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KOMAL JADHAV
GUIDING TEACHER
PROF. RASHMI BHATTACHARYA
UNIVERSITY OF MUMBAI
RAJASTHANI SAMMELANS
GHANSHYAMDAS SARAF COLLEGE
OF ARTS AND COMMERCE
S. V. ROAD, MALAD (W)
MUMBAI- 400064
RAJASTHANI SAMMELANS
GHANSHYAMDAS SARAF COLLEGE
OF ARTS AND COMMERCE
S. V. ROAD, MALAD (W)
MUMBAI- 400064
CERTIFICATE
Course Co-ordinator
Principal
External Examiner
DECLARATION
Signature
KOMAL JADHAV
ACKNOWLEDGEMENT
Selection of this project topic and in depth study on it gave momentum to our
subdued and dormant brain and it was an opportunity to learn more and expand
our horizon.
During the course of our project work being carried out at Ghanshyamdas Saraf
College, we are receiving the valuable support and kind co-operation of number
of people. We are deeply indebted to our guide, our subject teacher, and group
members, for their continuous and priceless suggestion without which we
would not have been able to succeed in our project work carried on until now.
We are also obliged to our Prof. Ms. Rashmi Bhattacharya who extended their
sincere help in present study.
We are also thankful to our internal guide, for their valuable suggestion and
guidance we also support. We express our gratitude towards our principal Dr.
Sujata Karmarkar, for their continuous support
SR.NO
CONTENT
PAGE
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COMPANY PROFILE
HISTORY
13
BIBLIOGRAPHY
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1. Company Profile
Air India is the flag carrier airline of India owned by Air India Limited (AIL), a Government of
India enterprise. It is the third largest airline in India (after IndiGo and Air India) in domestic
market share, and operates a fleet of Airbus and Boeingaircraft serving various domestic and
international airports. It is headquartered at the Indian Airlines House in New Delhi. Air India
has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji
International Airport, and secondary hubs at Netaji Subhas Chandra Bose International Airport,
Kolkata and Chennai International Airport. The airline formerly operated a hub at Frankfurt
Airport which was terminated on account of high costs. However, another international hub is
being planned at the Dubai International Airport.
Air India was once the largest operator in the Indian subcontinent with a market share of over
60%. Indifferent financial performance and service, labor trouble pushed it to fourth place in
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India, behind low cost carriers like IndiGo, SpiceJet, and its full service rival Air India. Between
September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%,
primarily because of stiff competition from private Indian carriers. However, after financial
restructuring and enforcement of strict rules and regulations, the airlines showed signs of turning
around. In March 2013, the airlines posted its first positive EBITDA after almost 6 years. The
airlines bolstered its financial and physical performance with a 44 per cent slash in its operating
losses in 2013-14 and an almost 20 per cent growth in its operating revenue since the previous
financial year. As of January 2014, Air India is the third largest carrier in India,
after IndiGo and Air India with a market share of just above 19%.
The airline was invited to be a part of the Star Alliance in 2007. Air India completed the merger
with Indian Airlines and some part of the agreed upgrades in its service and membership systems
by 2011. In August 2011, Air India's invitation to join Star Alliance was suspended as a result of
its failure to meet the minimum standards for the membership. However, in October 2011, talks
between the airline and Star Alliance resumed. On 13 December 2013, Star Alliance announced
that Air India and the alliance have resumed the integration process and the airline became the
27th member of Star Alliance on 11 July 2014.
2. HISTORY
Early years (1932-1945)
Tata Sons, a division of Tata Sons Ltd. (now Tata Group) was founded by J. R. D. Tata in
1932. The aviator had an idea to run mail flights from Bombay and Colombo that connected
with the Imperial Airways flights from the United Kingdom. He found a supporter for his plans
from J. R. D. Tata of the Tata Iron and Steel Company. After three years of negotiations Vintcent
and Tata won a contract to carry the mail in April 1932 and in July 1932 the Aviation Department
of Tata Sons was formed. On 15 October 1932, J.R.D. Tata flew a single-engined De Havilland
Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi's Drigh Road
Aerodrome
to Bombay's Juhu
The
aircraft
continued
to Madras via Bellary piloted by Vintcent. Tata Airlines initially consisted of one Puss Moth
aircraft, one Leopard Moth, one palm-thatched shed, one whole time pilot assisted by Tata and
Vintcent, one part-time engineer and two apprentice-mech According to The New York Times,
Tata Air Mail made a profit of 60,000 rupees its first year, and by 1937, that profit had risen to
600,000 rupees.
