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It has been 12 days since Air India AI171 crashed that killed more than 240 people. During that time, the airline was unable to take a break. Let’s take a look at everything the company has handled and what this means to the business and its customers.
Even worse news
Air India has never made it worse. India’s aviation regulator has asked the airline to remove three employees due to the expiration of the crew’s roster. They also requested that pilots of two flights from Bengaluru to London explain why they have come to work beyond the mandated 10-hour limit.
The company is already under intense pressure, with regulators ordering increased maintenance checks and safety inspections across the Boeing 787 fleet. This is a model involved in this month’s tragedy in Ahmedabad. Recent escalations in the Middle East conflict have been useless, leading to airspace closures and nighttime restrictions at some airports. This means that flights have become longer and more expensive. There were also several reports last week that flights were being repurposed due to safety concerns, crew issues and even bomb horrors. Airlines are being forced to cut their sales fleet. The wide plane costs 15%, while the narrow plane costs 5%.
What does this all mean? Unstable and frustrated customers. Air India has not managed to convince passengers that it is within the scope of its business. According to the Travel Association, this bad news and daily IV of Pullback has already shaking a vulnerable confidence in the airline, with bookings plummeting by around 20% so far. Messages from civil aviation authorities have made that worse. That recently intensified scrutiny and demand portrays the airline as an exclusive responsibility for all failures. However, actions on crew rosters and flight times stem from the expiration of allegations that occurred prior to the crash, suggesting that regulators may have previously been too loose.
That doesn’t mean that airlines don’t have many answers. Even the sad dol’s message from CEO Campbell Wilson was very similar to what his counterpart posted on American Airlines after the fatal crash in January, causing accusations of plagiarism. Air India Chair n Chandrasekaran says the company will investigate the claims. This may seem minor, but it talks about the general slipshod approach that Air India seems to have had. For too long, social media videos and news headlines highlight entertainment system failures, broken air conditioning, leaks and other defects in aircraft. More than ever, passengers stepping on planes need to feel confident in their airworthiness.
Airlines also need to communicate with both regulators and potential customers if they want to be more confident in their brand. Ahmedabad crash is an inflection point for the Indian flag airline. If it doesn’t summarise the act now, when is it?
Are you worried about flying Air India now? Hit a reply or email indiabrief@ft.com
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Create space for space
The intent of the Indian government is that all non-defense-related sectors in the sector will ultimately be run by private companies ©AP
Indian fighter jet manufacturer Hindustan Aeronautics Limited has won a bid to manufacture and sell small satellite launch rockets. This is the biggest step India has taken to open the space industry. As part of the agreement, ISRO, the national space agency of India, will transfer cost-effective on-demand technology to HAL to launch satellites weighing in Earth orbit up to 500kg. ISRO will also hand over HAL to make at least two such rockets over the next two years.
Space technology has been booming over the past decade, with small satellite launch vehicles increasingly being used for communication and several other research functions. India was a huge success in space exploration, but in other regions it was a slow starter, especially on the Chandrayaan mission. The government has great ambitions for the industry, aiming to increase annual revenues from $8.4 billion in 2022 to $44 billion by 2033. A quarter of this should come from exports, and New Delhi aims to become a “global leader.” To achieve these goals, the government is pushing for an increase in private participation in the sector, especially in the face of an increasing strategic threat from China’s much higher capabilities.
The government’s intention is that all non-defense-related sectors in the sector will ultimately be run by private companies. This is a good move. Private capital deepens the sector and makes it more efficient. Already, several companies are engaged in a variety of related projects, especially in the south of the country. Before HAL won the recent bid, around 20 groups expressed interest and pipped Adani-backed Alpha Design Technologies and Bharat Dynamics.
I’d like to see how fighter plane makers work. The manufacturing capacity of defense equipment has grown thinly, and the company already handles important backlogs and was responsibly responsibly by the Indian Air Force Chief earlier this year. It is important that HAL prioritizes this new opportunity and succeeds in its deadline.
Go to the diagram
Markets around the world were worried about the Middle East crisis. After a sudden opening, the Indian stock market recovered slightly. Brent crude opened five months high, but settled at $77.87. Gold prices fell slightly as the dollar strengthened. See the key figures in India.
My Mantra
“I’ve always treated my career in technology as a marathon rather than a sprint, or using the analogy of cricket, it’s been built strategically, steady and long-term to borrow more test matches than the T20. In a fast-moving industry, chasing easy wins is easy, but the real impact is to keep pace yourself and put your body in with your heart.
John Lombard, CEO of Asia-Pacific, NTT Data
Each week we invite successful business leaders to teach us the mantras of work and life. Want to know what your boss is thinking? Reply to indiabrief@ft.com and nominate
Simple questions
Do you think Iran has the ability to return to the US in an important way? Please tell me here.
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Buzzer round
On Friday we asked: The iconic film, released 50 years ago, was a real threat to the beach hotel business and the scuba diving industry.
answer? Jaws was a monster hit that sent people screaming from the beach to the cinema.
Many of you have got the right answer to this. Ram Teha wrote first, followed by Anirudha Datta, Yaman Singhania and Rudrajit Dawn. Congratulations!
Thank you for reading. Indian Business Briefing is compiled by Tee Zhuo. Send feedback, suggestions (and gossip) to indiabrief@ft.com.
