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In a major development, the <keyword id="64630" type="General" weightage="20" keywordseo="Indian-Commercial-Pilots-Association" source="Orion">Indian Commercial Pilots Association</keyword> (ICPA) and the <keyword id="64606" type="General" weightage="20" keywordseo="Indian-Pilots-Guild" source="Orion">Indian Pilots Guild</keyword> (IPG) of <keyword id="2573" type="General" weightage="20" keywordseo="air-india" source="Orion">Air India</keyword> have rejected the new pay structure proposed by the airline. The primary bone of contention is the reduction in flying allowance from 70 hours to 40 hours every month under the new structure, which the pilots believe is unfair. The two unions have warned of possible 'industrial unrest' if the management goes ahead with the new terms without their consent. While Air India has stated that it will "continue to engage with the remainder of its staff", the airline has taken a tough stance on the issue, saying that there are "no recognised unions in Air India". This is the first wage revision offered by the Tata group-owned Air India since its takeover last year, and it will affect all 3,000 pilots across its four airlines - Air India, <keyword id="6378232" type="General" weightage="20" keywordseo="Air-India-Express" source="Orion">Air India Express</keyword>, <keyword id="1625599" type="General" weightage="20" keywordseo="Air-Asia-India" source="Orion">Air Asia India</keyword>, and <keyword id="2467342" type="General" weightage="20" keywordseo="Vistara" source="Orion">Vistara</keyword>. The pilots' unions have instructed their members to reject the new employment conditions and wage structure offered by the management. An agreement has been put in place for the employees to sign by April 25, but the two unions have stated that they will contest the terms and conditions, with their pilots refusing to sign the revised employment and compensation terms. The two unions have warned of potential industrial unrest if the company takes any coercive or victimising action against their members. In a joint statement, the unions stated that the company reiterated that "all previous understandings, representations and agreements of whatever nature that have been entered into with us are null &amp; void and that the company further has the right to change any terms and conditions". "The term cost to the company for an assumed flying of 70 hrs is deliberately misleading and creates an impression of a generous compensation and accompanying benefits package. The actual guaranteed money being offered is only for 40 hrs. Effectively, any time a pilot is on leave or is unavailable due to recurrent training requirements or document/licence renewals, not to mention any sick leave, there is an automatic pay cut involved," the statement read. "The so-called rationalisations of allowances is not in line with any industry practices as projected by HR. Further, blanket consent is sought for any leave or insurance policy that the company may come up with &amp; which is subject to amendment or outright withdrawal. "Suffice it to say that this is not an all-inclusive list but merely a selection of some of the most outlandish and labour-hostile provisions that we have come across to date. This is dishonourable and how the management is trying to force it down the employees' throats is outright unethical," it added. "Nor has the blatant attack on our rights as workmen to bargain collectively or seek legal redressal for any injustice or victimisation gone unnoticed. Where is the company requirement all of a sudden to forcibly promote almost all the permanent workmen of the union to the so-called Senior Commander management cadre? It is clear from all this that there is a concerted effort to gut the unions and isolate pilots into individual boxes where they can be exploited and victimised at will by the HR department," the statement said. Meanwhile, Air India's spokesperson has defended the new compensation structure, which includes parity among different groups, recognition of managerial and supervisory roles for experienced pilots, and individual contracts sent to pilots and cabin crew for necessary paperwork. "The managerial and supervisory role played by the experienced pilots is also being recognised in the form of designating them as Senior Commander as also offering them a special monthly allowance. The contracts reflecting these enhancements were individually sent to the pilots and cabin crew for necessary paperwork," said the spokesperson. The spokesperson also claimed that a large number of pilots and cabin crew have already accepted the new contracts, and the salary improvements and advancement opportunities they enable. "The airline will continue to engage with the remainder of its staff through this process as currently there is no recognised union in Air India," the spokesperson said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/rils-q4-to-be-driven-by-sustained-momentum-in-retail-business-o2c-to-see-modest-growth/articleshow/99629278.cms">RIL’s Q4 to be driven by sustained momentum in retail business, O2C to see modest growth</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/condom-maker-mankind-pharmas-4326-crore-ipo-to-open-next-week-on-april-25/articleshow/99614288.cms">Condom maker Mankind Pharma’s ₹4,326 crore IPO to open next week on April 25</a>

Air India pilots' unions reject proposed pay structure, warn of industrial unrest

