AI floating on air as dream fulfilled

Anand Pillai Tuesday 12th July 2016 08:25 EDT
 
 

Finally, a dream fulfilled for Air India after it announced the much-awaited London-Ahmedabad non-stop flight from Heathrow starting August 15, 2016. The airline could not have asked for a better campaign line (A Dream Fulfilled) as it not only fulfils AI’s dream but also realises the dream of the over 6 lakh Gujaratis in the UK as also the dream of Asian Voice and Gujarat Samachar which has relentlessly campaigned, especially its Editor/Publisher Mr CB Patel, for re-starting the London-Ahmedabad flight. Ms Tara Naidu, Air India Regional Manager for UK & Europe, opens up to Rupanjana Dutta and Anand Pillai in an exclusive interview.   

 

Have you had any response from the public regarding the non-stop flight?

Little bit. It’s been good, but I don’t think everybody knows about it. Hopefully we will start some more advertising. They will come to know about it.

 

Since it’s a non-stop flight without any stoppage in between, will it affect the fares then?

No, we haven’t increasd the fares. The existing normal fare to Ahmedabad applies on this flight. All people who have been booked on the London-Ahmedabad flight before the August 15 announcement will be automatically included in the non-stop flight without any increase in fares. But in December we would have a minimal 30 pounds increase because that’s a peak period.

 

Has Brexit affected AI?

Not yet, I would say. I don’t know how much will it affect? To some extent I can see the difference in cargo, because a lot of it moves from Europe. You can see the rates have fallen drastically. Market has become much slower. I can see the immediate effects on cargo. For passenger it hasn’t affected much. But I think in the long run it will affect those whose businesses depend on trade with Europe that suffered financially following Brexit. Automatically their spending will be reduced. Plus those going to India will have to shell out more because of the devaluation of pound. Hopefully the bright side is that we are hoping India picks up because it will be less expensive to the UK for a holiday. So we are hoping in-bound tourism will increase.

 

Why the non-stop flight was not started in December 2015 itself?

All along AI wanted to start but there were resource constraints – mainly aircraft, crew. It’s not easy to do it at short notice. At that time it was said we will do it in due course. This (August 15, 2016) was the earliest when everything worked out.

 

At present, how AI is doing financially?

It’s much better than it was. Hopefully we will do even better. Of course, fuel prices have helped us because they haven’t really gone up that much. Plus we are happy with the fuel-efficient Dreamliner aircraft. That’s keeping the cost under control. In fact, that’s good for all airlines. The competition has increased, especially for this market from indirect operators.

Any particular challenge you are facing with this non-stop flight?

Well, filling up the front of the aircraft is a challenge when you go to the non-metros whether it’s Amrtisar or Ahmedbad flights. Even for Birmingham we face that challenge. So that is going to be a little tough. We do have some regular business class travellers to Ahmedabad even without the non-stop. I think it has picked up. I am hoping by August 15 we will have more people in business class. And the other advantage, I would say, is that it’s shared with Newark that is Newark-Ahmedbad. If it fills the half, then we have only half the aircraft to fill. It’s a Dreamliner aircraft which is cost-efficient. So we have a fairly good chance of success.

 

Some of the Malaysia Airlines planes had mysteriously vanished in the recent past. What AI is doing to prevent such incidents?

For AI safety is of prime importance. It’s the first and the foremost thing. In any case we don’t fly over any of the conflict zones. We don’t expect any of these problems. We have continuous safety audits. In fact, we have a safety audit where we will be having a team of 10 people coming to the UK in August. So it’s constantly checked. They come down to the stations to check whether the procedures are followed – whether it’s engineering, operations, traffic and everything that affects it.

 

AI is often criticised for not having very young air hostesses on board, especially the attire they wear is not moving with the times. How do you respond to that criticism or is there any makeover plans?  

There are two things there. You will find that some of the air hostesses are old. You will also find some very young crew on board. It’s a 50-50 ratio. Fifty per cent will be more mature, while the rest half will be youngsters. And I think that combination is required because those with experience can anticipate what a passenger wants and serves their needs. We get very good feedback about them – they serve the passenger very well. At the same time 50% of the crew is young today. And we are going in for further recruitment.

What AI has to offer in terms of seating comforts, cuisine and entertainment as opposed to Middle East airways?

Everything is absolutely state-of-the-art. All the aircraft are new whether it’s the Dreamliner or Boeing 777. All of them have personal in-flight entertainment system for each seat. You can view whichever film you want. We have a huge choice – English, Hindi, regional languages like Marathi, Gujarati, Telugu, Tamil, Malayalam, Bengali, etc. We have something to cater for the different types of market segments. We have films, documentaries, news section, comedy – as a passenger you can choose, you have a personal set with the TV, you can stop it when you want, rewind it at your wish, it’s like an individual entertainment system for everyone.

 

Are there any other non-stop London flights connecting other Indian cities (like Kochi, Chennai, Kolkata) in the pipeline?

Well, from Heathrow it is unlikely because of the slot constraints. Heathrow, as you know, is saturated. You cannot have any new flights over there. We won’t get the slots. But we are looking at expansion for the whole of Europe and the UK. We have 6 more Dreamliner aircraft on order. Of the 27 we have ordered, we have got 21. Six more are yet to come. Probably Madrid is next on the cards – that is Delhi-Madrid. And various routes are being evaluated. In fact, many of the airports in the UK have approached me and I am in touch with them – be it Manchester, Edinburgh, Glasgow or Gatwick. So that’s being evaluated. Many routes in Europe are being evaluated. Depending on the economic feasibility we will be expanding in the UK as well. And the thing about this market is that with Dreamliner aircraft – the UK is the farthest point to which it can operate. So it makes sense to operate Dreamliner in this market.

