Air India is getting ready to leave its bureaucratic baggage behind and reshape itself to face growing competition.
With the skies opening up and making monopoly a history, the PSU airline is planning to hire a change management consultant to facilitate makeover and face competition in the best possible manner.
Over 20 global management consultants have submitted their presentation to Air India management and the airline is busy shortlisting them.
Says Air India chairman and managing director Vasudevan Thulasidas: "The changes in the environment and organisation need to be channelised in a manner that company and management are benefited at the maximum."
He pointed out that change management consultant would help in preparing and equipping the company to meet the future challenges. Integration of the entire operations in effective and efficient way would be the prime focus of this process.
Human resources will be one of the key aspect in managing this change. Other factors include planning of flights, engineering facilities and manageria; functions.
"The objective of this process is to make a worthwhile change. The entire packages and products of the airline is translated into best services with warmth to passengers flying Air India," Thulasidas said.
Air India chief said this process will focus on skill of the people and team work. The professional skill are aligned with team work which will result in best service to industry in all terms.
"Regarding equipment, Air India is on the acquisition spree. Aircraft will not be a problem but the focus is on human resources," he said.
Air India is acquiring 68 aircraft from the Boeing Company and is all set to hit the capital market with an initial public offer (IPO) soon. Moreover, the airline will merge Indian with itself in the current fiscal, according to senior government officials.
"Initially, this change management was only aimed at Air India. But with the merger on the cards, the change management consultant will have to take post merger scenario and other changes into consideration," Thulasidas added.
Meanwhile, Air India had initiated a rebranding exercise which will look into complete aspects of the services offered by Air India.
Sources said the brand consultant would look into food, reading material, hospitality, training for crew and their uniforms.
"This will be a rejuvenation exercise and the airline may appoint one or more brand ambassadors," they added.
To hike fuel surcharge
Rising Aviation Turbine Fuel prices have forced Air India to increase fuel surcharge in select routes including the US and Europe, with immediate effect.
"We have increased the fuel surcharge to $65 per passenger from $55 in the UK and Europe," a senior Air India executive said.
The fuel surcharge for the US and Canada sector has been increased to $115 per passenger from $100, he said.
The fuel surcharge for other sectors remain unchanged.
Significantly, the fuel bill of Air India for 2004-05 was Rs 2,000 crore (Rs 20 billion), with 55 per cent of its fuel requirement being uplifted overseas.
Sources said the fuel bill for the last year could be over Rs 2,500 crore (Rs 25 billion).
"The idea behind fuel surcharge is to offset the rise in the fuel prices. The oil prices is hovering around $72 per barrel," airline sources said.
Air India was the last airline to hike fuel surcharge, they said. Earlier, international airlines including British Airways, Sri Lankan Airlines, Lufthansa and Singapore Airlines have already increased the fuel surcharge in the wake of spiralling oil prices.
Meanwhile, Air India has become the first airline in India to hedge its jet fuel price risk by using derivatives contract on international commodity markets for the first time.
