth noting that Air India has a history of
placing large orders for new aircraft in the past.

In 2005, Air India placed an order for 68 aircraft from Boeing and Airbus, with a total
value of approximately $11 billion. This included orders for 27 Boeing 787 Dreamliners
and 23 Airbus A321s. In 2006, Air India also placed an order for 20 Boeing 737-800s,
with an option for 15 additional planes.

Additionally, in 2018, the Indian government approved the sale of Air India, including its
subsidiaries and debt, to a consortium led by the Tata Group. It is possible that the new
owners may choose to place new orders for aircraft in the future, but this information is
not yet available to me.

As of my current date of April 25, 2023, there is no new information about Air India's
plans to introduce its biggest order of aircraft. However, I can provide some context on
the airline's recent aircraft orders and fleet plans.

In 2019, Air India took delivery of its first Boeing 787-9 Dreamliner, part of an order for
27 of the aircraft. The airline also has orders for 19 Airbus A321neo aircraft and has been
considering placing additional orders for the A320neo family of aircraft.

In addition to these orders, Air India has been working on plans to simplify and
modernize its fleet. The airline has been seeking to reduce its fleet size and retire older,
less fuel-efficient aircraft, such as the Boeing 747 and 777. This strategy is aimed at
reducing costs and improving the airline's environmental footprint.

Air India has faced financial challenges in recent years, with the COVID-19 pandemic
further impacting its operations. It remains to be seen how these factors will impact the
airline's future fleet plans and whether it will introduce any new large-scale aircraft
orders.

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Impact On Indian Economics

Air India is a major player in the Indian aviation industry and has a significant impact on
the country's economy. The airline employs thousands of people directly and indirectly,
contributing to job creation and economic growth.

At the same time, Air India has also faced financial challenges in recent years, with the
airline posting losses for several years in a row. This has put a strain on the Indian
government, which owns a majority stake in the airline, and has required significant
financial support to keep the airline afloat.

The Indian government has been taking steps to address these challenges and improve the
airline's financial health. This includes efforts to sell a controlling stake in the airline to a
private investor, which would bring in additional capital and management expertise.

In terms of the broader impact on the Indian economy, the aviation industry is an
important driver of economic growth and development. Air transport plays a crucial role
in connecting businesses, people, and goods across the country and around the world. As
such, the success of Air India and other Indian airlines has important implications for the
overall health and growth of the Indian economy.

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 RESEARCH METHODOLOGY

Need and Significance of the study

Studying the reasons behind Air India's biggest aircraft order can have several important
implications and significance. Understanding Air India's growth strategy can help
researchers, stakeholders, and competitors better understand how Air India plans to
expand its operations and improve its market share. Evaluating the airline industry can
provide insights into the industry's current state and future prospects. Impact on the
economy: Air India's biggest aircraft order is likely to have significant economic impacts,
such as creating new jobs, increasing trade, and stimulating economic growth. Identifying
trends: Air India's biggest aircraft order can serve as an indicator of emerging trends in
the airline industry.

Policy implications: Air India's biggest aircraft order can have policy implications for
governments and regulatory bodies. In conclusion, studying the reasons behind Air
India's biggest aircraft order can provide valuable insights into the airline industry, the
economy, and policy implications. It can help stakeholders better understand the
dynamics of the industry and make informed decisions that can drive growth and
development.

SCOPE OF THE STUDY

This study mainly focuses on the employee satisfaction as well as performance appraisal
system in Air India. Employee satisfaction is different in different employees that may be
depends on their age, salary, attitude towards their job, etc. Employee satisfaction mainly
depends on 4 C‘s, that is commitment, culture, communication and compensation. It is
highly affecting the productivity of the organization also. A consistently high level of
employee motivation and commitment are the key factors in developing a positive
working environment in an organization. It is the same with the enquiry and evaluation of
the effectiveness and performance appraisal that is conducted. Further studies on how
effective the performance appraisal system in other departments are and comparisons will

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give greater insights and also show how P.A.S can be implemented more effective.
Performance appraisal evaluation provides the overview and solution of the process of
assessment of the employees, objectivity of the current appraisal system, relevance of the
existing appraisal system in identifying employee potential in holding higher
responsibilities, If provided with more time a study on the available concepts and peer
practice in different organizations can be conducted. They can be compared and
contrasted and the best can be inducted to be implemented. Based on this study we can
easily identify how much employees are satisfied in their job and performance appraisal
system followed in Air India. According to this the organization can improve their
working environment and appraisals.

OBJECTIVES

The objectives of the study for the reason for the biggest aircraft order by Air India could
be:

 To identify the key factors that led to Air India's decision to place the biggest
aircraft order in its history.
 To analyze the market conditions and competition in the aviation industry that
prompted Air India to make the order.
 To evaluate the potential benefits and risks associated with the order for Air India
and its stakeholders, including passengers, employees, shareholders, and
creditors.

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 METHODOLOGY

 The methodology involves descriptive research design. Data is collected from

both primary and secondary sources.
 The data so collected was subjected to analysis using the necessary tools that are
relevant and realistic.
 The nature of the data is both qualitative and quantitative.

Secondary data:

Secondary data that is already available and published. It could be internal and external
source of data.

Internal source: which originates from the specific field or area where research is
carried out e.g. published broachers, official reports etc.

External source: This originates outside the field of study like books, periodicals,
journals, newspapers and the Internet.

Data Collection
Secondary data has been used which is collected through

 Articles
 Reports
 Journals
 Magazines
 Newspapers and
 Internet.