 

For the London-Ahmedabad non-stop flight, what are the various options for meals?

There are various options available for meals. Apart from Asian vegetarian, we also have Jain meals. In fact, there is something called the “Gujju Meal”. You just have to book it at the time of reservation.

 

Is London-Ahmedabad route a profitable venture for AI?

Well, as of now, we have to wait and see. But I am optimistic. There are various reasons – fuel price, Dreamliner is cost-efficient, we will see more and more Gujaratis travelling in business class. It makes a big difference to the yield. Fifty per cent of the aircraft will be filled by Newark. It’s a Newark-London-Ahmedabad flight. Only 50% has to be done from here. Considering all these, I am hopeful it will be a successful venture.

 

Has Air India-Indian Airlines merger helped the airline?

There are pluses and minuses. Various factors are to be considered in terms of schedules, network. There are some advantages from passenger point of view – better network, better connectivity, smoother connections. There have been challenges in terms of costs because when you have two big organisations – both have ordered aircraft, both have taken loans for that. As a result, the financial liability is so huge and that falls on to that one organisation so it’s something to overcome.

 

 

AI chairman Ashwani Lohani says the airline has some Rs 28,000 crore of accumulated losses and it will take decades to wipe that off. What do you have to say about that?

If you talk about total loss, yes it’s true. But in terms of operational at least we have turned the tide. And hopefully it will be plus plus after that. Operationally we are still profitable. But to wipe out the interest burdens and things like that will take long time.

 

Sometime in January, some passengers in the London-Ahmedabad direct flight were disembarked from the aircraft and they had to again go through the security checks. What happened?

It happened on a few flights. On some flights there were some crew issues. If the next set of crew has not come, then passengers cannot stay on board. It’s a Directorate General of Civil Aviation (DGCA) requirement. We have to disembark them. When they disembark, then they have to go through security checks again and that was the issue.

This time it won’t happen because it’s a non-stop flight. There’s no question of getting off from the flight except at the destination.

 

Why do you think people should travel in AI?

That’s because it’s the best airline. It gives the best value for your money. We have got brand new aircraft, fantastic seatings, in business class in Dreamliners we have 180 degrees flat bed – there’s nothing more comfortable than that. Indian ambience is a key factor. Whether it’s parents travelling or tourists, we always say “Your journey begins when you step on to Air India”. Best food is another attraction. No other airline cooks their food. Others heat up the frozen food. Air India is the only airline where the food is actually prepared in the kitchen fresh. Whether it’s the food, comfort seats, aircraft, connectivity, you will have no other airline that will give you connections into India the way we give. From here we fly 5 times a day from the UK to India. And from Delhi and Mumbai which are our hubs as of now you have connections to so many destinations – cities like Kolkata, Chennai, Hyderabad, Amritsar, Ahmedabad these are all international. So you just straight away get off from the aircraft and get into another for final destination. Customs and immigration are at your final destination which is a USP. Only in Air India you get this. And we have this connectivity over Delhi and to some extent over Mumbai to other parts of the world, especially Bangkok is the most popular holiday destination for this market. We have connections to Kathmandu, we have a good Nepali population here, Colombo for the Sri Lankans and tourists, and Australia (Sydney and Melbourne). We have very good connections over Delhi. All in all, you will get the best product at the best price only in Air India.

 

How has been the response for the London-New Jersey flight?

It’s early to say. We have had some very good and positive response. In fact, if you see some of the mainstream British magazines related to travel, so many of them have praised and said we were just waiting for Air India to come back. I have actually read articles where they say we remember the days when if we wanted to go to New York we just go to Bond Street office in the morning, pick up our ticket from there and go directly to the airport to catch the flight and we never get that service and that price on any other carrier. So they were all so delighted that AI has come back. We need to do a little more of advertising so that everybody is aware that we are back. And we are sure it’s going to be a huge success.

 

Who are your main competitors?

Well, to India it’s to some extent BA, Virgin and Jet Airways. These are the only direct operators on this market. Then we have the indirect operators the Middle Eastern carriers. They are also good competition because they offer a good price. But if you look at purely people travelling from the UK and India, we are number one. That’s because with BA there’s lot of sixth freedom traffic that is people who come from the whole of USA, UK and Europe they hub them over London then they take them to India, that’s what we call the sixth freedom traffic. But the portion they carry between UK and India is very less, the capacity is also limited because they cater to all the other connections. Virgin has pulled out of Mumbai so they have become a marginal player.

 

Will Brexit lead to job losses in AI?

No.

 

Do you think the relationship between the UK and India in this climate will get better?

I think it is one of the positives of Brexit. India being one of the fastest growing economies, there is huge scope for improving trade ties between India and Europe. I hope that happens. And with that travel will increase.

Since Heathrow is up to the brim. What about Gatwick? Do people prefer to go by Heathrow?

People in the north (Wembley Park area, Southall Park, etc.) where we have more Indians, they would prefer Heathrow. They would not want to go to Gatwick. But there is quite a bit of Indian population in Croydon, etc. There would be people who would prefer Gatwick. When you look at an airline that has four flights a day from Heathrow, to start a flight from Gatwick is not the first choice because it means running a parallel establishment. You can’t have the same airport manager running between Heathrow and Gatwick. They are not that close. So we will have to have another establishment, set of staff for Gatwick. It’s not something impossible and not something that we are not going to do it but it’s something that needs consultation. It involves costs as well.

 

Do you have any message for the readers?

Well, we are happy and delighted over the announcement of the London-Ahmedabad non-stop flight on August 15 coinciding with our Independence Day anniversary and we hope the entire Gujarati community takes advantage of it, not only to Ahmedabad but also to US using our London-Newark flight service.


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