<ul><li><keyword id="2573" type="General" weightage="100" keywordseo="air-india" source="Orion">Air India</keyword> chief <keyword id="5863894" type="General" weightage="50" keywordseo="campbell-wilson" source="Orion">Campbell Wilson</keyword> on Friday said the airline's progress over the last 12 months has been nothing short of stunning.</li><li>Campbell also said that while working on improvements, the airline has not shied away from other ambitious actions such as merging <keyword id="6378232" type="General" weightage="50" keywordseo="air-india-express" source="Orion">Air India Express</keyword> with <keyword id="86568" type="General" weightage="50" keywordseo="air-asia" source="Orion">Air Asia</keyword>, or <keyword id="2467342" type="General" weightage="20" keywordseo="vistara" source="Orion">Vistara</keyword> with Air India, or kicking off the establishment of a new InfoTech Centre, or an <keyword id="6388581" type="General" weightage="50" keywordseo="aviation-academy" source="Orion">Aviation Academy</keyword>.</li></ul>Air India chief Campbell Wilson on Friday said the airline's progress over the last 12 months has been "nothing short of stunning" and there is much more to be done as <keyword id="6355725" type="General" weightage="20" keywordseo="Tata-group" source="Orion">Tata group</keyword> completes the first year of takeover of the carrier. Listing out the major initiatives over the last one year, Air India said it is "finalising a historic order of new aircraft to power future growth". Campbell also said that while working on improvements, the airline has not shied away from other ambitious actions such as merging Air India Express with Air Asia, or Vistara with Air India, or kicking off the establishment of a new InfoTech Centre, or an <keyword id="31907" type="General" weightage="20" keywordseo="Aviation" source="Orion">Aviation</keyword> Academy. "And that's not to mention our much talked-about short- and-medium term fleet expansion," the CEO and <keyword id="13909725" type="General" weightage="50" keywordseo="md-of-air-india" source="Orion">MD of Air India</keyword> said in a communication to the employees. <keyword id="8555" type="General" weightage="50" keywordseo="tata" source="Orion">Tata</keyword> group took control of Air India from the government on January 27 last year. "Taken together, the progress over the last 12 months has been nothing short of stunning, even if so much of what we have been working on has been behind the scenes, building platforms and capabilities so that our future ambitions can take flight. "There is of course much more that needs to be done, and everyone - internally and externally - is hungry for us to do it," Campbell said. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/new-patent-suggests-that-apple-could-bring-a-foldable-iphone-with-a-self-healing-display-in-the-future/articleshow/97302738.cms">New patent suggests that Apple could bring a foldable iPhone with a self-healing display in the future</a> <a href="https://www.businessinsider.in/tech/news/apples-mixed-reality-headset-could-feature-full-body-facetime-avatars/articleshow/97300580.cms">Apple's Mixed Reality headset could feature advanced hand tracking and may work as a second display for Mac</a>

Air India's progress has been 'nothing short of stunning': CEO Campbell Wilson

In the recent past, Dubai has emerged as the favourite holiday destination for Indians looking for a quick escape from their hectic lives, which is why we see almost everyone from the upper middle class of the society either visiting or planning to visit Dubai. However, if you think that the number of Indians visiting Dubai has already reached its height, you would be amazed to know that Dubai isn’t yet tired of hosting Indians, which is why it is seeking to expand air traffic with India and adding 50,000 more seats per week to the current two-way capacity. 
 
However, the proposal will surely be opposed by both local and foreign airlines as it would disproportionately benefit the emirate's flag carrier at the cost of others. 
 
If the proposal is accepted, carriers from the two sides will be flying up to 1.13 lakh passengers every week, a number higher than the combined entitlements allowed under bilateral air traffic agreements with Abu Dhabi, Qatar, Sharjah and Oman. 
 <keyword id="42740" type="COMPANY" weightage="100" keywordseo="Emirates">Emirates</keyword>, which is world's third largest carrier as per the number of passengers, would be the one to gain the most from this move. As if now, it operates 183 weekly India-Dubai flights, which is closer to total flights (over 300) by India's four international airlines - Air India, Jet Airways, IndiGo and SpiceJet. 
 
IndiGo and SpiceJet fly point-to-point flights from India to Dubai, but are making losses on their international operations, because Indians travelling to far off destinations fly with Emirates while having a stop in Dubai, thus benefiting Emirates. Indian airlines fear that if the proposal is accepted and Emirates gets to fly more passengers, more travellers who could have otherwise flown in their flights would choose Emirates because of the ease of connectivity to global destinations. 
 
"How much more does the government propose to give of our traffic to them," owner of one of the airlines cited above told ET. "It's crazy. I think the government will have a problem pushing this through," said the chief of another. 
 
