From Manual Pricing to chatGPT under Tata for Air India
According to the news agency Reuters, competing airlines have long employed algorithm-based software, but Air India, controlled by the Tata Group, is progressively switching to it to increase the amount of money it can make from each flight. Prior to recently, the national carrier's manual pricing method was out-of-date and used to set rates.
The airline is experiencing change under its new owner Tata Group, the article said. The famous chatbot from OpenAI and ChatGPT is currently being tested by Air India to replace paper-based procedures.
In order to reclaim passengers from the Emirates of Dubai and formidable domestic competitor IndiGo, Air India is attempting to abandon its ten-year-old bureaucratic strategy.
While Air India attempts to get rid of decades-old bureaucratic procedures, the drive towards modernization highlights the damage left behind by years of underinvestment.
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This week, Chief Executive Officer (CEO) Campbell Wilson said to Indian airline executives, "Frankly the system is nearly so terrible it's excellent. This offers the ability to start from scratch rather than "jury-rig" current infrastructure."
Air India is merging with Vistara, while low-cost Air India Express and AirAsia India are also coming together, in addition to overhauling every area of operations, from systems to supply chains.
The 52-year-old New Zealander told Reuters that some fields, like technology, allow for a fresh start, which is why he is placing artificial intelligence (AI) and other tools at the centre of Air India's relaunch.
Instead of the outdated practice of having one fare for each block of seats, modern "revenue management" software constantly anticipates where passengers want to travel and how much each individual flyer is willing to pay.
As a result, the company's transformation has low-hanging fruit since the revenue per flight increases.
- Wilson must navigate a maze of fleets and personnel that is as difficult to navigate as Delhi's winding roads, making it difficult for the airline to succeed.
- According to Keith McMullan, a partner of the UK-based firm Aviation Strategies with knowledge of the Indian business, "Complexity is the scourge of airlines."
- They should start again with a clean sheet of paper, as they are advocating, he said, but saying it and actually doing it are two very different things. The risk lies in continuing to put out legacy-related flames.
- The success of Air India is crucial for Prime Minister Narendra Modi's administration because it aims to use its size and influence to make India a global aviation power like Dubai or Singapore.
In order to get idle planes flying before Air India begins receiving the 470 aeroplanes it acquired in a record deal last month, Wilson's immediate game plan is to address critical issues.
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For instance, rather than waiting for vendors to provide the outdated parts, it is collaborating with Tata Technology to manufacture some plastic components for economy-class seats locally.
Also, it is revamping its network strategy to draw Indians abroad while seizing whatever available planes it can find on lease.
Wilson stated in an interview conducted last week on the sidelines of the CAPA India conference that any anomalies may be straightened out as the turnaround gains speed. Wilson, who was chosen to head the turnaround last year by Tata after it took control of the carrier, said, "This is a metamorphosis as well as a start-up."
Analysts predict that once Air India completes the twin mergers, Wilson's phased recovery plans would be put to a serious test.
The consolidation of airlines in India has not been particularly successful, with Air India still suffering from the disastrous 2007 integration of Indian Airlines. They suffered for years as a result of Kingfisher's merger with Air Deccan and Jet Airlines' acquisition of Sahara.