Air India Express to get a new name, shift base to Kerala

Air India plans to rebrand its international low-cost subsidiary Air India Express and move the latter’s headquarters from Mumbai to Thiruvananthapuram.
The move is part of the national flag carrier’s efforts to restructure operational and marketing strategies after accumulating Rs.14,000 crore in losses over the past four fiscals. The airline is also weighed down by debt of Rs.18,000 crore.
It has already announced plans to rename its holding company, National Aviation Co. of India Ltd (Nacil), to Air India Ltd. Its regional airline service, tentatively named India Hopper, will also be renamed. “Air India is considering a new name for Air India Express as a part of branding,” chief operating officer Gustav Baldauf said. “We will also appoint a consultant (for the rebranding).”
Air India Express mostly flies to West Asian destinations, and a large number of its passengers are from Kerala. Moving its headquarters to Kerala’s capital city will, Baldauf said, lead to “better operational synergies”.
The new chief operating officer of Air India Express would shuttle between Mumbai and Thiruvananthapuram for coordination.
Experts said Air India will benefit from the rebranding, but it should be accompanied by substantive changes in the way the state-owned company functions.
Baldauf said the airline will be changing more than just its name. For instance, it has appointed Stephan Sukumar, a former chief flight training instructor at German airlines Deutsche Lufthansa AG, as its new chief training officer. Sukumar will set common standards for all divisions of Nacil.
25/10/10 PR Sanjai/Live Mint

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Categories: Air India Budget Oct 2010, NACIL Oct 2010, New Oct 2010