The proposal has come at a time when India and the UAE are coming closer in terms of <a href="http://www.businessinsider.in/India-signs-cyber-security-investments-pacts-with-UAE/articleshow/50961312.cms">international relations</a>. Last week, the crown prince of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, visited India and met the honourable President and PM here. 
 
<a href="http://nomad.sleepout.com/wp-content/uploads/2014/11/emirates-e1416999365423.jpg">Image source</a>

Dubai wants to fly 50,000 more passengers from India per week; Indian airlines wonder why

Last month, we told you how the Indian Civil aviation industry was all set to bid <a href="http://www.businessinsider.in/Civil-aviation-industry-to-say-goodbye-to-the-5/20-formula/articleshow/50282911.cms">goodbye to the 5/20 formula</a>. However, looks like there might be some opposition regarding this change. 
 Apparently, <keyword id="1542889" type="COMPANY" weightage="100" keywordseo="The-Wadia-Group">the Wadia group</keyword> is opposing the decision of the <keyword id="58151" type="ORGANIZATION" weightage="100" keywordseo="civil-aviation-ministry">civil aviation ministry</keyword> to dismantle the 'five years and 20 aircraft' (5/20) norm for domestic carriers to be able to fly international. 
 The promoters of <keyword id="6356167" type="COMPANY" weightage="100" keywordseo="GoAir">GoAir</keyword>, <keyword id="6500654" type="PERSON" weightage="100" keywordseo="Nusli-Wadia">Nusli Wadia</keyword> and <keyword id="145370" type="PERSON" weightage="100" keywordseo="Jeh-Wadia">Jeh Wadia</keyword>, were part of a delegation that met <keyword id="210147" type="PERSON" weightage="100" keywordseo="Mahesh-Sharma">Mahesh Sharma</keyword>, the Minister of State for Civil Aviation on Tuesday. The delegation was as part of a Federation of Indian Airlines (FIA) team and SpiceJet Chairman Ajay Singh was also present for the meeting. 
 
As per ET sources, the Wadias argued before the minister that a lot of foreign nations respect their domestic airlines and give them priority over foreign carriers, and this being a new government should know the expectations that people have. 
 As per the existing guidelines, only those airlines that have been flying within India for five years or have more than 20 aircraft are allowed to fly on international routes, but the civil aviation ministry is considering scrapping the rule, which would benefit two Tata Group-promoted airline companies - <keyword id="2467342" type="UNKNOWN" weightage="100" keywordseo="Vistara">Vistara</keyword> and AirAsia India. However, Nusli Wadia-owned GoAir, IndiGo and SpiceJet are more likely to benefit if the rule stays as is. Therefore, even though the Tatas and the Wadias have been close allies for a long time, this issue is seeing them standing on opposite sides. 
 
<a href="https://c2.staticflickr.com/4/3388/3638338830_637f68d63b_b.jpg">Image source</a>

The Wadias don’t want the 5/20 aviation rule to be scrapped, even if it means huge losses to close friends, the Tatas

