South African Special - Interview V. Thulasidas

Mr. V. Thulasidas has assumed charge as Chairman & Managing Director of Air-India effective December 22, 2003. Mr. Thulasidas is from Alleppey District of Kerala and completed his education in his home State. He took his M.A. Degree in English language and Literature from the University Institute of English in Thiruvananthapuram in 1970. He taught briefly in a college in Kerala and later he was selected for the IAS which he joined in 1972. Mr Thulasidas was allotted to Manipur-Tripura cadre. He has worked in various capacities in Tripura, in Government of India and in Government of Kerala for sometime. Here Mr. Thulasidas tells us about some of the exciting plans of AIR INDIA in the immediate future.
 
Our National carrier is very much in the news. Tell us more about the new direct flights started by AIR INDIA for the Mumbai-Los Angeles route?

This is the first time that AIR INDIA is flying to the west coast of USA. Earlier Air India was never able to fly there. We started this new service Mumbai-Los Angeles on the 11th of June 2004. Right now its frequency is three flights per week which we plan to increase to five in the winter and seven i.e. daily flights next summer. It is going to be with one stop at Frankfurt. This is the first flight of its kind that is an India- West Coast of USA flight. No other airline offers this service today.

 

If you look at the proximity and the distance from the Pacific side the West Coast is closer. How come the decision was via Frankfurt?
We have the possibility of having a shorter flight across the Pacific only if we went through Tokyo. However we do not have the agreement for that. For other routes flying over the Pacific or the Atlantic the time taken would be almost the same and therefore it makes no difference. It takes about 17 to 18 hours and the flight that we have now leaves Mumbai in the morning and reaches Los Angeles by afternoon. It is a very convenient flight for people. You can also leave Los Angeles in the evening and return to Mumbai.
 
The 'no-frills' airline concept is gaining momentum worldwide and how soon would AIR INDIA be starting a 'no-frills' carrier and which sectors would it cover initially?
This new service called AIR INDIA Express, which we plan launching is basically to fulfill the demand of such a service as we thought from a price sensitive market. These flights will be of 3 to 5 hours duration, where ideally the passenger on this flight is concerned more about reaching his destination fast and at a reasonable price. These will be all economy class flights with fares which are lower than the present level and the other amenities will be steered up. Not that there will be no amenities. It is basically to meet the demand for such a service from the market which is also the practice today in many parts of the world to have 'no-frills' airline like this.

AIR INDIA in its present structure cannot offer a service like that. We want AIR INDIA's brand to be now distinguished and upgraded as a premium brand, as one of the best in the world. We will try to achieve it. We want the economy service to be provided by a different brand. We have also looked at the numbers, the financials and we are optimistic that we will get a financial gain from this operation. These flights will operate at least initially from India to Middle East and South East Asian countries.
 
This year inbound tourism has grown substantially. What way has this affected the growth and what role is AIR INDIA playing to promote tourism to India?
AIR INDIA has been the flag carrier for tourism into India and out of India for a long time. It is a fact that tourism is doing very well in India today. New destinations have come up and promotional campaigns have been successful. AIR INDIA has to play a major role in the years to come to promote this further and be there to cater to the present market. Today more people are travelling out of India than into India which shows that tourism into India is growing but Indians as tourists are travelling more than ever not only on business, but also visiting family and friends as well as for leisure. There is a great opportunity for India here to increase its market share, to provide more capacity to the travelling public and that in turn would promote tourism further.
 
The other area in the airline which is fast growing is Cargo. What is in store for the Cargo sector? 
Today we have a very limited role in Cargo. We have to increase our Cargo handling capacity. Cargo is a very profitable area and there are two ways in which we can move forward. The first one is to try and promote under the brand name of AIR INDIA. Second option is to do it through another company which is a subsidiary of AIR INDIA. Either way we can have a role worked out. We can use our aircraft or we can increase cargo space on other aircrafts and fly to important cargo markets. We plan to launch a subsidiary called Air India Transport Service which will focus on cargo handling. So that is an area which we had identified as a major thrust area where there is business opportunity for AIR INDIA. In cargo we have two 747-300 Combi Aircraft which has about half of it for Cargo.

Otherwise we have the regular passenger aircraft where the passenger luggage is put and then whatever space is left is kept for Cargo which is not enough. We must have a greater share in the Cargo market. We do not have a full fledged freighter today. We are analyzing whether we should have freighters of our own or should we do it through a subsidiary.
 
