Air India †the Virgin Airways Saga Essay

In December 1999, India’s national carrier, Air India (A-I) signed an agreement with Virgin Atlantic Airways1 (VA) by which VA would fly three flights on the Delhi-London route on a code-sharing2 basis with A-I. This was hailed as a significant development for the ailing A-I. The code sharing arrangement was expected to trigger off a price war in the Delhi-London route where British Airways (BA) was a dominant player. According to the agreement, VA would fly three more flights a week on this route by 2001. In July 2000, VA started off with two flights a week on Thursdays and Saturdays from Delhi. It planned to have a third flight by October 2000. However, till late 2001, VA was still flying two flights. A-I did not seem ready to allow VA fly the third flight because A-I too had a flight from Delhi on Monday, the day VA wanted to fly from Delhi. Meanwhile, the Government of India (GoI) granted rights to BA to fly three more flights per week from Kolkata to London. This was in violation of the bilateral pact signed between Britain and India according to which BA and A-I were allowed to fly 16 flights a week to each other’s country. BA was already flying 16 flights a week-seven from Delhi, seven from Mumbai and two from Chennai. In late 2001, VA was severely affected by the downturn in the global aviation industry. VA was finding it difficult to sustain its operations in India with only two flights a week. VA had made it clear that unless it was allowed to increase the frequency to three, its exit from India would be a distinct possibility. Background Note A-I was registered as Air India International in 1948. Later in 1962, the word ‘International’ was dropped and from March 1994, the airline began functioning as Air-India Limited. In 2000, A-I’s network covered 44 destinations (Refer Exhibit I). In addition, A-I had a code sharing arrangement with a number of foreign airlines. These included Air France, Swiss Air, Bellview Airlines, Austrian Airlines, Asiana Airlines, Scandinavian Airlines, Singapore Airlines, Aeroflot, Air Mauritius, Kuwait Airways and Emirates. In the late 1990s, as part of its disinvestment rogramme, the GoI decided to divest 40% stake in A-I and began looking for a strategic partner. The strategic partner would take up 40% stake with only a 26% cap to foreign airlines. Ever since it began operations in 1984, VA focused on international routes. After the airlines maiden flight, from London’s Gatwick airport to Newark on the outskirts of New York, Richard Branson3 added several lucrative routes to his kitty. Till 1999, VA’s route network in the Asian region included Heathrow-Tokyo-Heathrow, Heathrow-Hong Kong-Heathrow and Heathrow-Shanghai-Heathrow. The airline had code-share agreements with Continental Airlines, Malaysian Airlines, and British Midland. In |the late 1990s, Branson was targeting the lucrative Delhi-London route. Every year an estimated 0. 3 million passengers traveled from Delhi to London, which was nearly 40 per cent of the total outbound traffic from India. The only available direct route codes were held by BA and A-I. As a result passengers were forced to take circuitous routes |offered by airlines like Emirates and Royal Jordanian which made them wait for hours at distant airports. Branson’s efforts to woo A-I started in 1997. He said, â€Å"Air-India was once famous for its service and I’d like to think that as well as competing with Air-India we can share with it our experience of making Virgin Atlantic the success it is today. † Analysts felt that A-I would learn from VA’s innovation in hospitality. VA was the first airline to offer a TV monitor with every seat (in every class). It offered in-flight beauty therapy including the services of masseurs, ice-cream cones during in-flight movies and a chauffeured motorcycle service to airports. Also in the offing were email and Internet services. Upper class passengers were provided laptop power leads with every seat, and headsets to reduce noise in the cabin. Besides commercial cooperation on cargo services, yield management, and product development, the arrangement with Branson would give AI’s staffers access to cabin crew training. However, analysts felt that once VA started its operations, it would be an all-out fight to lure passengers and AI would be the worst sufferer. As VA promised to offer tickets at 15 per cent less than BA, a Delhi-London VA ticket would be cheaper than A-I’s. The Deal In 1999, the ministry of civil aviation said that it was willing to consider an agreement between VA and A-I that would benefit both carriers. The agreement was to include a code-sharing arrangement or sharing of A-I flight quotas. The entry of VA on the London-India routes was likely to bring down the fares on the sector. In December 1999, VA signed an agreement with A-I to fly three services a week on a code share basis between Delhi and London from July 2000. The arrangement with A-I was for five years and apart from the initial three flights a week, frequencies, it had agreed to give away the remaining three to V-I by 2001. VA and A-I would share seats on each other’s routes and VA would operate flights to the UK on routes not covered by A-I. VA would also fly on days that were not flown by A-I. Under the terms of the agreement, flights would carry both VA and A-I flight