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LIMITATIONS OF THE STUDY

 The data included in the project comprises of only secondary or historical data
collected from the company internal circulars, financial reports and historical
records.
 Suggestions and findings are relevant for the present study only.
 Non-availability of vital information, which the company feels is internal to
the organization.
 100% accuracy cannot be claimed.
 Report is made from secondary data only

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 DATA ANALYSIS AND FINDINGS

Objective 1: To identify the key factors that led to Air India's decision to place the
biggest aircraft order in its history.

Air India's decision to place the biggest aircraft order in its history was likely influenced
by several key factors. Here are some potential factors that may have played a role:

Expansion plans: Air India may have had plans to expand its operations, either
domestically or internationally, and required more aircraft to meet this demand. The new
aircraft order would have allowed the airline to increase its capacity and expand its route
network.

Modernization of fleet: Air India may have wanted to modernize its fleet to improve
efficiency, reduce costs, and improve customer experience. The new aircraft would have
been equipped with the latest technologies and amenities, making them more attractive to
passengers.

Replacement of aging aircraft: Air India's existing fleet may have been aging and
required replacement. The new aircraft order would have allowed the airline to retire
older, less efficient aircraft and replace them with newer, more fuel-efficient models.
Competitive pressures: Air India may have faced competitive pressures from other
airlines, both domestic and international. The new aircraft order would have allowed the
airline to compete more effectively by offering newer, more advanced aircraft to
customers.

Government support: Air India is a government-owned airline, and the decision to

place a large aircraft order may have been influenced by government policy or incentives.
The Indian government may have encouraged Air India to modernize its fleet and expand
its operations to support the country's economic growth.

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Cost savings: The new aircraft order may have been part of Air India's broader cost-
saving strategy. The airline may have negotiated favorable terms and prices for the new
aircraft, which could have helped to reduce its overall operating costs.

Overall, Air India's decision to place the biggest aircraft order in its history was likely
influenced by a combination of these factors. By investing in a new fleet, Air India may
have hoped to improve its competitiveness, reduce costs, and expand its operations to
meet growing demand.

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  To analyze the market conditions and competition in the aviation
industry that prompted Air India to make the order.
As mentioned earlier, the most recent major aircraft order by Air India was
in 2005, which included orders for 68 aircraft from Boeing and Airbus. At
that time, the Indian aviation industry was experiencing significant growth
and Air India was looking to expand its fleet to keep up with the demand.

The Indian aviation market has continued to grow since then, with passenger
traffic increasing steadily over the past decade. This growth has been driven
by a number of factors, including rising incomes, a growing middle class,
and increasing tourism and business travel.

Competition in the Indian aviation industry has also intensified in recent

years, with the entry of new low-cost carriers such as IndiGo, SpiceJet, and
GoAir. These airlines have disrupted the market with their low fares and
efficient operations, challenging the dominance of established players like
Air India.

To remain competitive in this changing market, Air India has been working
to modernize its fleet and improve its operations. The airline has placed
orders for new fuel-efficient aircraft, such as the Boeing 787 Dreamliner and
Airbus A321neo, which offer lower operating costs and improved passenger
comfort.

Air India has also been working to improve its customer service and
operational efficiency, with a focus on reducing costs and increasing
revenue. This includes efforts to streamline operations and cut costs, such as
by reducing staff and consolidating routes.

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Overall, the market conditions and competition in the Indian aviation
industry have prompted Air India to take a number of steps to improve its
operations and remain competitive. This includes investing in new aircraft
and technologies, improving its customer service, and cutting costs to
improve profitability.

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Objective 3: To evaluate the potential benefits and risks associated with the
order for Air India and its stakeholders, including passengers, employees,
shareholders, and creditors.

Potential benefits:

Improved passenger experience: The new aircraft ordered by Air India offer
modern features and improved comfort, which can enhance the overall passenger
experience and increase customer satisfaction.

Cost savings: The new aircraft are more fuel-efficient than older planes, which can
lead to significant cost savings for the airline over time. This can help Air India
reduce its operating expenses and improve profitability.

Increased capacity: The additional aircraft can allow Air India to expand its route
network and increase capacity on existing routes, which can help the airline attract
more passengers and generate more revenue.

Improved competitiveness: The new aircraft can help Air India compete more
effectively with other airlines in the Indian aviation market, particularly low-cost
carriers that have been gaining market share in recent years.

Potential risks:

Financial strain: The cost of purchasing new aircraft can put a strain on Air India's
finances, particularly if the airline is already facing financial challenges. This can
impact the ability of the airline to meet its financial obligations, including paying
its employees and creditors.

Integration challenges: Integrating new aircraft into the airline's fleet can be a
complex process, requiring significant resources and expertise. Any delays or
complications in this process can impact the airline's operations and revenue.

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Dependence on a single manufacturer: If Air India places a large order with a
single aircraft manufacturer, it can make the airline dependent on that
manufacturer for future purchases and maintenance. This can limit the airline's
options and bargaining power in the market.

Disruption to employees: The introduction of new aircraft can require changes to

the airline's operations and staffing requirements, which can disrupt the work of
employees and lead to job losses.

In conclusion, while the order for new aircraft can provide potential benefits to Air
India and its stakeholders, there are also potential risks associated with the
investment. It is important for the airline to carefully evaluate these factors and
ensure that the benefits of the investment outweigh the potential risks.

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Biggest order by Air India

As the largest order by Air India was made in 2005, data analysis of the order will
require historical data. Here is some data analysis of the 2005 order:

Size of the order: The 2005 order included 68 aircraft, split between Boeing and
Airbus. This was a significant investment for Air India, with a total cost of around
$11 billion.

