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Air India is the flag carrier airline of India and the third largest airline in India in terms of passengers carried, after IndiGo and Jet Airways. It is owned by Air India Limited, a Government of India enterprise and operates a fleet of Airbus and Boeing aircraft serving 84 domestic and international destinations. It is headquartered in New Delhi. Air India has major domestic hubs at Indira Gandhi International Airport, New Delhi and Chhatrapati Shivaji International Airport, Mumbai and secondary hubs at Netaji Subhas Chandra Bose International Airport, Kolkata and Chennai International Airport. Air India became the 27th member of Star Alliance on 11 July 2014.
Founded in 1932 by J. R. D. Tata and later renamed as Tata Airlines, he flew its first single-engine, a de Havilland Puss Moth, carrying air mail from Karachi to Bombay and later continuing to Madras (currently Chennai). After World War II, it became a public limited company and was renamed to Air India. On 21 February 1960, it included its first Boeing 707–420 named Gauri Shankar and became the first Asian airline to induct a jet aircraft in its fleet. In 2000–01, attempts were made to privatize Air India and from 2006 onwards, it suffered losses after its merger with Indian Airlines.
Air India also operates flights to domestic and Asian destinations through its subsidiaries Air India Regional and Air India Express. Air India uses the Airbus A320 family and Boeing 787 aircraft for selected domestic routes while long distance services use the Boeing 777-300ER, 747 and 787 aircraft. Air India's mascot is the Maharajah (Emperor) and the logo consists of a flying Swan with the wheel of Konark inside it.
Air India had its origin in Tata Sons, founded by J. R. D. Tata, an Indian aviator and business tycoon. In April 1932, Tata won a contract to carry mail for Imperial Airways and the aviation department of Tata Sons was formed with two single-engine de Havilland Puss Moths. On 15 October 1932, Tata flew a Puss Moth carrying air mail from Karachi to Bombay (currently Mumbai) and the aircraft continued to Madras (currently Chennai) piloted by Neville Vincent, a former Royal Air Force pilot and friend of Tata. The airline fleet consisted of a Puss Moth aircraft and a Leopard Moth. Initial service included weekly airmail service between Karachi and Madras via Ahmedabad and Bombay. In its first year of operation, the airline flew 160,000 miles (260,000 km), carrying 155 passengers and 9.72 tonnes (10.71 tons) of mail and made a profit of ₹60,000 (US$890). Later, the airline launched a domestic flight from Bombay to Trivandrum with a six-seater Miles Merlin. In 1938, it was re-christened as Tata Air Services and later as Tata Airlines. Delhi and Colombo were added to the destinations in 1938. During the Second World War, the airline helped the Royal Air Force with troop movements, shipping of supplies, rescue of refugees and maintenance of planes.
After World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India. After the Indian independence in 1947, 49% of the airline was acquired by the Government of India in 1948. On 8 June 1948, a Lockheed Constellation L-749A named Malabar Princess (registered VT-CQP) took off from Bombay bound for London Heathrow marking the airline's first international flight. In 1953, the Government of India passed the Air Corporations Act and purchased a majority stake in the carrier. The company was renamed as Air India International Limited and the domestic services were transferred to Indian Airlines as a part of restructuring. From 1948–1950, the airline introduced services to Nairobi in Africa and to major European destinations Rome, Paris and Dusseldorf. The airline took delivery of its first Lockheed Constellation L-1049 named Rani of Jhansi (registered VT-DGL) and inaugurated services to Bangkok, Hong Kong, Tokyo and Singapore.
On 21 February 1960, Air India International inducted its first Boeing 707–420 named Gauri Shankar (registered VT-DJJ), thereby becoming the first Asian airline to induct a jet aircraft in its fleet. The airline inaugurated services to New York on 14 May 1960. On 8 June 1962, the airline's name was officially truncated to Air India and on 11 June 1962, Air India became the world's first all-jet airline. In 1971, the airline took delivery of its first Boeing 747-200B named Emperor Ashoka (registered VT-EBD) and introduced a new Palace in the Sky livery and branding. In 1986, Air India took delivery of its first Airbus A310-300. In 1993, Air India took delivery of a Boeing 747-400 named Konark (registered VT-ESM) and operated the first non-stop flight between New York and Delhi.