New Delhi, Jan 24 () The Enforcement Directorate (ED) has issued fresh summons to senior executives of Air Asia airlines, including CEO Tony Fernandes, for questioning next month in connection with a money laundering case, officials said on Friday.
 As per sources, the central agency has asked Fernandes to appear before the investigating officer of the case here on February 5, his deputy and former Deputy Group CEO of Malaysia-based Air Asia Berhad Bo Lingam on February 3 and R Venkataramanan, Director Air Asia India Ltd, Bengaluru, on February 10.
 Few others linked to the present and past management of the airline have also been asked to depose.
 The ED had earlier asked some of these executives to appear this month but after some failed to appear or sought additional time, new dates have been given, they said. 
The summons have been issued under the PMLA and as per sources the executives will be questioned and their statement recorded in connection with the investigation.
The agency had registered a case under the PMLA against the airline and its officials in May, 2018. 
 This criminal case was filed two days after CBI filed a criminal complaint to probe these allegations.
Probe in the case is related to allegations that the airline tried to manipulate government policies through corrupt means to get international licence for its Indian venture Air Asia India Limited.
The ED is also probing this case under the Foreign Exchange Management Act (FEMA).
 Air Asia India at present has flights connecting 21 domestic destinations and as per a aircraft fleet tracking website, it has 29 Airbus A320 planes.
Investigation in the case was initiated on the basis of allegations of ousted Tata Group chairman Cyrus Mistry that fraudulent transactions of Rs 22 crore, involving non-existent entities in India and Singapore, were carried out in an instance involving the airline.
The CBI and ED, in their criminal FIRs, had booked Group CEO of Air Asia Fernandes, Tharumalingam Kanagalingam also known as Bo Lingam, former Deputy Group CEO of Malaysia-based Air Asia Berhad, and Venkataramanan, Director Air Asia India Ltd, Bengaluru, besides companies Air Asia India Pvt Ltd and Air Asia Berhad.
The allegation pertains to Air Asia officials and others allegedly trying to manipulate government policies through corrupt means to get international licence for its Indian venture Air Asia India Limited.
The CBI had alleged that Venkataramanan was lobbying in the government to secure mandatory approvals, some of them through "non-transparent means", including the then Foreign Investment Promotion Board (FIPB) clearance, No Objection Certificate and the attempt for removal or modification of 5/20 rule.
It is alleged that to be eligible for international operations, the company was required to have five years of experience and fleet of 20 aircraft as per 5/20 rule.
The company is yet to get international flying permit.
Fernandes wanted it to fly internationally from the day of getting the flying permit in May, 2014, the CBI complaint had alleged.
He and his local Indian partner Tata Sons through their nominee Venkatramanan would lobby in government to get all approvals including FIPB clearance and amend or removal of existing 5/20 rule for international operations, the CBI alleged.
The CBI had also named Rajender Dubey, Director of Singapore-based HNR Trading pvt Ltd, Sunil Kapur, Chairman Total Food Services, Mumbai and Deepak Talwar, Principal and Founder DTA consulting (deported to India last year from Dubai), New Delhi and the company HNR Trading as alleged lobbyists who used their influence to get 5/20 rule relaxed "before General Elections of 2014".
 Air Asia had denied any wrongdoing after the CBI filed the case and carried out raids at multiple premises.
 It is alleged that Air Asia India Ltd -- a joint venture between Tata sons and Malaysian company Air Asia Berhad -- was indirectly controlled and operated by the Malaysia group, and particularly Air Asia Berhad violating various existing norms of erstwhile FIPB, now defunct, under the Union finance ministry. NES NES DV
DV

ED issues fresh summons in Air Asia PMLA case

According to media reports, <keyword id="1625599" type="UNKNOWN" weightage="20" keywordseo="Air-Asia-India">Air Asia India</keyword> is planning to start operation from Delhi from February 2015. AirAsia is likely to deploy two Airbus A320 planes in Delhi and it is mulling to operate flights on Delhi-Bengaluru and Delhi-Goa routes. 
 <keyword id="86568" type="COMPANY" weightage="20" keywordseo="Air-Asia">Air Asia</keyword> India’s Chief Executive Officer Mittu Chandilya said the airline is considering the plan, but has not taken a final decision so far. However, he refused to divulge any details about the potential routes. 
 
AirAsia India had launched its service in June this year and it has two Airbus A320 planes. It is likely to add 8-10 planes in 2015. It commenced its domestic operations with a Bangalore-Goa flight and flights to Chennai, Kochi, Chadigarh, Jaipur and Pune. 
 
Earlier, AirAsia had said it would not operate flights on Delhi and Mumbai routes due to high airport charges. But now it seems to have changed its plan. 
 
"If AirAsia is to be an effective national carrier it will have to have a hub in North India too," a newspaper reported.

AirAsia India Planning To Operate Flights From Delhi

New Delhi, Jan 16 () The Enforcement Directorate (ED) has summoned senior executives of Air Asia including CEO Tony Fernandes for questioning in connection with a money laundering case, officials said on Thursday.
The agency had registered a case under the Prevention of Money Laundering Act (PMLA) against the airline and its officials in 2018.
Officials said while Fernandes has been summoned on January 20, few others have also been asked to depose for questioning in the following days.
The fresh summons have been issued to take the probe forward, officials said.
The ED probe is related to allegations that the airline tried to manipulate government policies through corrupt means to get international licence for its Indian venture Air Asia India Limited.
The ED case was registered after the CBI filed an FIR to probe these allegations.
The ED is also probing this case under the Foreign Exchange Management Act (FEMA).
Investigation in the case was initiated on the basis of the claims of ousted Tata Group chairman Cyrus Mistry's allegation that fraudulent transactions of Rs 22 crore, involving non-existent entities in India and Singapore, were carried out in an instance involving the airline.
The CBI and ED, in their criminal FIRs, had booked Group CEO of Air Asia Fernandes, Tharumalingam Kanagalingam also known as Bo Lingam, former Deputy Group CEO of Malaysia-based Air Asia Berhad, and R Venkataramanan, Director Air Asia India Ltd, Bengaluru, besides companies Air Asia India Pvt Ltd and Air Asia Berhad.
The allegation pertains to Air Asia officials and others allegedly trying to manipulate government policies through corrupt means to get international licence for its Indian venture Air Asia India Limited. NES DV
DV

