Air India's first Chief Operating Officer faces an uphill battle

Air India announced the appointment of Gustav Baldauf as its first Chief Operating Officer (COO) in early Apr-2010, as one of the critical steps under its turnaround plan. Mr Baldauf is also the carrier’s first expatriate on its management team. He is currently the Executive Vice-President - Flight Operations with Austrian Airlines and previously served Jet Airways as Vice-President - Flight Operations. Baldauf’s joining date has yet to be agreed, but the move has already raised a storm of criticism in India. [2977 words]

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This report contains the following subheadings:

• Expected to have incurred a USD1.2 billion loss for FY2009/10
• Substantial restructuring required to turnaround operating loss margins in excess of 20%
• To reduce fleet size by 30% this fiscal year
• Bond sale to assist the acquisition of aircraft
• Will a reduction in salaries and incentives be accepted NACIL staff?
• Air India one step closer to Star Alliance, signs for IT integration with SITA
• Lufthansa backing Air India’s entry to Star
• Air India reports 25% increase in passenger numbers in fourth quarter
• Air India and SATS sign 50:50 JV agreement on ground and cargo handling
• Outlook: Challenges ahead for Baldauf to steer Air India’s turnaround

This report contains the following charts and tables:

• Air India operating profit/loss: FY1997/98 to FY2008/09 in INR
• Air India operating profit margin: 1997-98 to 2007-08
• Air India, Jet Airways and Kingfisher Airlines codeshare partnerships
• Indian domestic market share: Mar-2010
• Air India domestic passenger numbers and passenger numbers growth: Mar-2009 to Mar-2010