In 2000–01, attempts were made to privatize Air India. In 2000, Air India introduced services to Shanghai, China. On 23 May 2001, the Ministry of Civil Aviation charged Michael Mascarenhas, the then-managing director, with corruption. According to the ministry reports, the airline lost approximately ₹570 million (US$8.5 million) because of extra commissions that Mascarenhas sanctioned and he was later suspended from the airline. In May 2004, Air India launched a wholly-owned low cost subsidiary called Air-India Express connecting cities in India with the Middle East and Southeast Asia. Until 2007, Air India mainly operated on international long-haul routes while Indian Airlines operated on domestic and international short-haul routes. In 2007, Air India and Indian Airlines were merged under Air India Limited and the airline took delivery of its first Boeing 777 aircraft. The airline was invited to be a part of the Star Alliance in 2007.
The combined losses for Air India and Indian Airlines in 2006–07 were ₹7.7 billion (US$110 million) and after the merger, it went up to ₹72 billion (US$1.1 billion) by March 2009. In July 2009, State Bank of India was appointed to prepare a road map for the recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747–300M in March 2009 for $18.75 million to finance the debt. By March 2011, Air India had accumulated a debt of ₹425.7 billion (US$6.3 billion) and an operating loss of ₹220 billion (US$3.3 billion), and was seeking ₹429.2 billion (US$6.4 billion) from the government. A report by the Comptroller and Auditor General blamed the decision to buy 111 new planes and the ill-timed merger with Indian Airlines for the poor financial situation. In August 2011, the invitation to join Star Alliance was suspended as a result of its failure to meet the minimum standards for the membership. The government pumped ₹32 billion (US$480 million) into Air India in March 2012.
On 1 March 2009, Air India made Frankfurt Airport its international hub for onward connections to the United States from India. However, the airline shut down the Frankfurt hub on 30 October 2010 because of high operating costs. In 2010, financially less lucrative routes were terminated and the airline planned to open a new hub for its international flights at Dubai. In 2012, a study commissioned by the Corporate Affairs Ministry recommended that Air India should be partly privatized. In May 2012, the carrier invited offers from banks to raise up $800 million via external commercial borrowing and bridge financing. In May 2012, the airline was fined $80,000 by the U.S. Transportation Department for failing to post customer service and tarmac delay contingency plans on its website and adequately inform passengers about its optional fees.
In 2013, the then-Civil Aviation Minister Ajit Singh stated privatization was the key to the airline's survival. However, the opposition led by the BJP and the CPI(M) slammed the government. In 2013, the Indian government planned to delay equity infusion of ₹300 billion (US$4.5 billion) that was slated to be infused into the airline slowly over a period of eight years. In January 2013, Air India cleared a part of its pending dues through funds raised by selling and leasing back the newly acquired Boeing 787 Dreamliners. In March 2013, the airline posted its first positive EBITDA after almost six years and 20% growth in its operating revenue since the previous financial year. Air India Limited split its engineering and cargo businesses into two separate subsidiaries, Air India Engineering Services Limited (AIESL) and Air India Transport Services Limited (AITSL) in 2013. In December 2013, the airline appointed veteran pilot SPS Puri as its head of operations. The appointment was criticized by the Air India pilots union as Puri allegedly has multiple violations to his name.
Air India became the 27th member of Star Alliance on 11 July 2014. In August 2015, it signed an agreement with Citibank and State Bank of India to raise $300 million in external commercial borrowing to meet working capital requirements. As of 2015, Air India is the third largest carrier in India, after IndiGo and Jet Airways. For FY 2014–15, its revenue, operating loss and net loss were ₹197.81 billion (US$2.9 billion), ₹2.171 billion (US$32 million) and ₹5.41 billion (US$80 million) compared FY 2011–12, which were ₹147.13 billion (US$2.2 billion), ₹5.138 billion (US$76 million) and ₹7.55 billion (US$110 million).
