Air India to rework network strategy and optimize operations
21 October 2008
Mumbai: Indian flag carrier Air India's holding company, the public sector National Aviation Co. of India Ltd, (NACIL) is reported to have short listed German aircraft maintenance company Lufthansa Technik AG, along with the US-based aviation consultant Simat Helliesen and Eichner Inc., as possible consultants who would be tasked with developing a network strategy and operational plan to help the airline optimize its fleet utilization and become a part of a global alliance of airlines.
Lufthansa Technik a leading independent provider of maintenance, repair and overhaul (MRO) for commercial aircraft, engines and components. Simat Helliesen & Eichner, Inc. (SH&E) is the leading aviation consulting firm dedicated to air transportation.
Reports quoted NACIL sources as saying that Air India would embark on a new network strategy as per the recommendations of whichever of the three companies is selected as its consultant. The selected company would be tasked with doing a market analysis, including a seasonality analysis that will update market sizes and predict demand at various cities.
Reports suggest that additionally, Lufthansa Technik or Simat Helliesen would also analyse the option of developing an aviation hub in India and / or abroad, and would make recommendations based on existing and potential traffic patterns. The project is said to have a time line of four months from the date of selection.
NACIL commanded a market share of around 18 per cent according data for August 2008 from the civil aviation ministry. The carrier is under pressure to improve its competitive edge now that the number two and three carriers, private sector airlines Jet Airways and Kingfisher Airlines, have come together in an operational alliance that seeks to manage their costs better.
The two private sector carriers together command around 58.5 per cent of the market. Under their alliance, Jet and Kingfisher will buy jet fuel together, share infrastructure, and use a code-sharing agreement to reduce the number of flights on selected routes.