ED summons Air Asia executives, CEO Fernandes in PMLA case

Indian low-cost airline <keyword id="6358032" type="CITY" weightage="80" keywordseo="SpiceJet">SpiceJet</keyword> has announced yet another discounted scheme that offers 10 lakh tickets at prices as low as Rs 999. The carrier has rolled out over 10 such price cuts since the beginning of 2014. The discounts allow passengers to travel at much lower prices across various domestic routes between January 6 and October 24, 2015. Passengers can avail these discounts only on the bookings made between July 8 and July 10.
 According to a post on SpiceJet’s website, the airline has termed its latest ticket sale as ‘lower than train fares’. Notably, the carrier owned by <keyword id="340571" type="COMPANY" weightage="80" keywordseo="Sun-Group">Sun Group</keyword> of India continues to incur huge losses on its balance sheet. The latest discount offered by SpiceJet is an attempt to gain market share, especially with the competition intensifying in the domestic aviation sector with the entry of <keyword id="1625599" type="UNKNOWN" weightage="80" keywordseo="Air-Asia-India">Air Asia India</keyword> and <keyword id="1913046" type="COMPANY" weightage="80" keywordseo="Tata-SIA">Tata-SIA</keyword>, believe Industry experts. “Competition has intensified in the air market with the entry of new players, and this sale announcement by SpiceJet targets shoring up bookings in advance, so as to sustain their market share in the face of increased competition that is likely going forward,” said Indian online travel agency <keyword id="143718" type="COMPANY" weightage="80" keywordseo="Yatra-com">Yatra.com</keyword> president <keyword id="332366" type="PERSON" weightage="40" keywordseo="Sharat-Dhall">Sharat Dhall</keyword>. Rajesh Magow, co-founder and CEO-India, <keyword id="54613" type="COMPANY" weightage="80" keywordseo="makemytrip">MakeMyTrip</keyword>, said, “With <keyword id="6375796" type="UNKNOWN" weightage="80" keywordseo="airfares">airfares</keyword> cheaper than railway fares, we expect travellers to upgrade the transport-leg of their holiday to flight instead of rail or road.” (Image: <keyword id="71187" type="COMPANY" weightage="40" keywordseo="Wikipedia">Wikipedia</keyword>)

Price War: SpiceJet Offers 10 Lakh Tickets For Rs 999

The <keyword id="2690596" type="UNKNOWN" weightage="20" keywordseo="Indian-air-travel-industry">Indian air travel industry</keyword> is in the middle of a significant metamorphosis and not the last one that we will witness in a lifetime. From bankruptcies and desperate measures to raise survival equity to market share fights driven by price wars (not customer experience), we have seen it all. Change is good and is often inspired by the experiences of the recent past. Some may question the viability of the sector where 4 out of 5 national carriers are in the red, but as <keyword id="172834" type="PERSON" weightage="20" keywordseo="Oscar-Wilde">Oscar Wilde</keyword> said “We are all in the gutter, but some of us are looking at the stars”. There are five broad themes likely to play out as we see the sector emerge into a developed sub-economy. 
 
 Clearer market segmentation and better customer experience 
 For the first time in 10 years, we will finally experience the difference between a low-cost and full service airline as new airlines such as Vistara look to redefine what a true full service experience should be. This will have a trickle-down effect on both full service and low-cost carriers who will become crisper in defining their service positioning and experience for the travelers. The challenges in clearer segmentation, however, would still remain as most domestic flights are 2 hours long and there is only that much wow factor possible in a short duration flight where 15 minutes each side are spent on taking off and touching down. 
 
Price neutralization will become a viable short-term marketing strategy Full service carriers will match prices with low-cost carriers to eat into their market share by offering more value per buck. <keyword id="6358200" type="CITY" weightage="20" keywordseo="Jet-Airways">Jet Airways</keyword> is likely to lead this trend as it has already consolidated all its three sub-brands into a unified full service identity from December 2014 emerging as the de-facto market leader in full service operations. This should gradually erode the market share of democratic airlines like <keyword id="6354706" type="CITY" weightage="20" keywordseo="Indigo">Indigo</keyword> who get a significant number of affluent travelers mainly because of their consistent on-time performance and lack of differentiated alternatives. 
 
New challengers will emerge in each category as incumbent leaders strengthen their hold We are not likely to see new market leaders in the short term, but new entrants like <keyword id="86568" type="COMPANY" weightage="20" keywordseo="Air-Asia">Air Asia</keyword> and Vistara will emerge as strong challengers to the struggling number 2s and 3s in each category. They will have the benefit of learning from more than one case study of ‘how not to run an airline company in India’. They will work efficiently from grounds up from day one making the Indian airline industry more broad-based and sustainable. 
 
