Business: Air-India

Q & A

CMD AIR-INDIA
VASUDEVAN THULASIDAS

In an interview with Editor Sayantan Chakravarty, Air-India’s CMD V. Thulasidas spells out how and why Air-India has managed to become one of the most respected airlines in the world

“OUR FLEET HAS EXPANDED. WE FLY MANY MORE DESTINATIONS. THIS IS OUR BIGGEST ACHIEVEMENT”


You have been elected to the Board of Governors of I.A.T.A. It is a prestigious achievement. What does it mean for Indian aviation?
Today, in terms of growth rate, Indian aviation is one of the highest in the world. The rest of the world looks at India as a major player. Given the importance of what is taking place in the Indian aviation sector, the I.A.T.A. meet was addressed by the Civil Aviation minister, the only such minister present. My presence in IATA's Board of Governors will give us a strong voice, and help us capitalize on our strong points.

You have received EOIs from interested parties vying to be consultants for the merger of Air-India and Indian. Any deadlines?
The time frame for a merger will be provided by the consultant eventually selected for the job. The final approval for the time frame will come from the Government. I’ve read statements saying that the Government is interested in the merger by the end of March 2007.

The IATA Operating Safety Audit (OSA) certification is another feather in the cap of Air-India. This is the second time the certification has been received under your leadership. Your comments…
We were among the first 12 airlines to get the certification as a result of a voluntary exercise, not because it was compulsory. Our safety records speak for themselves. We trained our auditors internally as we were unable to get training slots from IATA. Air-India is the only air carrier in India which has this certification.

Are there plans to have a subsidiary company for the merged Air-India and Indian entity?
The new merged airline can have a subsidiary. Both airlines are planning to have subsidiary companies for maintenance, repair and overhaul.

You have made it clear to all that productivity and profitability is the key to future success and stability of Air-India…
Absolutely. Our profits have gone up even though we have paid nearly Rs 1,000 crore extra in 2005-06 by way of higher purchasing costs for aviation turbine fuel. Then there have been increased operations. Our profitability would have gone up had ATF prices not climbed sharply.

Which is one promise you made right at the outset and you can be proud of having honoured…
I had stated in my very first media conference in December 2003 that if Air-India were to survive, it needed to fly more and have more aircraft. Today, we have a fleet of 45 aircraft, orders have been placed for another 68. Several more destinations have been added to our flying map. We honoured that single-most important commitment.

June 2006

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