numbers, and both airlines would sell seats on those services in competition with one another. Said Branson, â€Å"Launching flights between the UK and India has always been an ambition of mine. It is a very potent route and currently I see a lack of capacity on this route, which has decreased tourist flow between the two countries. I think between the two airlines – Air-India and Virgin – we will be able to improve the route. † According to some analysts, the GoI was interested in forging an alliance with VA because of the group’s interests in entertainment, music telecom, insurance and financial services. Branson had raised hopes of further investments in publishing, holiday homes and telecom. He said, â€Å"This is just the beginning. We will study the Indian market and see what business is best suited for the market and for us and proceed accordingly. We will see where we can make a difference. A-I had been in the red for a long time and was hoping that the VA venture would improve its bottomline. Said Branson, â€Å"We are paying a significant amount to A-I under the code-sharing agreement, though I would not like to reveal the amount. Let me assure you: Air-India can make a few millions. † However, Air India officials felt that more than the financial gains, it was the pa rtnership that mattered and the move would bring in fresh traffic to the country. Besides traffic, VA’s arrival could also mean reductio in airfares. Said Branson, â€Å"Our upper class and premium class as we call them are as competitively priced as the first class and business class fares of other airlines respectively. Except, of course, we give more services such as limousines, manicure, beauty treatment, etc, to every passenger on board. As for our economy class, our priority is to fly it houseful and hence the pricing is whatever it takes to get the customer. Hence, since we will be competing with Air-India too despite this agreement, the pricing and services will be competitive. † VA’s arrival was also expected to improve A-I’s services and even bring about a reduction in the fares depending on the market conditions. Said M. P. Mascarenhas, the then Managing Director of A-I, â€Å"We will have to compete and hence we will have to perform, even if it means fare reduction. † Analysts felt that a possible fare reduction would have an adverse effect on the bottomline of A-I. Responded Mascarenhas, â€Å"I don’t think it would because it would increase traffic and improve the overall situation. You see, now, between the two airlines, there will be services all days of the week. Analysts felt that with the AI-VA code sharing agreement, other carriers such as Thai Airways and Cathay-Pacific, which were asking for more flights, would pressurize the GoI for code-share arrangements with AI in lieu of more flights. Who will Rule the Delhi-London Skies? Analysts felt that with the entry of VA, the Indian skies would see some fierce price wars between VA and BA. Branson said that VA’s first class fares would be equivalent to the business class fares of BA and that the economy fare would be 30-50% cheaper than BA’s. If BA brought down ticket prices as it had done in May 2000, VA would fly for less, Branson said. Since BA had proposed a fare of about Rs 27,000 on the Delhi-London sector, Branson said VA would file an application with the GoI for a lower fare. At the same time, VA would respect the Government’s sentiments on fares, since it was a regulated market, Branson said. In June 2000, VA announced that it would start its operations in India in July with a bi-weekly service-Wednesdays and Fridays from London and Thursdays and Saturdays from Delhi. VA planned to launch a third weekly flight around October. The airline would offer low introductory fares. Mackenzie Grant, VA’s general manager for India said the initial fare was still being worked out and that it would be difficult to give a comparison with competing airlines. Analysts felt that VA would give BA some stiff competition, not only in terms of fares, but also with its array of services such as sleeper seats, massage services and lounge facilities. Said one, â€Å"Virgin’s entry will certainly be a boost to services between India and Europe. The airline has a high quality product. † Branson promised VA fare would be extremely competitive. Analysts felt that competitive pricing would mean that VA would price its Delhi-London flight for less than Rs 25,000, which was approximately the A-I fare. A-I feared there would be an exodus of its already dwindling passenger list. Meanwhile, BA was bracing itself to meet the VA challenge on the Delhi-London sector. The airline announced direct daily services between London and Delhi from October 30, thereby increasing capacity by 25 per cent on this sector. For this, the airline suspended its twice weekly service to Calcutta and terminated its five times-a- week service from Delhi to Dhaka from October 30. The changes were made as part of a renewed bilateral agreement between UK and India signed in February 2000. On July 5, 2000, VA dropped a bombshell. It slashed its introductory airfare from the normal Rs 42,598 to Rs 31,000 for a return ticket on the busy London-Delhi route. But just before VA’s entry into Indian airspace, BA also announced a special economy-class fare: a Rs 27,635 round trip ticket. According to analysts, consumers