Indian aviation sector will become more international, globally-owned and sophisticated With 49% <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> allowed in domestic airlines by foreign carriers, there would hardly be a performing Indian airline that is not internationally owned. This will not only enhance efficiencies in operations through learning from global operators, but will also infuse in the much needed financial strength to scale up in a fast growing sector. Indian origin airlines will also become more visible in international skies and some of them will have the opportunity to transform themselves into global brands. 100% foreign equity allowed in airport development should see some of the Indian airports emerge as global hubs in the coming years, which in turn will enhance the viability, resilience and reputation of the Indian aviation sector. 
 
Rise of the regional airlines After several futile ventures, perhaps, the most ignored and likely to be the most dominant trends of the times to come, will be the rise of well-funded, well-branded regional airlines. Not that we haven’t heard of South-based Air Costa and Air Pegasus, a slew of others like Turbo Megha, Air Carnival and <keyword id="2546323" type="ORGANIZATION" weightage="20" keywordseo="Zav-Airways">Zav Airways</keyword> are looking to establish regional air prints in India. It is in no way going to be an easy ride for them as trust is hard to come by in airline travel. However, if they can convince travelers and other stakeholders about their efficacy and long term sustainability, we will finally see affordable regional travel take a sky leap forward in India. 
 
(About the author: The article has been written by Saurabh Uboweja, CEO Brands of Desire.) 
 
Image: indiatimes

5 Trends That Will Redefine Indian Air Travel

<ul><li>Entrepreneur <keyword id="82750" type="PERSON" weightage="20" keywordseo="Tony-Fernandes">Tony Fernandes</keyword>, the man who built <keyword id="6358246" type="UNKNOWN" weightage="20" keywordseo="AirAsia">AirAsia</keyword> is facing trouble amid bribery allegations. </li><li>He bought a state-owned AirAsia which was sinking fast into a whirlpool of debt for 26 cents in 2001 — and and turned into a billion dollar company. </li><li>He turned it around from $11 million debt to break even in two years. </li><li>In September 2019, the 55 year old Fernandes announced his retirement to let the next generation leaders in AirAsia to come to the forefront. </li></ul>Tony Fernandes’ rise to the top mirrors that of a Bollywood movie where a hero left with a single coin soon turns into a millionaire. After all, he bought a state-owned AirAsia which was sinking fast into a whirlpool of debt for 26 cents in 2001 — and and turned into a billion dollar company. But his fall also came as dramatically after aerospace company <keyword id="6356166" type="COMPANY" weightage="20" keywordseo="airbus">Airbus</keyword> said that it paid $50 million to the Malaysian airline. He had to step down as the CEO temporarily for 2 months, and denied the allegations. Fernandes who promised to cooperate with the authorities is no stranger to controversy. His company which has in a joint venture with Tatas in India was also <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/more-individuals-under-cbi-lens-for-airasia-lobbying/articleshow/64626271.cms?from=mdr">investigated for playing </a>a part in relaxing a rule that needs an airline to be operational for five years with 20 planes before they are allowed to fly overseas. <keyword id="6356895" type="PERSON" weightage="20" keywordseo="cyrus-mistry">Cyrus Mistry</keyword>, the former chairman of <a href="https://www.businessinsider.in/business/corporates/news/cyrus-mistry-warning-to-ratan-tata-on-jlr-tata-motors-airasia-and-telecom/articleshow/72873129.cms">Tata Sons</a> too had expressed discomfort with his association with the airline. “Board members and trustees are also aware that in the case of <keyword id="86568" type="LOCATION" weightage="20" keywordseo="Air-Asia">Air Asia</keyword>, ethical concerns have been raised with respect to certain transactions as well as the overall prevailing culture within the organization,” he said in a letter to the board. In Malaysia too, Fernandes is known to be close to many politicians and even painted one of the parties’ slogans on the plane — <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/double-trouble-airasia-ceo-tony-fernandes-faces-tough-time-both-in-india-and-malaysia/articleshow/64431461.cms?from=mdr">landing him in trouble</a>. While many of his maverick branding bets gave wonderful results, they also landed him in trouble enough times. The boy who wanted to be a pilot After completing his education from Britain’s Epsom College, Fernandes worked for Richard Branson and entertainment companies like Warner Music. But his childhood dream of becoming a pilot brought him into the aviation sector. After he bought the airline, he turned it around from $11 million debt to break even in two years. It started with two planes but now has a fleet of over 260 planes and flies as many as 100 million passengers. A major part of his success comes from his consistent efforts in building a brand. “The first thing you need is a great product, the second thing, you got to invest in branding. There are so many great ideas, and nobody knows about them,” he had <a href="https://www.campaignindia.in/article/tony-fernandes-airasia-plans-from-airline-to-lifestyle-brand/453037">said at a conference</a> in Hong Kong. Early bird technology investments Fernandes lived by the idea of investing in events where he saw potential — which expanded his clientele. He spent generously on sponsorships — including a football club <keyword id="6034" type="COMPANY" weightage="20" keywordseo="Manchester-United">Manchester United</keyword>. And, this was when AirAsia had merely seven planes. It had also invested in esports. He also made a personal investment to create a football club <keyword id="91917" type="ORGANIZATION" weightage="20" keywordseo="Queens-Park-Rangers">Queens Park Rangers</keyword> (QPR) in London. According to Forbes, he has a net worth of $530 million. He did not hold back even when the time came to invest in technology. AirAsia was one of the early birds to deploy cloud technologies with an online ticketing system. This data of customers turned out to be goldmine — which was then used to implement technologies like facial recognition. “I didn’t see the digital revolution that was to come. Now we have a massive amount of data, not just in Malaysia but across ASEAN,” he said. Dating on the plane Since then, the airline has introduced several consumer friendly initiatives like partnering with the dating apps for the passengers to ‘connect’ on the plane. Come 2019, the airline also became the first to set up a restaurant selling in-flight fare on land. “Who would have thought: airline food to restaurant? ASEAN’s first fast food restaurant,” <a href="https://www.businessinsider.sg/tony-fernandes-has-quit-twitter-herere-his-3-most-memorable-posts-of-2019/">Fernandes had said</a>. In September 2019, the 55 year old Fernandes announced his retirement to let the next generation leaders in AirAsia to come to the forefront. “For clarity: I will remain CEO of AirAsia group and CEO of AirAsia.com. Rest of my positions in the boards and management will go to my young amazing leaders. So so many of them. Leadership is about succession planning, always giving youth a chance,” he said. But, it looks like everything is not going according to his plans. See also: <a href="https://www.businessinsider.in/thelife/personalities/news/britannia-owner-nusli-wadia-cases-against-ambani-and-ratan-tata/articleshow/73264154.cms">Billionaire Nusli Wadia could be one of the rare men who battled Ambanis and Tatas and lived to tell the tale</a> <a href="https://www.businessinsider.in/thelife/personalities/news/kobe-bryant-was-a-big-iphone-guy-with-investments-in-alibaba-and-video-games-on-nintendo/articleshow/73654930.cms">Kobe Bryant was a 'big iPhone guy' with investments in Alibaba and video games on Nintendo</a> <a href="https://www.businessinsider.in/thelife/personalities/news/youtuber-bhuvan-bam-heads-to-world-economic-forum-in-davos-to-tell-his-story/articleshow/73473149.cms">How far can you go with YouTube — A Delhi college boy reached Davos in 5 years</a>