Breakdown of the order: The breakdown of the order was as follows:

Boeing: 27 787 Dreamliners, 15 777-200LRs, and eight 777-300ERs.

Airbus: 43 A320 family aircraft, including 20 A319s, 19 A321s, and four A320s.

Timing of the order: The order was made at a time of significant growth in the
Indian aviation industry, with passenger traffic increasing steadily. The order was
also made ahead of the launch of Air India's low-cost subsidiary, Air India
Express, which was intended to capture a share of the growing budget airline
market.

Impact on Air India: The 2005 order was intended to modernize Air India's fleet
and improve its competitiveness in the market. However, the airline struggled to
integrate the new aircraft into its operations and faced financial challenges in the
years following the order.

Impact on the Indian aviation industry: The 2005 order was part of a broader trend
of investment and expansion in the Indian aviation industry, which saw the entry
of new players and the growth of existing airlines. However, the industry also
faced challenges, including rising fuel costs and intense competition.

In summary, the 2005 order by Air India was a significant investment in the
airline's future, aimed at improving its competitiveness and modernizing its fleet.
While the order had the potential to provide significant benefits to the airline and

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the Indian aviation industry as a whole, it also came with risks and challenges that
needed to be carefully managed.

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 MERGERS AND ACQUISITIONS

MERGERS
In business or economics a merger is a combination of two companies into one larger
company. Such actions are commonly voluntary and involve stock swap or cash payment
to the target. Stock swap is often used as it allows the shareholders of the two companies
to share the risk involved in the deal. A merger can resemble a takeover but result in a
new company name (often combining the names of the original companies) and in new
branding; in some cases, terming the combination a "merger" rather than an acquisition is
done purely for political or marketing reasons.

TYPES OF MERGERS
From the perception of business organizations, there is a whole host of different mergers.
However, from an economist point of view i.e. based on the relationship between the two
merging companies, mergers are classified into following:

 HORIZONTAL MERGER
Two companies that are in direct competition and share the same product lines and
markets i.e. it results in the consolidation of firms that are direct rivals.
 VERTICAL MERGER
A customer and company or a supplier and company i.e. merger of firms that have actual
or potential buyer-seller relationship.
 CONGLOMERATE MERGER
Generally a merger between companies which do not have any common business areas or
no common relationship of any kind. Such kind of merger may be broadly classified into
following:

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 1. PRODUCT-EXTENSION MERGER
Conglomerate mergers which involve companies selling different but related products in
the same market or sells non-competing products and use same marketing channels of
production process.

2. MARKET-EXTENSION MERGER
Conglomerate mergers wherein companies that sell the same products in different
markets/ geographic markets.
3. PURE CONGLOMERATE MERGER
Two companies which merge have no obvious relationship of any kind.

ACQUISITION

An acquisition, also known as a takeover, is the buying of one company (the ‗target‘) by
another. An acquisition may be Friendly or Hostile. In the former case, the companies
cooperate in negotiations; in the latter case, the takeover target is unwilling to be bought
or the target's board has no prior knowledge of the offer. Acquisition usually refers to a
purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will
acquire management control of a larger or longer established company and keep its name
for the combined entity. This is known as Reverse Takeover. Another type of
acquisition is Reverse Merger a deal that enables a private company to get publicly
listed in a short time period. A reverse merger occurs when a private company that has
strong prospects and is eager to raise financing buys a publicly listed shell company,
usually one with no business and limited assets. Achieving acquisition success has
proven to be very difficult, while various studies have showed that 50% of acquisitions
were unsuccessful. The acquisition process is very complex, with many dimensions
influencing its outcome. This model provides a good overview of all dimensions of the
acquisition process.

TYPES OF ACQUISITION

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  The buyer buys the shares, and therefore control, of the target company being
purchased. Ownership control of the company in turn conveys effective control
over the assets of the company, but since the company is acquired intact as a
going business, this form of transaction carries with it all of the liabilities accrued
by that business over its past and all of the risks that company faces in its
commercial environment.
 The buyer buys the assets of the target company. The cash the target receives
from the sell-off is paid back to its shareholders by dividend or through
liquidation. This type of transaction leaves the target company as an empty shell,
if the buyer buys out the entire assets. A buyer often structures the transaction as
an asset purchase to ‘Cherry-Pick’ the assets that it wants and leave out the
assets and liabilities that it does not. This can be particularly important where
foreseeable liabilities may include future, unquantified damage awards such as
those that could arise from litigation over defective products, employee benefits
or terminations, or environmental damage. A disadvantage of this structure is the
tax that many jurisdictions, particularly outside the United States, impose on
transfers of the individual assets, whereas stock transactions can frequently be
structured as like-kind exchanges or other arrangements that are tax-free or tax-
neutral, both to the buyer and to the seller's shareholders.
On a general analysis, it can be concluded that Horizontal mergers eliminate sellers and
hence reshape the market structure i.e. they have direct impact on seller concentration
whereas vertical and conglomerate mergers do not affect market structures e.g. the seller
concentration directly. They do not have anticompetitive consequences.
The circumstances and reasons for every merger are different and these circumstances
impact the way the deal is dealt, approached, managed and executed. However, the
success of mergers depends on how well the deal makers can integrate two companies
while maintaining day-to-day operations. Each deal has its own flips which are
influenced by various extraneous factors such as human capital component and the
leadership. Much of it depends on the company‘s leadership and the ability to retain
people who are key to the ongoing success of the company. It is important, that both the

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parties should be clear in their mind as to the motive of such acquisition i.e. there should
be censusad-idiom. Profits, intellectual property, costumer base are peripheral or central
to the acquiring company, the motive will determine the risk profile of such M&A.
Generally before the onset of any deal, due diligence is conducted so as to gauze the risks
involved, the quantum of assets and liabilities that are acquired etc.

