0
The problems in Air India were due to neglect, incompetence and corruption.
1. It is in a fiscal mess - it lost US$1 billion in FY 2008-09 and US$1.5 billion in FY 2009-10. It has not enough reserves to pay for operating expenses, such as wages, fuel costs, subsidies, etc. and required a bailout of $2 billion USD in 2010. Air India began to lose it's lion share of the market with the wave of economic liberalization that started in the 1990s.
2. As with all state-owned enterprises, Air India is riddled with incompetent employees. Mismanagement, labor disputes and corruption are rife in Air India, as is political interference. Talks about privatization are often stymied by political groups and labor unions.
3. The merger with Indian Airlines proved to be disastrous. After the initial merger in 2007, the two airlines posted a combined loss of $1.3 billion USD in 2009. This shot due to restructuring issues, partially due to the financial crunch of 2009-10. By March 2011, Air India has racked up $7.8 billion USD in debt and an operating loss of $4 billion USD. The decision to buy 100 planes, as well as high operating costs can also be blamed for the high debt.
Wiki User
∙ 11y ago
Wiki User
∙ 13y agoAir India do losses because its very worst airlines in the world.Its foolish airlines in the world.Air India are losers............hahaha.
Add your answer:
Earn +20 pts
What are the problems faced by dhangar community of India?
why are askin g from me see in your 9 class history book lazy person
What problems does India face today?
India faces many problems today.first one: mainly they are political problems.politicians began thinking about their own seats but i think are not minding our problems.I think they we are like servents to them to vote and give them seats.
Problems faced by commercial bank of India?
staff shortagenon repayment/inadequate recovery of loan political interference
Difference between Air India and Air India Express?
Air India is owned by Air India Limited and is a government enterprise. Air India Express is a low cost airline but is a subsidiary of Air India Limited. They operate fewer flights, have a smaller fleet, and flies to fewer destinations.
Problems faced by financial services market in India?
less instrument and less new market,instead need of factoring project financing,less effective protection creativity of idea and technology thats all are the problems on market of India.
Banking problems in India faced by Customers?
problem faced by cudtomer
What are the problems faced by tourists in India?
theft
Problems faced by gond tribe of India?
The Gond Tribe can be found living in the central region of India. Some of the problems faced by the Gond are discrimination and lack of education.
Problems faced by public enterprises in India?
public enterprisises are facing problem in india
What are the problems faced by India after the freedom explain?
Limited employment opportunities is one of the problems faced by India after the freedom. This has been caused by the failure of the government to generate employment opportunities. The other problem faced by India is that certain political leaders have used the freedom to incite their supporters to sabotage the government.
What were challenges the inventor of the hot air balloon faced?
they faced problems like gas prices
Explain the various problems faced by the public enterprise in India?
Public enterprise in India suffers from a lack of infrastructure in many rural areas. The key problems being faced the public enterprise in India are the need to increase capacity and to increase profitability.
Initial problem faced by Pakistan after its creation?
From its very beginning, Pakistan faced several problems. The first was having to choose a capital and form a government as well as a secretariat. The massacre of Muslim refugees in India, and a dispute with India over canal water were other problems that needed to be dealt with.
What are the problems faced by dhangar community of India?
why are askin g from me see in your 9 class history book lazy person
What problem did vasco da gama face?
Vasco da gama faced many problems, but when he traveled to India by ship, many ship wrecks,sinking of ships caused problems but he never let faith he continued his travel.
What challenges do polar explorers face?
They faced problems such as harsh climate, little food, independence, and thin air.
What are problems faced by exporters at procedural level?
what are the problems faced by exporters at procedural level