Initial
service
included
weekly
airmail
service
with
a Puss
Moth
aircraft between Karachi and Madras via Ahmedabad and Bombay, covering over 1,300 miles. In
its very first year of operation, Tata Airlines flew 160,000 miles, carrying 155 passengers and
10.71 ton of mail. In the next few years, Tata Airlines continued to rely for its revenue on the
mail contract with the Government of India for carriage of surcharged mail, including a
considerable quantity of overseas mail brought to Karachi by Imperial Airways. The same year,
Tata Airlines launched its longest domestic flight Bombay to Trivandrum with a six-
seater Miles Merlin. In 1938, it was re-christened as Tata Air Services and later same year was
renamed as Tata Airlines. By this time Delhi and Colombo were also serviced.
Air India International entered the jet age on 21 February 1960 when its first Boeing 707420,
named Gauri Shankar (registered VT-DJJ), was delivered, thereby becoming the first Asian
airline to induct a jet aircraft in its fleet. Jet services to JFK International Airport inNew York
City via London were inaugurated that same year on 14 May 1960. On 8 June 1962, the airline's
name was officially truncated to Air India. On 11 June 1962, Air India became the world's first
all-jet airline. In 1971, the airline took delivery of its first Boeing 747-200Bnamed Emperor
Ashoka (registered VT-EBD). This coincided with the introduction of the 'Palace in the Sky'
livery and branding. A feature of this livery is the paintwork around each aircraft window, in the
cusped arch style of windows in Indian palaces. In 1986 Air India took delivery of the Airbus
A310-300; the airline is the largest operator of this type in passenger service. In 1988, Air India
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Until 2007, Air India and Indian Airlines operated as two completely different airlines, though
completely owned by the government of India. Air India mainly operated on International longhaul routes while Indian Airlines operated on domestic and international short-haul routes. Both
airlines had different fleet expansion and retirement plans. In 2007, the government decided to
bring both the airlines, including Air India Express and Indian Airlines' low cost subsidiary
Alliance Air under the control one body, Air India Limited (previously National Aviation
Company of India Limited).
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In 2012, a study commissioned by the Corporate Affairs Ministry recommended that Air India
should be partly privatized. In 2013, the then Civil Aviation Minister Ajit Singh stated
privatization was the key to the airline's survival. However, the opposition lead by the BJP and
the CPI(M) slammed the Government.In April 2009, due to high fuel and loan costs, the Indian
government pumped 32 billion (US$480 million) into Air India and in March 2012 the
government bailed out Air India Ltd. with a grant of 67.5 billion (US$1.0 billion). As of May
2012 the carrier invited offers from banks to raise up $800 million via external commercial
borrowing and bridge financing. In 2013, the Indian government planned to delay equity infusion
of 300 billion (US$4.5 billion) that was slated to be infused into the airline slowly over a period
of eight years. Plans were changed as the government then planned to spread it over a longer
period of time as part of measures to bring down the economy's financial deficit. The original
plan was to pump in some 300 billion (US$4.5 billion) into the airline in 2013, while less than
half of that amount was mentioned in the annual budget.
In January 2013, Air India paid GMR Group a sum of 4.15 billion (US$63 million) towards
outstanding dues on account of charges related to the airports at Hyderabad and Delhi. Of the
amount paid, 3.4 billion (US$51 million) was paid to clear the user development fee (UDF),
airport development fee (ADF) and landing and parking charges at the Indira Gandhi
International Airport in Delhi. The remaining 750 million (US$11 million) was paid to clear
similar fees at the Rajiv Gandhi International Airport in Hyderabad. In order to raise funds for
reconstruction, Air India decided to sell and lease back its aircraft, including the newly
acquired Boeing 787 Dreamliners. In March 2013, the airline posted its first
positive EBITDA after almost 6 years. The airlines bolstered its financial and physical
performance with a 44 per cent slash in its operating losses in 2013-14 and an almost 20 per cent
growth in its operating revenue since the previous financial year. As of January 2014, Air India is
the third largest carrier in India, after IndiGo and Air India with a market share of just above
19%.
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social
responsibility (CSR,
also
called corporate
conscience, corporate
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make a positive impact on the environment and stakeholders including consumers, employees,
investors, communities, and others.