were at last getting the benefits of a liberalised competitive sector. In July 2000, BA won the right to three more flights per week between India and Britain, drawing an immediate protest from VA. According to BA’s South Asia manager Alan Briggs, under a special arrangement outside a bilateral aviation agreement, the GoI had given BA permission to fly three times a week to the eastern city of Calcutta. Under the bilateral pact, which was renewed in February 2000, BA and A-I were each allowed to fly 16 times a week to each other’s home country. A-I used 10 of its 16 weekly flight entitlements on the route. BA used all 16 of its flight entitlements, with seven flights a week to Delhi, seven to Mumbai and two to Madras. BA had been lobbying since 1993 to increase the number of its flights to India. The End of the Honeymoon? By October 2000, VA was to start its third code share flight as per the agreement with A-I. In addition to the Rs 100 million per flight per annum that A-I got from VA, the third flight would fetch A-I Rs 300 million per annum. However, till late 2001, VA was flying only two flights a week. Also, there was no progress on the remaining three flights that VA was entitled to fly from 2001. This seemed to the bone of contention between VA and A-I. VA officials were particularly unhappy that BA was granted rights to fly three additional flights per week from Kolkata to London against the prevailing norms. What seemed particularly strange was that there was no commercial agreement or code share for any of these additional frequencies. Commenting on the GoI’s interest in BA, a leading business magazine in India wrote, â€Å"The needle of suspicion automatically points to vested interests in the ministry and their sudden penchant for BA. â€Å"5 By December 2000, it became clear that VA would have to wait a bit longer for final clearance from A-I to commence the third code-share |flight on the India-London sector. While VA officials claimed that they would start the third code-share flight within a reasonable period of time following clearances from Indian authorities, A-I officials said that nothing was in the offing as yet. Said a VA official, â€Å"The ball is in the court of A-I and the Indian Government. The day we get the permission, we will start the service in a reasonable time period, which will allow us to relocate aircraft and crew to commence the third flight. Further, the airline will be only too happy to serve other destinations in India. † Some analysts said that while VA was keen to operate the third flight on Sundays from London with a Monday departure from Delhi, A-I was opposed to as the Indian carrier also had a Delhi to London flight on Monday morning. VA was willing to schedule its flight at 2 p. m. in the afternoon, ensuring a gap of more than 6 hours between its flight and A-I’s London flight. But this was not acceptable to A-I, which pointed out that according to the agreement signed between VA, and A-I, VA was to operate flights only on those days when A-I did not operate services to London. A VA official said that the delay in granting permission to VA to operate the third flight on the sector was proving to be financially disastrous for A-I. However, despite these problems, VA said it was interested in code sharing with A-I to other cities such as Chennai, Bangalore, Hyderabad and Ahmedabad. In late 2001, VA was in some trouble because of the downturn in the transatlantic aviation business and shrinking revenues. VA announced 20 per cent reduction in operations, grounded five of its aircraft and pruned the workforce by 1200 to tide over one of the worst crises for the international aviation business in the aftermath of the US attacks6. Having already announced 20 per cent reduction of activities, the airline seemed unable to sustain its operations in India with just two |flights a week. Said Paul Smitton, general manager-India, VA, â€Å"Two flights each from Delhi is not a viable proposition in the long run. At least three or more flights makes the business viable as it would enable us to get more traffic and meet economies of scale from our operations here. † He added, â€Å"No airline can sustain loss making regions for long. And this time round, we will wait for just months and not |years before taking a decision. † Analysts felt that VA was likely to review its strategy for its fledgling unprofitable Indian operations. |During its short stay in India, VA had already notched up losses on the Delhi-London sector and industry sources ruled out the chances of VA breaking even unless the frequency increased from the current level. VA officials have indicated to the GoI that VA may have to pull out of India if the frequency of operations was not increased. VA informed the GoI that it had agreed to provide A-I with income worth Rs 100 million per annum for each flight on the basis of the understanding that a third frequency would be allowed on schedule. VA also said that it had hired Indian crew for three flights and spent on publicity, as it was confident its frequency would be increased. It informed the GoI that it would have to pull out of India if the third flight was not cleared. In October 2001, the GoI ordered a full review of the code-sharing pact. What remained to be seen was whether the much-hyped I-A-VA alliance would be sustainable in the long run

