New Delhi: The Narendra Modi-led Government’s plan to sell debt-laden airline Air India is well on track but the sale may not mop up the targeted yield owing to its value erosion over last several months since it decided to stop selling tickets on the platform of global ticketing distribution company Amadeus.
In October last year, Travelport had announced that it had “won competitive tender process undertaken by Air India for the sole provision of distribution of its domestic flight content in the airline’s home market”.
The national carrier had decided to shift to Travelport despite several senior officials raising objections against the move. Joining hands with Travelport meant giving access to details of AI’s flyers to Interglobe Technologies Quotient, a strategic business unit of InterGlobe Enterprises which is the parent company of IndiGo, India’s largest airline by market share and Air India’s biggest competitor.
It is understood Amadeus managed about 50 percent of Air India’s ticket sales through its GDS network.
GDS is a globally connected computerised reservation network offering a one-point access to airline bookings, hotel reservations as well associated travel-related areas including car rentals.
Dr Sanat Kaul, Chairman International Foundation for Aviation Aerospace and Drones said “Air India has been on the proverbial ventilator for long time. Divesting it’s saleable assets and properties is not the answer to this mess. Reducing it’s vast GDS distribution network to one vendor is shrinking its catchment area of passengers. The government policy of appointing one CMD after another who have no background in aviation or airlines business shows its lack of seriousness. Taxpayers are the victims of this policy unlike other airlines which go in for liquidation.”
16/09/19 Pioneer
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In October last year, Travelport had announced that it had “won competitive tender process undertaken by Air India for the sole provision of distribution of its domestic flight content in the airline’s home market”.
The national carrier had decided to shift to Travelport despite several senior officials raising objections against the move. Joining hands with Travelport meant giving access to details of AI’s flyers to Interglobe Technologies Quotient, a strategic business unit of InterGlobe Enterprises which is the parent company of IndiGo, India’s largest airline by market share and Air India’s biggest competitor.
It is understood Amadeus managed about 50 percent of Air India’s ticket sales through its GDS network.
GDS is a globally connected computerised reservation network offering a one-point access to airline bookings, hotel reservations as well associated travel-related areas including car rentals.
Dr Sanat Kaul, Chairman International Foundation for Aviation Aerospace and Drones said “Air India has been on the proverbial ventilator for long time. Divesting it’s saleable assets and properties is not the answer to this mess. Reducing it’s vast GDS distribution network to one vendor is shrinking its catchment area of passengers. The government policy of appointing one CMD after another who have no background in aviation or airlines business shows its lack of seriousness. Taxpayers are the victims of this policy unlike other airlines which go in for liquidation.”
16/09/19 Pioneer
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