Proponents argue that corporations increase long-term profits by operating with a CSR
perspective, while critics argue that CSR distracts from businesses' economic role. A 2000 study
compared existing econometric studies of the relationship between social and financial
performance, concluding that the contradictory results of previous studies reporting positive,
negative, and neutral financial impact, were due to flawed empirical analysis and claimed when
the study is properly specified, CSR has a neutral impact on financial outcomes.
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSRor that CSR is
merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over
powerful multinational corporations.
Political
sociologists
became
interested
in
CSR
in
the
context
of
theories
of globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as a form of
capitalist legitimacy and in particular point out that what began as a social movement against
uninhibited corporate power was transformed by corporations into a 'business model' and a 'risk
management' device, often with questionable results.
CSR is titled to aid an organization's mission as well as a guide to what the company stands for
its consumers. Business ethics is the part of applied ethics that examines ethical principles and
moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized
international standard for CSR. Public sector organizations (the United Nations for example)
adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar
principles, but with no formal act of legislation.
Orlitzky, Schmidt and Rynes found a correlation between social/environmental performance and
financial performance.
The business case for CSR within a company employs one or more of these arguments:
This measure was claimed to help some companies be more conscious of their social and
moral responsibilities. However, critics claim that it is selective and substitutes a company's
perspective for that of the community. Another criticism is about the absence of a standard
auditing procedure. The term was coined by John Elkington in 1994.
Human Resources
A CSR program can be an aid to recruitment and retention, particularly within the
competitive graduate student market. Potential recruits often consider a firm's CSR policy. CSR
can also help improve the perception of a company among its staff, particularly when staff can
become involved through payroll giving, fundraising activities or community volunteering. CSR
has been credited with encouraging customer orientation among customer-facing employees.
Risk Management
Managing risk is an important executive responsibility. Reputations that take decades to build up
can be ruined in hours through corruption scandals or environmental accidents. These draw
unwanted attention from regulators, courts, governments and media. CSR can limit these risks.
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Brand Differentiation
CSR can help build customer loyalty based on distinctive ethical values. Some companies use
their commitment to CSR as their primary positioning tool, e.g., The Co-operative Group, The
Body Shop and American Apparel
Some companies use CSR methodologies as a strategic tactic to gain public support for
their presence in global markets, helping them sustain a competitive advantage by using their
social contributions as another form of advertising.
Reduced Scrutiny
Corporations are keen to avoid interference in their business
through taxation and/or regulations. A CSR program can persuade governments and the public
that a company takes health and safety, diversity and the environment seriously, reducing the
likelihood that company practices will be closely monitored.
Supplier Relations
Appropriate CSR programs can increase the attractiveness of supplier firms to potential
customer corporations. E.g., a fashion merchandiser may find value in an overseas manufacturer
that uses CSR to establish a positive imageand to reduce the risks of bad publicity from
uncovered misbehavior.
License to Operate
Business firms are keen to avoid interference in their business through taxation or
regulations. By taking substantive voluntary steps, firms can persuade Governments and the
wider pubic that they are taking issues such as health and safety, diversity, or the environment
seriously as good corporate citizens with respect to labour standards and impacts on the
environment.
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Corporate Image
On the whole, CSR improves corporate image in the minds of various sections of the society.
Customers, employees, shareholders and other stakeholders respect and trust business firms
those focus on CSR activities, which are socially desirable.
3.3
STRATEGIES
FOR
LINKING
CSR
WITH
PROFIT
AND
SUSTAINABILITY
There are many aspects of corporate social responsibility; whether a company decides to
develop one area of CSR, or multiple areas; the end result is a more profitable company
experiencing a higher level of employee engagement.
Community Involvement:This can include raising money for local charities, supporting
community volunteerism, sponsoring local events, employing people from a community,
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supporting a communitys economic growth, engaging in fair trade practices, providing training
to weaker sections of the society, etc.
Ethical Marketing Practices: Companies that ethically market to consumers are placing a
higher value on their customers and giving them utmost respect. They market ethical products as
per the standards. They fix the right price and do not engage in unfair trade practices. They do
not try to manipulate or falsely advertise to potential consumers. This is important for companies
that want to be viewed as ethical.
Giving back to society is one good tradition of successful business. This is best done in the
community where the company is active. Thus the global activities of the Air India go hand-inhand with local projects around our production facilities. The philosophy of helping others to
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help themselves has led to successful and sustainable partnerships between the Company and
local actors. Around the globe, the Air India supports numerous CSR projects related to the arts,
sciences, education, health promotion, sports and nature conservation as well as local
infrastructure development. While the management of projects in the various brands and regions
is decentralized, they are all guided by shared values and basic principles. The following list of
the Air India CSR projects provides examples and is by no means exhaustive.
