Air India to overhaul network, operations

Mumbai: State-run National Aviation Co. of India Ltd, or Nacil, which operates flag carrier Air India, has shortlisted German plane repair firm Lufthansa Technik AG and Virginia, US-based aviation consultant Simat Helliesen and Eichner Inc. to develop a network strategy and operational plan that would help it make the best use of its fleet and become part of a global alliance of airlines.
“Nacil is initiating a clean-sheet exercise for its network strategy,” said a Nacil executive. “The (selected company) will carry out market analysis, including seasonality analysis, with updated market sizes and prediction of demand at various cities.” Lufthansa Technik or Simat Helliesen would also study aviation hub development in India and abroad and make recommendations based on traffic flow and potential, added the executive, who didn’t want to be named.
Nacil, with a market share of 18% in August according to ministry of civil aviation data, is under greater pressure to improve its competitive edge after private-sector rivals Jet Airways (India) Ltd and Kingfisher Airlines Ltd, with a combined market share of 58.5%, formed an alliance last week to lower costs, as they reel under the impact of increased aviation fuel prices.
The Jet-Kingfisher alliance will see the country’s two largest private airlines buy fuel together, share infrastructure, and enter into code-sharing agreements that will allow them to reduce flights on selected routes.
Lufthansa Technik is a global player in the maintenance, repair and overhaul (MRO) segment for commercial aircraft, engines and components. Simat Helliesen is one of the largest consulting firms dedicated to the air transport industry.
19/10/08 P.R. Sanjai/Livemint.

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Categories: NACIL Oct 2008