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Mumbai: State-run National Aviation Co. of India Ltd, or Nacil, which operates flag carrier Air India, has shortlisted German plane repair firm Lufthansa Technik AG and Virginia, US-based aviation consultant Simat Helliesen and Eichner Inc. to develop a network strategy and operational plan that would help it make the best use of its fleet and become part of a global alliance of airlines.
“Nacil is initiating a clean-sheet exercise for its network strategy,” said a Nacil executive. “The (selected company) will carry out market analysis, including seasonality analysis, with updated market sizes and prediction of demand at various cities.” Lufthansa Technik or Simat Helliesen would also study aviation hub development in India and abroad and make recommendations based on traffic flow and potential, added the executive, who didn’t want to be named.
Nacil, with a market share of 18% in August according to ministry of civil aviation data, is under greater pressure to improve its competitive edge after private-sector rivals Jet Airways (India) Ltd and Kingfisher Airlines Ltd, with a combined market share of 58.5%, formed an alliance last week to lower costs, as they reel under the impact of increased aviation fuel prices.
“The integration of Air India and Indian Airlines into Nacil is not happening at the desired pace. Therefore, Nacil needs to do something very urgent as the passengers will shift to whoever offers better services and fares,” said an analyst with a domestic brokerage. He declined to be named as he is not authorized to speak to the media. The same analyst said the Jet-Kingfisher alliance plans to jointly deploy 189 aircraft on domestic and international routes and cross-sell flight tickets. Nacil has no such partner in the country.
source: www.livemint.com
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