Air India plans to rebuild the carrier's top management team as three of the carrier's executives have resigned in recent weeks (Economic Times, 02-Mar-2011). Details of the new management structure will be provided at a board meeting, slated for 15-Mar-2011. Air India Express COO Pawan Arora was sacked last month and Air India's chief training officer, Stephan Sukumar, resigned last week. Air India COO Gustav Baldauf resigned on 28-Feb-2011 after less than 12 months in the position. With these exits, amid allegations of non-performance and high salaries, all international management recruits have now resigned or departed the company (DNA, 02-Mar-2011).
As last foreign recruit resigns, Air India plans new management
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Air India launched services to Melbourne and Sydney in 2013 but the Australia-India market is still dominated by Southeast Asian flag carriers. Singapore Airlines has been able to maintain a leading 41% share of the market. Malaysia Airlines also still carries more Australia-India passengers than Air India.
Attracting more nonstop flights from Air India, or the possible launch of nonstop flights to India by Australian carriers, will not be easy despite growing demand. Southeast Asia’s network airlines have a competitive advantage as they serve several gateways in both Australia and India. Southeast Asia’s growing medium/long haul LCCs have also started to compete in the Australia-India market and are well positioned to take a large share of the anticipated growth.
India’s aviation market surges 20% on economic growth and low fuel prices
Indian aviation is, after many years of promise, seemingly starting to deliver on its potential. It is currently the fastest-growing major aviation market in the world. With strong GDP growth of around 7.5% India is surging ahead of China in the economic growth stakes.
Meanwhile, the decline in oil prices has supported lower fares, driving year-on-year domestic traffic growth in excess of 20%. Its airlines are even starting to make money.
LCC, IndiGo, established less than a decade ago, has become the dominant player in the domestic industry. At the end of the Indian financial year, on 31-Mar-2016, IndiGo was the largest airline in the domestic market with a passenger share of 38.4%, followed by Jet Airways at 20.2%. LCCs accounted for 61.7% of domestic traffic.