DISTINCTION BETWEEN MERGERS AND ACQUISITIONS

Although they are often uttered in the same breath and used as though they were
synonymous, the terms merger and acquisition mean slightly different things.
When one company takes over another and clearly established itself as the new owner,
the purchase is called an acquisition. From a legal point of view, the target company
ceases to exist, the buyer "swallows" the business and the buyer's stock continues to be
traded.
In the pure sense of the term, a merger happens when two firms, often of about the same
size, agree to go forward as a single new company rather than remain separately owned
and operated. This kind of action is more precisely referred to as a "Merger of Equals".
Both companies' stocks are surrendered and new company stock is issued in its place.
For example, Both Daimler-Benz and Chrysler ceased to exist when the two firms
merged, and a new company, DaimlerChrysler, was created.
In practice, however, actual mergers of equals don't happen very often. Usually, one
company will buy another and, as part of the deal's terms, simply allow the acquired firm
to proclaim that the action is a merger of equals, even if it is technically an acquisition.
Being bought out often carries negative connotations, therefore, by describing the deal
euphemistically as a merger, deal makers and top managers try to make the takeover
more palatable.
A purchase deal will also be called a merger when both CEOs agree that joining together
is in the best interest of both of their companies. But when the deal is unfriendly - that is,

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when the target company does not want to be purchased - it is always regarded as an
acquisition.
Whether a purchase is considered a merger or an acquisition really depends on whether
the purchase is friendly or hostile and how it is announced. In other words, the real
difference lies in how the purchase is communicated to and received by the target
company's board of directors, employees and shareholders. It is quite normal though for
M&A deal communications to take place in a so called 'Confidentiality Bubble'
whereby information flows are restricted due to confidentiality agreements.

ADVANTAGES OF M&A’S

 ECONOMIES OF SCALE
This generally refers to a method in which the average cost per unit is decreased through
increased production, since fixed costs are shared over an increased number of goods. In
a layman‘s language, more the products, more is the bargaining power. This is possible
only when the companies merge/ combine/ acquired, as the same can often obliterate
duplicate departments or operation, thereby lowering the cost of the company relative to
theoretically the same revenue stream, thus increasing profit. It also provides varied pool
of resources of both the combining companies along with a larger share in the market,
wherein the resources can be exercised.

 INCREASED REVENUE/INCREASED MARKET SHARE

This motive assumes that the company will be absorbing the major competitor and thus
increase its power (by capturing increased market share) to set prices.

 CROSS SELLING
For example, a bank buying a stock broker could then he can sell banking products to the
stock brokers‘ customers, while the broker can sign up the banks‘ customers for
brokerage account. Or, a manufacturer can acquire and sell complimentary products.

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 CORPORATE SYNERGY
Better use of complimentary resources. It may take the form of Revenue Enhancement
(To generate more revenue than its two predecessor standalone companies would be able
to generate) and Cost Savings (To reduce or eliminate expenses associated with running a
business).

 TAXES
A profitable can buy a loss maker to use the target‘s tax right off i.e. wherein a sick
company is bought by giants.

 GEOGRAPHICAL OR OTHER DIVERSIFICATION

This is designed for smooth earning results of a company, which smoothens over long
term the stock price of the company giving conservative investors more confidence for
investing in the company. However, this does not always deliver value to the
shareholders.

 RESOURCE TRANSFER
Resources are unevenly distributed across firms and interaction of target and acquiring
firm resources can create value through either overcoming information asymmetry or by
combining scarce resources. E.g.: Laying off employees, reducing taxes etc.

 IMPROVED MARKET REACH AND INDUSTRY VISIBILITY

Companies buy companies to reach new markets and grow revenues and earnings. A
merger may expand two companies' marketing and distribution, giving them new sales
opportunities. A merger can also improve a company's standing in the investment
community; bigger firms often have an easier time raising capital than smaller ones.

 SYNERGY
Another commonly cited motive for mergers is the pursuit of synergistic benefits. This is
the new financial mathematics that shows that 2 + 2 = 5.

30
That is, as the equation shows, the combination of two firms will yield a more valuable
entity than the value of the sum of the two firms if they were to stay independent:
Value (A + B) > Value (A) + Value (B)
Although many merger partners cite synergy as the motive for their transaction,
synergistic gains are often hard to realize. There are two types of synergy: That which is
derived from cost economies and that which comes from revenue enhancement. Cost
economies are the easier of the two to achieve because they often involve eliminating
duplicate cost factors such as redundant personnel and overhead. When such synergies
are realized, the merged company generally has lower per-unit costs. Many of the
consolidating mergers of the fifth merger wave are partially based upon the pursuit of
such synergistic economies. Because this is an important part of the fifth merger wave, it
is discussed separately in the section that follows this one. Revenue enhancing synergy is
more difficult to predict and to achieve. An example would be where each firm believes
that it can sell its products and services to the other firm‘s customer base. Another
example would be a situation where one company‘s capability, such as research prowess,
is combined with another company‘s capability, such as marketing skills, to significantly
increase the combined revenues

TRENDS IN M&A DEALS

Merger and Acquisition Trends are important to study in order to judge the market
movements of any particular economy. Not only the markets of particular countries, but
also the World Market gets influenced by the significant Mergers and Acquisitions. So,
one can easily understand how determining the Merger and Acquisition Trends are in the
overall development growth of any economy.
In the years 2006 and 2007, the world experienced numerous mergers and acquisitions.
All over the world, in the developed and developing nations, record number of merger
and acquisition deals took place of these mergers and acquisitions actually led to decrease
in number of public undertakings and increase in number of private enterprises. This

31
happened as many public organizations all over the world, were either merged into or
acquired by big private institutions.
The reason of this particular Merger and Acquisition trend was the emergence and rapid
growth of Private Equity Funds. Moreover, the regulatory environment of the publicly
owned companies and the urge to attain growth of short term earnings were also behind
the specific trend of Mergers and Acquisitions.