What are the other departments of AIR INDIA?
AIR INDIA's core business is flying passengers from one place to another internationally and AIR INDIA's focus will remain the same in the days to come as well. We don't want to deviate from it. All else that we do is to support that. All the other activities need not be done by AIR INDIA- some of it can be outsourced and some of it can be done through subsidiaries each developing its own expertise.

 


For example, today we have AIR INDIA Charters which will fly this new service called AIR INDIA EXPRESS in the days to come. We want our main stream AIR INDIA brand to be different. We want AIR INDIA TRANSPORT SERVICE to do the ground handling and we want them to acquire technology, expertise from a joint venture partner so that becomes a clearly focused business center. We would like to have another company called ENGINEERING which will take care of the maintenance of aircraft and will focus on that only.

Today it is just a supporting service for AIR INDIA. We want to have an independent business venture which contributes to the parent company that is AIR INDIA. Another area we are looking at is IT. We would like to get into some joint ventures so that it can contribute not only to AIR INDIA's core activities but can also earn through business from others. AIR INDIA wants to concentrate on their core business and providing convenient and comfortable flights and to be one of the best in the world.

Regarding today's Agency- Airlines relationships, commission capping is taking place. So what will be AIR INDIA's role in this changing scenario?
Changes that have taken place in this area have to be studied by AIR INDIA carefully. In many countries there is zero commission policy and the agents earn revenues from passengers.
 
In what way AIR INDIA plans to help boost tourism by involving smaller tour operators and making holiday packages?
As far as hotels are concerned AIR INDIA used to have hotels of its own known as Hotel Corporation of India which was a subsidiary. Later Hotel Corporation properties were disinvested. Already two hotels in Mumbai and one in Bihar are disinvested, the others are on their way to privatization. Today AIR INDIA does not have a plan to own hotels but we are now thinking in terms of having something called Travel Plus- adding greater value for the passengers of AIR INDIA. At our Nariman Point building itself there are a host of services that we offer the passengers, not necessarily done by AIR INDIA directly but under the AIR INDIA brand name. This is yet to be analyzed so we have to monitor the same. If it starts successfully we would like to replicate it in other stations.
 
How soon is AIR INDIA planning to adopt the technology of e-ticketing?
AIR INDIA is also determined to have e-ticketing. We have drawn up a plan in the next 8 months or so-starting in August and gradually building it up.
 
Since how long have you been at the helm of affairs and what significant changes have taken place?
I have been here only since 22nd December 2003, that means I will be completing 6 months only on the 22nd of June 2004. There are a lot of things happening but there is a lot more which needs to happen. The recently introduced Mumbai- Los Angeles flight has been a major milestone for AIR INDIA. We also have a flight from Ahmedabad to London which is again important for us. We have to wait for the fleet of AIR INDIA on the US route till the approval of acquisition of aircraft is approved by the government. The overall flying facility of over flying Pakistan has helped us and many other airlines in reducing the cost.

I have also seen during this period a remarkable increase in the price of oil which will affect all of us and I hope it will come down otherwise it will create problems not just for AIR INDIA but for all other airlines as well. The most remarkable thing that is happening in India is the growth of tourism and the travel market in India has become a major contributor in India's Economy today and AIR INDIA I feel is poised for a major role in that area. It's a good time for India in the days to come.
 
How do you represent AIR INDIA and generally the airlines and what is your liaison with IATA in establishing popularity in the Air Transport Industry?
AIR INDIA is a member of IATA and IATA is a body for all airlines. IATA has established certain business facilities for all airlines including the BSP (Billing and Settlement Plan). Settlements between the agents and airlines is a major facility today for all airlines and for the Travel Agents. But IATA also takes up issues of common interest for all airlines. IATA would also like to see that e-ticketing is the law in the next 3 years, they are going to fix some internal targets for that. It will also be a body which will raise issues with various governments on behalf of the airlines. You will be happy to know that in the recent IATA meeting, IATA has identified India and China as emerging markets for the Air Travel Industry and India has a very major role in that. 
 
Since people of your status are an inspiration to young generation, we would like to share your success story for the benefit of our readers?
My generation did not have the kind of facility which today's generation has in India. Very great opportunities are there for the young people today and of course Indians are doing very well in India and outside. It's just a matter of determination that you have to excel and you have to do well and things may not always turn out to be the way you decide. At least you must have the satisfaction that you have tried very hard. Even if as a student you have that determination that you will try very hard even if you don't succeed that doesn't matter. You must be determined to do the best for your family, community and ultimately for your nation. I think a lot can be achieved.
 