Tony Fernandes — who bought an airline for 26 cents and turned into a billion dollar company — lands in trouble

After the <keyword id="8555" type="CITY" weightage="80" keywordseo="Tata">Tata</keyword>’s and <keyword id="6368386" type="COMPANY" weightage="80" keywordseo="Singapore-Airlines">Singapore Airlines</keyword> collaboration for <keyword id="3658" type="COUNTRY" weightage="80" keywordseo="India">India</keyword>, it seemed like <keyword id="86568" type="COMPANY" weightage="40" keywordseo="Air-Asia">Air Asia</keyword> will hit a speed bump and might be grounded for long. Then there was the Subramaniam Swamy’s petition in the Delhi high court to put a stay on the launch of the airline, which did not go too well in court. The Delhi High court has refused to put a stay on the launch and has agreed to hear the matter again on Dec 11. 
 At the moment the launch of the Airlines on the India turf is imminent. The Malaysian budget airline will get a regular air operators <keyword id="6360948" type="UNKNOWN" weightage="80" keywordseo="permit">permit</keyword> in Jan and can start the first of its flight then. Arun Misra, Director General and Civil Aviation confirmed that the airlines will get its permit in the next two months, which will enable them to operate India wide flights. 
 
Air Asia has plans to first operate in just South India. However, they will not add too many flights on the Indian sector and will test the waters first. Tier 2 and 3 towns seem to be favoured by the airlines, which will operate with an initial staff of modest 300 people. If the company does well and increases its operations in India, we just might see a budget airline price war in some sectors. However, that is still a far-off dream.