AMALGAMATION OF AIR INDIA & INDIAN AIRLINES

The Government of India, on 1 March 2007, approved the merger of Air India and Indian
Airlines. Consequent to the above, a new Company viz National Aviation Company of
India Limited (NACIL) was incorporated under the Companies Act, 1956 on 30 March
2007 with its Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New
Delhi. The Certificate to Commence Business was obtained on 14 May 2007. Presently,
the Board of NACIL consists of:
 Shri Raghu Menon, Addl Secretary & Financial Advisor, Ministry of Civil
Aviation
 Shri R K Singh, Jt Secretary, Ministry of Civil Aviation
 Shri Rajiv Bansal, Director, Ministry of Civil Aviation
The most important development with respect to the company Indian Airlines has been
the merger of both the Public Sector carriers of India namely Indian Airlines Ltd. And
Air India Ltd With a new company namely National Aviation Company of India Ltd.
The company was renamed as Air India Limited on October 26, 2010.
After the approval to the scheme of merger by the government of India, the ministry of
corporate Affairs vides their Order dated 22nd August 2007 has approved the scheme of
Amalgamation of Air India Limited and Indian Airlines Ltd With the National Aviation
Company of India Ltd (NACIL) with effect from 1st April 2007.
The merger of new company will enable the new company to generate further
momentum, as the combined strength of two companies will give various synergy
benefits resulting into financial benefits to NACIL.

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Some of the benefits which will accrue to NACIL are:
 Route Rationalization
 Fuel Procurement
 Engineering
 Stores & Inventory Purchase both aircraft and non aircraft
 Insurance benefits
 Handling of flights
 Employee Productivity
The Scheme of Amalgamation of Air India Limited and Indian Airlines Limited with
NACIL was approved by the Board of Directors of all the three Companies.
Thereafter, the Meetings of Secured and Unsecured Creditors of Air India and Indian
Airlines were held in New Delhi on 28 June 2007, in which the Scheme of Amalgamation
was approved by the Creditors. The final hearing of the merger petition was held on 31
July 2007 wherein the last date for submissions of objections was fixed on 8 August
2007 and the Order of the Ministry of Corporate Affairs is awaited.
The Authorized and Paid-Up Share Capital of the merged entity will be Rs.1500, 05,
00,000/- and Rs.145,00,00,000/-,respectively.
It has been decided that post merger, the new entity will be known as ―Air India‖ while
―Maharaja‖ will be retained as its mascot. The logo of the new airline will be a red
colored flying swan with the ―Konark Chakra‖ in orange placed inside it. The flying
swan has been morphed from Air India‘s characteristic logo ―The Centaur‖ whereas the
―Konark Chakra‖ was reminiscent of Indian‘s logo. The Corporate Office of NACIL will
be at Mumbai.
The Government has approved the appointment of Shri V Thulasidas and Dr V Trivedi as
Chairman & Managing Director and Joint Managing Director, respectively, of the
merged entity, with effect from the date of merger.

This amalgamation results to:

Transfer of assets:
As per the section 391-394 all the assets of both the companies are managed by the
NATIONAL AVIATION COMPANY OF INDIA LIMITED (AIR INDIA). It includes
all intangible assets, land, buildings etc.

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As well as all the: Subsidiary companies Of Indian Airlines i.e,
 Airlines Allied Services Ltd.
 Vayoodoot Limited
 IAL Airports Services Limited& Subsidiary Companies of Air India i.e.
 Air India Engineering Services Limited
 Air India Air Transport Services Limited
 Hotel Corporation Of India Limited
 Air India Charters Limited
Shall become the subsidiaries of the NATIONAL AVIATION COMPANY OF INDIA
LIMITED (AIR INDIA).

Transfer of Liabilities
All loans raised and used and liabilities incurred by both the companies are transferred to
the NATIONAL AVIATION COMPANY OF INDIA LIMITED (AIR INDIA).

Contracts, Deeds, Approvals, Exemption etc

All the Contracts ,Deeds, Bonds, Agreements, Schemes, Arrangement, insurance policies
,indemnities ,guarantees ,and other instruments whatsoever in nature of both the
companies shall be in full force of NATIONAL AVIATION COMPANY OF INDIA
LIMITED.
All the rights and licenses of trademarks, know how, trade names, trading style, logos,
emblem, label designs etc. shall be in full force of NATIONAL AVIATION COMPANY
OF INDIA LIMITED.

Employee’s state after merger

After merger all the employees of both the company will become the employee of
NATIONAL AVIATION COMPANY OF INDIA LIMITED.

34
The services of officers and other employees of both the companies when transfer to the
NATIONAL AVIATION COMPANY OF INDIA LIMITED shall not entitle such officer
or employee to any compensation under any act or law for the time being in force.
With regard to Provident Fund, Gratuity or any other funds created by any of the
company will continued after merger and the NATIONAL AVIATION COMPANY OF
INDIA LIMITED act as substitute for both the companies
The NATIONAL AVIATION COMPANY OF INDIA LIMITED undertakes to continue
to abide by any agreement/settlements with the labor unions / employees by both the
companies.