A message for our readers and why AIR INDIA should be their preferred airline to fly various destinations abroad?
I have come across many people who criticize AIR INDIA and INDIAN AIRLINES. We have all criticized INDIAN AIRLINES and AIR INDIA in the past. That only means that we need to improve more and more and I am determined that AIR INDIA should grow. At the same time I am happy that most Indians are happy to travel by AIR INDIA. This I have known for a fact - many people have told me that. This is nothing peculiar about Indians or India. It is mostly the case with all nationalities. I see people coming from different countries and they all come in their airlines. In fact some of the countries which are very free like the US, most of the Americans travel only on American carriers even if they are not owned by the government. We are owned by the government.

So I think this right of travelling in one's own airline is a legitimate right which all Indians and all other nationalities have. All we need to do in AIR INDIA is to remember that Indians are our biggest customers and that AIR INDIA is limited not only to Indians but we carry a lot of international passengers as well. And we should truly be an international airline providing International level services to everyone. To the Indian travelling public there is a special obligation and I think we provide a lot to those travellers who travel internationally and the suggestions and ideas that come from them are very valuable. We have a committee which looks into passenger suggestions and complaints and we are trying to improve the situation to make AIR INDIA a premium brand in the market.
 
AIR INDIA's MASCOT- THE UBIQUITOUS MAHARAJAH
The MAHARAJAH- AIR INDIA's mascot, has completed 58 glorious years of its existence. Its extensive use in advertising and sales promotion activities of AIR INDIA has made him the most recognisible mascot the world over. In fact, it would not be wrong to say that the MAHARAJAH is the most well known face figure globally that instantly reminds people about India and its national carrier, AIR INDIA. This now familiar lovable figure first made his appearance in Air-India way back in July 1946, when Bobby Kooka as Air-India's Commercial Director asked Hindustan Thompson Associates their advertising agency formerly known as J.Walter Thompson Ltd., Mumbai, to submit a design for a memo pad with the wording “in flight”. 

Mr Umesh Rao, an artist employed with J.Walter Thompson Ltd. in Mumbai, worked together with Mr. Kooka and came up with a line drawing of a rich Indian potentate, symbolizing graciousness and high living. And somewhere along the line his creators gave him a distinctive personality: his outsized moustache, the striped turban and his aquiline nose. The figure was developed into a MAHARAJAH who broke the fetters of the designer's line and assumed a life of his own- a life breathed into him by his creators. The MAHARAJAH, epitomizing India's traditional hospitality was unique. No other airline in the world could have a similar symbol, because he was so typically Indian.

What began as an attempt as a design for an in-flight memo pad grew to take Air-India's sales and promotional messages to millions of travellers across the world. Today, this naughty diminutive Maharajah of Air-India has become a world figure. He can be a lover boy in Paris, a sumo wrestler in Tokyo, a pavement artist, a Red Indian, a monk... he can effortlessly flirt with the beauties of the world. And most importantly, he can get away with it all. Simply because he is the Maharajah!
CENTAUR - AIR INDIA's INSIGNIA
Air-India believes that this visual image must be simple, coherent and most importantly, it must be an honest representation of the ideals that Air India stands for.

After the formation of Air-India International in 1948, four Lockheed Constellations were ordered to commence international operations. The management began casting about for a symbol that would denote speed and simultaneously have universal appeal. Sagittarius, the archer, is the ninth sign of the Zodiac. The Greeks represented this constellation in the act of shooting an arrow. As it symbolizes movement and speed, the Centaur, a stylized version of Sagittarius, was selected as Air-India's logo. 

The power of the symbol is to influence and people can never be under-estimated - for symbols have power to play upon the emotions, memories and sensitiveness. The Centaur is symbolic of the airline and stands out as a distinct and sole representative of the standards Air-India has set for itself.

The Centaur was selected by the late J.R.D Tata, former Chairman of AIR INDIA and adopted by Prof. Walter Langhammer, a well known artist and former Art Director of Times of India, Mumbai.

AIR INDIA HIGHLIGHTS 2004

AIR INDIA, on the occasion of the World Women's Day, on March 8, 2004, operated its first flight on the Mumbai-Delhi-Singapore sector with all women cockpit crew.

AIR INDIA, the largest carrier of perishable cargo from India, has taken over as the sole ground handling agent at the world-class Perishable Cargo Centre set up recently in Mumbai

AIR INDIA has been awarded the prestigious Mercury Award by the International Flight Catering Association (IFCA) at the IFCA 2004 Conference held recently at Nice, France for the Food and Beverage Product arrangements made with M/s Veeraswamy, a leading Indian Restaurant at London from where food items for First and Executive Class on the London-USA/India sector had been uplifted.
 
 
 
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