Beer Wars Essay

What’s more refreshing on a hot summer day than a nice cold beer? Or how about drinking a nice cold one with some buddies after work at a local bar, sound nice doesn? t it? Beer has been around for many years and will probably be around for many more. A beer is any variety of alcoholic beverages produced by the fermentation of starchy material derived from grains or other plant sources. The production of beer and some other alcoholic beverages is often called brewing. Most every culture has there own tradition and the own take on beer, thus producing many different styles and variations. Simply put, a beer style is a label given to a beer that describes its overall character and often times its origin. It’s a name badge that has been achieved over many centuries of brewing, trial and error, marketing, and consumer acceptance. There are many different types of beer, each of which is said to belong to a particular style. A beer’s style is a label that describes the overall flavour and often the origin of a beer, according to a system that has evolved by trial and error over many centuries. According to the type of yeast that is used in the beer’s fermentation process, most beer styles fall into one of two large families: ale or lager. Beers that blend the characteristics of ales and lagers are referred to as hybrids. An ale is any beer that is brewed using only top-fermenting yeasts, and typically at higher temperatures than lager yeast. Becau†¦ †¦ middle of paper †¦ †¦ a smoked beer a brewer will fire his malt over a wood fire and let the smoke absorb into the grains. This imbues a smoky character in the taste of the brew. Specialty beers are a catch-all category used to describe any beers brewed using unusual fermentable sugars, grains and starches. With all of the different brewing techniques and styles and forms of ingridents there is almost and endless world of beer. Beer is diffently the ultimatesocial drink and it has been proven for years. Beer can be anything from dark, fruity and mysterious to light, crisp and refreshing. Beer tasting is an art and should always be respected. So respect your beer and have fun. Go to your local bar today with a few buddies and begin on your own beer journey.

Project Management Project Planning Fundamentals

Abstract:now a days business has been growing with lots of changes in technological environment. 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Aids the Silent Killer - 758 Words

AIDS: The Silent Killer Introduction AIDS is one of the most commonly known sexually transmitted diseases. The last stages of HIV, Human Immunodeficiency Virus, are what we know as AIDS, Acquired Immunodeficiency Syndrome. HIV is similar to other viruses like the flu or common cold except the human immune system cannot destroy the virus. The virus can hide in the cells of the body for long periods of time and attacks important parts of the immune system like T-cells or CD4 cells. Once HIV destroys a lot of CD4 cells the human body can no longer fight against infections and diseases. AIDS is diagnosed when the body cannot fight against disease and the patient has one or more specific opportunistic infections (OIs), different types of†¦show more content†¦In 1982, scientists discovered that AIDS remains a sexually transmitted disease. Not until 1984 did researchers conclude that AIDS is caused by HIV. 12 Although HIV has become somewhat maintainable, during the early years of the AIDs virus a vaccine seemed i mpossible, and with almost 30 years since the virus first budded its head there is still no vaccine.13 As I said earlier HIV is a virus, specifically a retrovirus. 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Merger Is The Merging Of Jds Fitel Inc. And Uniphase Corp

1. Definitions: 1.1. Merger: â€Å"A merger is a combining of two or more companies to form a new company†. An example of a merger is the merging of JDS Fitel Inc. and Uniphase Corp. in 1999 to form JDS Uniphase. 1.2. Acquisition: To acquire another firm, usually through the purchase of shares of the company or to buy assets of the business directly. â€Å"Acquisition is the purchase of one company by another in which no new company is formed†. An example of an acquisition is Manulife Financial Corporation s 2004 acquisition of John Hancock Financial Services Inc. 2. Types of Mergers: 2.1. Horizontal Merger - One company acquires a competing company. After being carefully reviewed it may be deemed as anticompetitive. 2.2. Vertical Merger - When a†¦show more content†¦There are mixed conclusions as to whether mergers have a positive effect on innovation and synergies, research, productivity of the new company. However, mergers and acquisitions appear to have a positive economic effect on the company in the short-term, allowing the company to reduce costs, it can have a negative effect on productivity and innovation longer term. 3. Advantages and disadvantages of mergers: 3.1. Advantages: 3.1.1. Small, biotech firms and university labs can help to plug the innovation gap, and even some mid-size pharmaceutical firms are operating with RD visions and in a therapeutic area to build detailed knowledge. 3.1.2. Other Economies of Scale. All the potential economies of scale that can arise is the main advantage of merger. Example: In a horizontal merger, this could be quite extensive, especially if there are high fixed costs in the industry. Note: if the merger was a vertical merger or Conglomerate Merger, the scope for economies of scale would be lower. 3.1.3. Avoid Duplication. In some industries it makes sense to have a merger to avoid duplication. For example: two bus companies may be competing over the same stretch of roads. Consumers could benefit from a single firm with lower costs. Avoiding duplication would have environmental benefits and help reduce congestion. 3.1.4. Regulation of Monopoly. Monopoly is characterized by an absence of competition, which often results in high prices and