Conduct of business after merger

Both the Companies shall be deemed to have been carrying on and to be carrying on all
business and activities relating to both Indian Airlines and Air India, for and on behalf of
NATIONAL AVIATION COMPANY OF INDIA LIMITED.
The profit or losses earned by both the companies are treated as a profit and loss
NATIONAL AVIATION COMPANY OF INDIA LIMITED.

Why only amalgamation…?

The Indian aviation environment has changed significantly over the last few years with
rapid increase in demand for domestic and international air services. Expansion of
capacity by current airline players (domestic private and global) as well as entry of new
players has helped meet this demand and at the same time significantly altered the
competitive landscape. Rising fuel prices and shortages of skilled manpower as expected
to put further pressure on all current airline operators.
Both the companies i.e., Indian Airlines and Air India, which were operating in a largely
protected environment, are now faced with the fierce competition from domestic private
and global airline companies. Market shares have declined substantially for both airlines.

35
Significant increase in competitive activity has eroded historical advantage of both
carriers. Leading international carriers have increased coverage and frequency to major
cities in India. Domestic carriers too have significantly ramped up operations.
Fleet renewal and expansion are imperative from a business perspective but the same will
add further pressure on account of interest dues and depreciation expenses.
Thus, the declining market operating and financial performance poses a serious threat to
future survival of the two airlines on a standalone basis. Value for and entry into one of
the global airline alliances, which control almost 70% of global passenger traffic, is best
facilities through a single Flag carrier with an integrated international and domestic
footprints.
This is even more imperative given that both the companies, which historically had
distinctive roles (air India focusing largely on international sectors and Indian airlines
focusing largely on domestic sector), now have increasingly overlapping networks, as
Indian airlines has expanded its foot prints to key international locations.
Finally, in an increasingly consolidating global aviation environment where critical
mass/size is a key success factor, combining the two state owned airlines into a single
merged entity will better equip them to survive and proper amidst fierce global and
domestic competition.

MOTIVES BEHIND THE MERGER

The merger of both the companies with the NATIONAL AVIATION COMPANY OF
INDIA LIMITED, along with a comprehensive transformation program, is imperative to
improve competitiveness. It will provide an opportunity to leverage combined assets and
capital better and build a stronger sustainable business, the merger will
 Create the largest airline in India and comparable to other airline in Asia
 Provide an integrated international/ domestic footprint which will significantly
enhance customer proposition and allow easy entry into one of the three global
airline alliances.

36
  Enable optimal utilization of existing resources through improvement in load
factor and yields on commonly serviced routes as well as deploy ‗freed up‘
aircraft capacity on alternative routes.
 Provide an opportunity to fully leverage strong assets, capabilities and
infrastructure.
 Provide an opportunity to leverage skilled and experienced manpower available
with both the companies to the optimum potential.
 Provide a larger and growth oriented company for the people and same shall be in
large public interest.
 Potential to launch high growth & profitability businesses (ground handling
services, maintenance repair and overhaul etc.).
 Provide maximum flexibility to achieve financial and capital restructuring
through revaluation of assets
 Provide an increased thrust and focus on airline support businesses.
Revenue synergy will be driven by integration of the ‗complementary‘ networks of both
Indian airlines and air India. Cost and capital productivity synergies will be driven by
opportunities for leveraging economies of scale and opportunities for rationalizing
overlapping facilities and infrastructure.
In addition to these synergies, the amalgamation will also provide an opportunity to
initiate a comprehensive transformation program to improve the overall competitiveness
of the merged airline i.e., Indian Airlines and Air India. This while improving the
financial position would help position and equip the merged entity to better face the
current and future challenges arising out of intense competition and declining industry
profitability
.

WHAT PEOPLE SAY ABOUT THE MERGER?

 ON AUGUST 1, 2007 at the function 55th nationalized day of air corporation

employees unions (ACEU) the former civil aviation minister Shanhnawaz
hussain said If they had plans to merge the two airlines, then why did they change

37
 the logo? By what authority did they do so? They did not even discuss it in
parliament. "It is only because they want to remove the identity of Indian. They
just want to promote private airlines and want only players like Jet Airways and
Kingfisher to remain in the business," he alleged.
 As per the news published in March 29, 2007: The amalgamation is indeed going
to be one of the land marks in India‘s aviation history. With Air India and Indian
Airlines boasting of a combined fleet of 122 aircraft and over 34,000 employees,
including 1,315 pilots, the merger will create one of the largest airlines in the
world in terms of the number of aircraft. According to reports the government
expects the merged entity to save around Rs 5,000 crore on an annual basis from
synergies in operations and sharing common facilities. Meanwhile, a sticky issue
is also being sorted out simultaneously as the two carriers speed ahead towards
the merger. The Union government has assured airline employees that their
interests, including employment conditions, wages, seniority and career
progression, would be taken care of and a grievance redressal mechanism would
be in place to protect their interests. The suggestion is that a careful integration of
manpower needs be done at various levels. Consultant Accenture has reportedly
mooted a top-to bottom integration of the employees and has proposed that the
pay scales be revised to bring parity in promotion procedures, according to a
report. So with almost all issues now being sorted out, the runway is hassle free,
well almost. The biggest airline will see more planes flying into its stables too.
The two carriers have placed orders for more aircraft. Reports said that Air-India
has ordered 68 Boeings, while Indian has finalized the acquisition of 43 Airbus
aircraft. So by year 2011, these new planes will also be Air Indian‘s own, making
its stock soar high in the industry and service circles.
 Mr. kapil kaul , chief executive for South Asia for Centre for Asia Pacific
Aviation, a leading airline industry think tank said 'The two state-owned carriers
have both suffered from years of under-investment in their fleet and products, ‗A
combined Air India-Indian Airlines has the potential to become a major global
player if the merger is completed quickly. A full restructuring must also follow to
allow them to realize their potential,‘ Finally, there must be partial sale of equity

38
 by way of an initial public offer to help induce professionalism and market
dynamics, followed by privatization over the next five years or so.'