Air Asia Likely To Fly The Indian Skies In Jan 2014

<ul><li><keyword id="6355725" type="ORGANIZATION" weightage="20" keywordseo="tata-group">Tata Group</keyword> Chairman N Chandrasekaran said he will get his team to evaluate a bid for <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword>. </li><li>The once-Tata owned Air India today has a massive debt of ₹58,351 crore. </li><li>Meanwhile, both of Tata’s current airlines – <keyword id="2467342" type="PERSON" weightage="20" keywordseo="Vistara">Vistara</keyword> and AirAsia – reported losses for FY19. </li></ul>One of India’s biggest business conglomerate Tata Group might consider bidding for the struggling Air India. In an <a href="https://timesofindia.indiatimes.com/business/india-business/will-ask-my-team-to-look-at-bidding-for-ai-tata-group-chief/articleshow/71883484.cms">interview with TOI</a>, Tata Group Chairman N Chandrasekaran said that he will get his team to look into the matter. “Ideally it should be a Vistara decision, not a Tata Sons decision. I’m not going to run a third airline (in addition to Vistara and AirAsia) unless we merge. There are issues. I will never say yes or no. I don’t know,” he told TOI. Interestingly, Air India was run by the Tata Group before the Indian government acquired a 49% stake in the airline in 1948. Tata Group to bid on Air India would expand its exposure to the airline industry. Two of its own airlines – Vistara and AirAsia are running in losses. In the financial year ending March 2019, Vistara’s<a href="https://www.business-standard.com/article/companies/vistara-loss-doubles-to-rs-831-crore-amid-tough-operating-environment-119081401877_1.html"> losses</a> doubled to ₹831 crore. Vistara is a joint venture between the Tata group and Singapore Airlines. Meanwhile, <keyword id="86568" type="COMPANY" weightage="20" keywordseo="Air-Asia">Air Asia</keyword> too is struggling to keep up. Its <a href="https://www.financialexpress.com/industry/air-asia-india-losses-rise-five-fold-in-fy19/1719013/">losses</a> amounted to ₹670 crore, almost five times over its losses in the previous year of ₹125 crore. Tata Group runs AirAsia India in a joint venture with Malaysia-based AirAsia Berhad. For FY19, Air India too posted a massive <a href="https://m.economictimes.com/industry/transportation/airlines-/-aviation/air-india-posts-rs-4600-cr-operating-loss-in-2018-19-aims-operating-profit-this-fiscal/articleshow/71136113.cms">operating loss</a> of ₹4,600 crore, while its net loss stood at ₹8,400 crore. Air India, which has been struggling to find a bidder after the government said that it plans to sell 100% stake in it. It has a massive debt of ₹58,351 crore and recently state-owned oil companies <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/pay-monthly-or-will-cut-fuel-supply-at-6-airports-from-oct-18-oil-companies-to-air-india/articleshow/71525811.cms?from=mdr">sent a letter</a> asking them to pay up dues or they will stop supplying aviation turbine fuel (ATF).

Tatas may look at bidding for Air India even as its two airlines strap on losses

With the sudden news of a tie-up between <keyword id="8555" type="CITY" weightage="80" keywordseo="Tata">Tata</keyword> and <keyword id="6368386" type="COMPANY" weightage="60" keywordseo="Singapore-Airlines">Singapore Airlines</keyword>, <keyword id="86568" type="COMPANY" weightage="40" keywordseo="Air-Asia">Air Asia</keyword>’s deal with the Tata’s seem to be in jeopardy. Tata have been in a strong coalition with the low fare air carrier owned by <keyword id="82750" type="PERSON" weightage="40" keywordseo="Tony-Fernandes">Tony Fernandes</keyword>, and looked like the perfect partners to bring the air travel costs down in India (at least in the not-so-frequent sectors). 
 However, the move between Tata and SIA has sent jitters to Air Asia partners in India. <keyword id="230622" type="PERSON" weightage="40" keywordseo="Arun-Bhatia">Arun Bhatia</keyword> who is the third partner in the venture wants to bring the issue up in the next board meeting and sort things out. We might even see him asking to take over Tata’s share all together. 
 
Tata had plans to enter the aviation industry since more than a decade now. Alliance with SIA would be the perfect way to enter the full fare segment and become a well known name in Indian and international air circuit. SIA is part of the star alliance group. It is one of the best and most preferred airlines to travel world over. SIA and Tata have pledged to combine 100 million USD for the new endeavour. 
 
However there are few challenges in this tie-up that require SIA to go through some Indian regulatory approvals. But whatever the case be, no body likes a partner making an alliance in a competing business. All eyes are now on the next Air Asia Board meeting, which should clear the air of any speculation.

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