The First Reactor Essay Example For Students

The First Reactor Essay The First ReactorThe First Reactor chronicles the conception and implementation of the first self-sustaining nuclear pile. The booklet has three main sections to it. The first one tells of the history and background of the organizations and research that were used for the momentous experiment, as well as the actual proceedings that occurred on December 2, 1942. The second section is basically a brief synopsis of the first. The third section documents part of Enrico Fermis life and the secrecy surrounding his work, from his wifes perspective. Years of research went into the culmination of the first self-sustaining nuclear reaction. Different preliminary experiments were done by many scientists to discover the properties and intricacies of neutron production and interaction. All leading up to the fateful day under the west stands of Stagg Field when the first successful self-sustaining reaction occurred, or as they cleverly say in the booklet, The Italian navigator has landed in the New World. The secrets of the nuclear projects were closely guarded. So close in fact, that not even Enricos own wife was allowed to know. In the section written by her, telling of her bewilderment, we get a sense of how strongly the classified information was kept from the people who didnt need to know. Science

The Formulation of Criminal Justice Policies Essays - Criminal Law

The Formulation of Criminal Justice Policies Student's Name Institution of Affiliation The Formulation of Criminal Justice Policies The criminal justice systems play the critical role of facilitating various government institutions to maintain social control, deter as well as mitigate crime. In effect, it is imperative for the government to ensure that the criminal justice system is functioning effectively. The performance of the criminal justice system is influenced by the standard of policies that are used for the purpose of operating it. In consequence, it is critical for the stakeholders of the criminal justice system to ensure that the administrators of the institution manage to develop top notch policies. A review of the operations of the criminal justice system confirms that the use of statistical data is instrumental to the formulation of world-class criminal justice policies. Currently, a substantive fraction of the residents in the United States are complaining about the criminal justice system because of the fashion in which they have been carrying out their operations. Notably, the critics of the criminal justice system argue that the law enforcement officers have been carrying out extrajudicial killings leading to the formation of civil society movements such as Black Lives Matter. Indeed, the police have made the effort of ensuring that they process most of the cases regarding to extrajudicial killings but the outcomes of such inquiries have been controversial. In effect, the general public has been losing confidence on the credibility of the operations of some of the law enforcement agencies (Sheperdson, Clancey, Lee & Crofts, 2014). Due to this facet, it is essential for the directors of the criminal justice system to utilize the latest set of statistical data to review the incidence of extrajudicial killing across the country. The utilization of statistical data will enable the directors of the criminal justice system to develop an impartial and objective view of the situation. In consequence, the directors of the criminal justice system can develop policies which will minimize the prevalence of extrajudicial killings throughout the country which can boost the confidence of the public on the system. Additionally, the use of statistical data by the stakeholders of the criminal justice systems can enhance their effectiveness at rehabilitating prisoners. The analysis of statistical data can enable the prisons department to determine the most common type of crime in the country. In consequence, the prison department can develop programs that specially address the factors which lead to the execution of such crimes (Silveira & Beato, 2014). By so doing, it is highly likely that the prisons department will reduce the incidence of those types of crimes. The quality of policies which will devised will be influenced by the standard of statistical information utilized by the directors of the criminal justice system. In a nutshell, it is evident that the use of statistical data as a means of supporting the criminal justice policy is critical to improving the effectiveness of the criminal justice system. Notably, the use statistical data that is utilized during policy formulation facilitates the stakeholders of the criminal justice system to devise policies which will improve the accountability of public officials. Similarly, the utilization of statistical data will ensure that all the policies which are formulated are relevant to the contemporary social, economic and political environment (Valle, 2010). In effect, the criminal justice policy will enable the various arms of the criminal justice system to enhance their contribution towards upholding social control, sanctioning the individuals who contravene laws with retribution efforts, mitigating as well as deterring crime. References Sheperdson, P., Clancey, G., Lee, M., & Crofts, T. (2014). Community Safety and Crime Prevention Partnerships: Challenges and Opportunities. International Journal for Crime, Justice and Social Democracy. Retrieved 17 July 2017, from https://www.crimejusticejournal.com/article/view/135 Silveira, A., & Beato, C. (2014). Effectiveness and Evaluation of Crime Prevention Programs in Minas Gerais. Stability: International Journal Of Security & Development, 3(1), 20. http://dx.doi.org/10.5334/sta.dr Valle, M. (2010). Crime Prevention and Community Safety: A Conceptual Overview. International Journal Of Child, Youth & Family Studies, 1(1).