AFTER MERGER SCENARIO

Positive aspects

 According to industry experts, the merged entity will have a fleet size of 125 new
generation aircraft by 2010 after new aircraft are added and some of the existing
ones are phased out to emerge among the top 30 carriers globally. The turnover
will also top Rs.150 billion.
 At a macro level, experts say the merger between the two state-run carriers will
see the beginning of the process of consolidation in the Indian aviation space - the
fastest growing in the world followed by China, Indonesia and Thailand.
 The merger to create an airline with 125-130 aircraft which is Asia‘s biggest
airlines and soon more aircrafts are to be purchase.

 The cost is also going to reduce because the new routes and timetables of flights
are made according to the need and through which proper utilization of resources
are made.

Negative aspects

 Despite the bullish growth potential, overseas experience shows that it is

extremely difficult for a market to absorb this many new entrants, particularly in
such a short space of time,' the study said, adding that the losses by airlines
industry is expected to top $500 million in the current fiscal year.
 But experts said the merger would also pose some serious challenges in the
months to come, especially in integration of two companies that have had
completely divergent operations.

39
 SWOT ANALYSIS OF AIR INDIA

Air India is the leading airlines in the India. Air India is based on domestic enplaned
passengers and scheduled domestic departures. Air India has shown a strong
performance in revenues in 2008. Strong operating performance lends financial stability
to the company which could be leveraged to seek more growth avenues of growth in
future. However, the rising prices of aviation turbine fuel could adversely affect Air
India operating margins.

STRENGTHS

 OPERATIONAL PERFORMANCE

During fiscal year 2008, the company‘s revenue growth was driven by increase in
passenger segment revenue and merger with Indian airlines. The increase in passenger
revenues primarily was due to an increase in capacity, and an increase in load factor. In
addition the revenue growth is backed by growth in freight and cargo revenues, which
was a result of higher rates charged. This growth was also partly driven by improved
efficiency in the company‘s operations. Strong operating performance lends financial
stability to the company which could be leveraged to seek more growth avenues in the
future.

 MARKET LEADERSHIP

Air India is the leading airlines in the India. The airline has been ranked the top in
India‘s domestic airline (in terms of number of passengers) by the bureau of
transportation statistics (BTS) in 2005. Air India newly orders about 68 from Boeing and
43 from Airbus. Air India dominates the markets it serves, ranking first in market share
in India. Its strong market position is driven not just by consistent delivery of low fares
but also due to reliable service, frequent and convenient flights, comfortable cabins, in-
flight experience, frequent flyer programs, hassle-free airports, and friendly customer

40
service. Strong market position gives the company the advantage of scale and helps it in
strengthening its brand image.

WEAKNESSES

 HIGH DEPENDENCE ON PASENGER REVENUES

Passenger revenues accounted for major part of the Air India total revenue. Cargo
services allow airlines to generate additional revenues from existing passenger flights. In
addition, cargo revenues are usually counter-cyclical to passenger revenues and have
lower demand elasticity than passenger business, which allows airlines to pass on fuel
price hikes to customers. Small cargo business exposes Air India to the demand
fluctuations in passenger business.

 UNDER UTILISATION OF CAPACITY

Air India sells space, which is highly perishable. This is because idle capacity would
imply opportunity lost. Capacity means the total number of seats offered by Air India
daily to its passengers.

OPPORTUNITIES

 GROWING DEMAND FOR LOW COST AIRLINES

In mature markets demand for air travel is increasingly being driven by ticket price and
consumer confidence. A survey by the US Commerce Department shows that ticket price
is the number one criterion for passengers when selecting a flight, well ahead of the
availability of a non-stop service. As markets have progressively matured, the GDP
elasticity of air travel demand has declined. In the US for example, a 1% growth in GDP
will typically result in a 1.2% growth in domestic air travel, compared with a growth of
almost 2% in air travel some 20 years ago.

41
  GROWTH IN FREIGHT BUSINESS

The Indian economy is one of the fastest growing in the world, but the boom is not
without its stops, starts, and bottlenecks, all of which also make themselves felt in the
country‘s freight transport sector. Air India had also launched a major cargo incentive
scheme for cargo agents of Air India and erstwhile Indian on the entire network. The
scheme, which generated enormous response, entitled top producing agents of each
region to become eligible for an all-inclusive incentive trip on Star Cruise.

 EXPANDING PASSENGER TRAFFIC IN ASIA-PACIFIC

The demand for air travel to the Asia Pacific is rising driven by increased economic
activity in emerging Asian countries such as China and India. Traffic is projected to
grow at 7% in China and India combined, above the world average of 5%. Further, the
share of Asia Pacific region in world passenger traffic (revenue passenger kilometers) is
forecast to rise from 25% in 2003 to 31% in 2023. Against this backdrop, Air India well
positioned to benefit with its increasing emphasis on Asia-Pacific operations.