Air India's mascot is the Maharajah (Emperor). It was created by Bobby Kooka, the then-commercial director of Air India, and Umesh Rao, an artist with J. Walter Thompson Limited in 1946. Kooka stated that, "We call him a Maharajah for want of a better description. But his blood isn't blue. He may look like royalty, but he isn't royal". Air India adopted the Maharajah as its mascot in 1946. It was used in promoting it although initially designed only for the airline's memo-pads. The Maharajah was given a makeover in 2015 and the brand is represented by a younger version.
Air India's colour scheme is red and white. The aircraft were painted in white with red palace style carvings on the outside of the windows and the airline's name written in red. The name is written in Hindi on one side and in English on the other. The window scheme was designed in line with the slogan Your Palace in the Sky. The airplanes were earlier named after Indian kings and landmarks. In 1989, to supplement its Flying Palace livery, Air India introduced a new livery that included a metallic gold spinning wheel on a deep red-coloured tail and a Boeing 747, Rajendra Chola, was the first aircraft to be painted in the new colours.
The first logo of Air India was a centaur, a stylized version of Sagittarius shooting an arrow in a circle representing the wheel of Konark. The logo chosen by founder J. R. D. Tata was introduced in 1948 and represented the airline until 2007. On 22 May 2007, Air India and Indian Airlines unveiled their new livery consisting of a Flying Swan with the wheel of Konark placed inside it. The flying swan was morphed from the centaur logo and the chakra was derived from Indian's erstwhile logo. On 15 May 2007, Air India refreshed its livery, making the Rajasthani arches along the windows slightly smaller, extending a stylized line from the tail of the aircraft to the nose and painting the underbelly red. The new logo features on the tail and the engine covers with red and orange lines running parallel to each other from the front door to the rear door.
Air India flies to a total of 84 destinations including 48 domestic destinations and 36 international destinations in 24 countries across four continents around the world. Air India has major domestic hubs at Indira Gandhi International Airport, New Delhi and Chhatrapati Shivaji International Airport, Mumbai and secondary hubs at Netaji Subhas Chandra Bose International Airport, Kolkata and Chennai International Airport. The airline is planning to launch services to South America and Africa. The airline is also planning to enhance connectivity to North America and Europe with direct flights to Washington, D.C., Houston and Stockholm in 2016.
In 1932, Air India started operations with a de Havilland Puss Moth. It inducted its first Boeing 707–420 named Gauri Shankar (registered VT-DJJ), thereby becoming the first Asian airline to induct a jet aircraft in its fleet and on 4 August 1993, Air India took the delivery of its first Boeing 747–400 named Konark (registered VT-ESM). The airline's first Boeing 777-200LR aircraft was delivered on 26 July 2007, which was named Andhra Pradesh. Air India received its first Boeing 777-300ER aircraft on 9 October 2007 and the aircraft was named as Bihar. Air India received its first Boeing 787 Dreamliner aircraft on 6 September 2012 and commenced flights on 19 September 2012.
Apart from the Boeing aircraft, Air India also operates a wide range of Airbus aircraft. In 1989, Indian Airlines introduced the Airbus A320-200 aircraft, which Air India now uses to operate both domestic and international short haul flights. In 2005, Indian Airlines introduced the smaller, A319, which are now used mainly on domestic and regional routes. After the merger in 2007, Air India inducted the biggest member of the A320 family, the A321, to operate mainly on international short haul and medium haul routes. At the same time, Air India leased the Airbus A330s to operate on medium-long haul international routes. As of February 2013, Air India operates 62 Airbus A320 family aircraft. Air India One (also referred to as AI-1 or AIC001) is the call sign of any Air India aircraft carrying the Prime Minister, President or the Vice President. Air India One operates on one of the five Boeing 747-400s that Air India currently owns as VIP flights. Customised Embraer 135 and Boeing Business Jets are also used.
As a part of the financial restructuring, Air India sold five of its eight Boeing 777-200LR aircraft to Etihad Airways in December 2013. According to the airline, plans for introducing ultra-long flights with service to Seattle, San Francisco and Los Angeles were cancelled due to factors like high fuel prices and weak demand. In April 2014, the airline decided to sell its remaining three Boeing 777-200LRs as well, citing higher operating costs. On 24 April 2014, Air India issued a tender for leasing 14 Airbus A320 aircraft for up to six years, to strengthen its domestic network.
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