Corporate social responsibilitythe voluntary commitment of a business that includes triple
bottom line actions in its corporate processesis based on the principle that corporate success
and social well-being are interdependent and that the long-term interests of an organization are
best served by improving its economic, socio cultural, and environmental/energy practices, also
known as the three pillars of sustainability. As a responsible corporation, we respect the interests
of our stakeholders our shareholders, employees, customers, suppliers, and the wider
community and we actively seek out opportunities to improve the environment and to
contribute to the well-being of the communities in which we do business. Parsons delivers a
better world.
CSR VISION STATEMENT
The Air India CSR policy is aligned with its vision that Air India recognizes and honours its
social and environment responsibilities in the localities where it operates.
OBJECTIVES OF CSR AIR INDIA
The objective of this Policy is to set guiding principles for carrying out CSR activities by the
Company and also to set up process of execution, implementation and monitoring of the CSR
activities to be undertaken by the Company.
The objectives of this policy are to
Engender a sense of empathy and equity among employees of AISATS to motivate them
to give back to the society
ACTIVITIES
Eradicating hunger, poverty and malnutrition, promoting preventive health care and
sanitation and making available safe drinking water.
Promoting gender equality, empowering women, setting up homes and hostels for women
and orphans; setting up old age homes, day care centres and such other facilities for
senior citizens and measures for reducing inequalities faced by socially and economically
backward groups.
Protection of national heritage, art and culture including restoration of building and sites
of historical importance and works of art; setting up public libraries; promotion and
development of traditional art and handicrafts.
Measures for the benefit of armed forces veterans, war widows and their dependants.
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Training to promote rural sports, national recognized sports, Paralympics sports and
Olympic sports.
Contribution to the Prime Ministers National Relief Fund or any other fund set up by the
Central Government for socio- economic development and relief and welfare of the
Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.
Air India is set to celebrate World Environment Day on 5th June, 2015, highlighting the theme:
"SWACHH BHARAT IS A SWASTH BHARAT", in sync with our Hon'ble Prime Ministers
vision for "Swachh Bharat- A Clean India.
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Always committed to the cause of environment protection, Air India, will continue to carry out a
series of environment protection initiatives this year, too, with the active participation of Air
Indians with a mission to clean their surroundings & environment.
Employees are to observe "No Cars Day by leaving their cars at home and using public
transport system for that day on 5th June 2015. Besides, Air Indians will observe a No Plastics
Day by not only desisting to use plastic bags which pose health and environment hazards but
also dissuade others from using such bags.
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No car day also helped to prevent petrol. And even pollution for a day. With this Air India has
tried their level best to prevent the earth at least for one day.
Air India CMD Mr Rohit Nandan has appealed to all Air Indians to "join hands and switch off
non-essential lights in our buildings, offices and homes between8.30 pm to 9.30 pm to observe
Earth Hour, to support the unique movement of energy conservation to save the Earth. Let us
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all hold our hands and move forward in the right direction to conserve nature and pass on the
benefits to our next generation."
The Environment Management System (EMS) team of Air India has been awarded with the
"National Energy Conservation Awards in 2009, 2011 and 2013, for its achievement in Energy
Conservation by the Ministry of Power. It also won the "Earth Care Award-2011 for excellence
in climate change mitigation and adaptation, from "The Times of India & JSW Foundation. The
latest award received by our EMS team is the "Quality Excellence Award for Environmental
Sustainability in February, 2015.
Tree Plantation will also be carried out in selected Air India offices.
5. CONCLUSION
In the past few years, Air India has emerged as the best airlines in India. Air India Company has
increased its Overseas routes to get full fledge global recognition, and services offered by Air
India has also been improved in terms of quality.
Air India has indulged into many CSR activities in the past few years. The company is
listed amongst many respected companies in India. One of the reasons that why people look
respectfully towards Air India is that, this company is more into social activities. Whether it is
any natural calamity or it is contributing for a social cause, Air India has always stepped forward
for it. Hence, it has emerged as a respected company/ airlines in India.
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6. BIBLIOGRAPHY
www.google.com
www. http://en.wikipedia.org/wiki/Air_India
home.airindia.in/SBCMS/Webpages/rop-brief.aspx
www.economictimes.com
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