THREATS

 INCREASING AVIATION TURBINE FUEL PRICES

The price of aviation turbine fuel (ATF) has soared to record highs in the past few years
and continues to hold at that level. Last few years have once again clearly highlighted
the highly cyclical nature of the Aviation industry worldwide. The ATF prices in India
are substantially higher than its price in international markets. Aircraft fuel is a major
contributor to Air India operating expenses. Moreover, the bonded price applicable for
international flights ex-India is higher than the ATF price in the international markets.
Priced 65% higher in India on an average, compared to international benchmarks.

42
Therefore, this will need stronger revenue growth and greater cost controls in other areas
to overcome the increase in fuel prices.

 HIGH INTEREST RATES

The past few years have seen Central Banks impose higher interest rates to check
inflation and the overheating of regional economies. The Reserve Bank of India has led
the way raising interest rates. Inflation fears in the India may see another raise in the
short-term. According to Economics times, the India real GDP growth is 9.20% in 2007
to 9.00% in 2008 and this downward trend is also seen in 2009. This in turn could
depress consumer spending and offset some of the positive trends in the India for the
company.

 INTENSIFYNG COMPETITION

AIR INDIA is now competing against more credible low cost carriers such as Spice jet,
Go air, Indigo Airline, and Jetlite etc. Indigo Airlines remains Air India strongest
competitor because of its competitive cost structure, strong brand name and ambitious
growth plans over the next seven years. Air India also faces increased competition from
Air Deccan low-fares subsidiary, Song. Moreover, major legacy airlines have been
focusing on restructuring costs, which has improved their competitiveness. With costs
restructured, the legacy airlines are becoming more formidable competitors in terms of
increasing capacity, matching prices and leveraging their frequent flier programs.
Increasing competition could adversely affect the company‘s margins.

43
 CONCLUSION

Air India's biggest aircraft order in its history was placed in 2005 for 68 aircraft from
Boeing and Airbus, including 27 Dreamliner 787s from Boeing and 41 planes from
Airbus. The primary reason behind the order was to modernize Air India's fleet, which
had become outdated and inefficient. However, the order faced several challenges,
including delays in delivery due to production issues and financial difficulties. It also
faced criticism from some quarters for being too large and expensive. Overall, the order
was a significant move towards modernizing Air India's fleet and positioning itself as a
major player in the global aviation market, but it also faced several challenges and
criticisms, and its impact on Air India's operations and finances has been mixed.

From the above brief discussion of the facts and figure we can easily conclude that the
merger plays huge advantage not only for the growth and survival of the companies but
also to be in market.

As we know, the merged entity will have a fleet size of 125 new generation aircraft by
2010 after new aircraft are added and some of the existing ones are phased out to emerge
among the top 30 carriers globally. The turnover will also top Rs.150 billion. This will
showing that both Indian airlines and air India going on right track and soon it will
become the No.1 Airline player.

NACIL now is the largest domestic carrier in the world in terms of fleet strength. Right
now celebrating over fifty years of operations, it has seen both the ups and downs of the
industry. It has faced losses and made gains.
It had adopted a big loss so as to bolster its profits and managerial efficiency. Today,
financial managers round the world do not consider it wrong for a company to have
negative loss. However, the evils of illiquidity in the short term are too dangerous to
overlook. Thus, it is always better to take up things, instead worrying about the
situations. This not only helps the company to increase its efficiency in managing its
funds but also gives the company enough liquidity in the short term to overcome the short

44
term liquidity problems. The report does not foresee any liquidity problem for the
company in near future. However a company must prepare itself such that it does not
face any problem even in the worst case scenario.

45
LEARNINGS

I was placed in a branch of Air India Ltd. at IGI Airport, TR- 1 New Delhi. It was
a great experience.
 Studying the history of the company.
 Studying how Air India is working.
 A Little bit about how expenditure division is work.
 See how these different sub division of expenditure division are working
like expenditure division is dividing into 6 sub divisions:-
 Bill Passing – Local
 Bill Passing – Out Station
 Provident Fund
 Payroll
 Cash and Bank
 Finance and Budget
 Study how these divisions are working.
 They gives us to analysis the balance sheets after merger and told us to
check why air India facing losses. What are the factors due to which
air India facing losses?
 Study why merger take place between these two companies.

46
 BIBLIOGRAPHY

Internet

http://srinivasuniversity.edu.in/publications-journals/
[1] Aithal, P.S & Suresh Kumar, P.M. (2017). Challenges and opportunities for Research &
Publications in Higher Education
[2]Bowonder, B., Prasad, B. R., & Kotla, A. (2005). ICT application in an aviation industry: the e-
experience of airlines. IJSTM, 6(3/4/5), 241-265.
*3+ Joshi, R. M. (2014). India’s aviation industry: opportunities, challenges and strategies. In
National Seminar (pp. 20-36).
[4] Singh, S. (2007). Services offered by air India: A case study of Economy, India 62(902-2016-
67993).
[5]www.airindiaexpress.comhttp://www.scribd.com/doc/55787671/3/Figure-1-3-
Organizational-Structure-of-Air-India
http://www.moneycontrol.com/financials/jetairways/balance-sheet/JA01#
http://www.moneycontrol.com/competition/jetairways/comparison/JA01
http://www.moneycontrol.com/financials/jetairways/balance-sheet/JA01#

Annual Reports / Financial Statements

 Annual Report of NACIL

 Financial Statements of Air India
 Financial Statements of Indian Airlines
 Annual Report of Kingfisher Airlines
 Annual Report of Jet Airways

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