Air India has appointed an international consultancy firm -- Cato Purnell Partners -- to give it a branding makeover for the forthcoming Commonwealth Games at a cost of over $1.6 million, the Rajya Sabha was informed today.
"Cato Purnell Partners have been appointed by the National Aviation Company of India Ltd (NACIL) to revitalise its brand identity, and the fees payable to them would be around $1,612,750 plus taxes," Civil Aviation Minister Praful Patel said in a written reply to the Rajya Sabha.
The tie-up will help develop an identity and broader visual language that would allow NACIL to be seen as a meaningful partner to the games, Patel added.
The consultant would also help the national carrier develop a migration strategy and design, and revitalise the Air India brand, he said.
Replying to a separate question, Patel said Air India had suffered losses of Rs 13,430 crore in the last three years.
"Air India incurred a loss of Rs 2,226.16 crore and Rs 5,548.26 crore during financial year 2007-08 and 2008-09 respectively. Air India is expected to incur a loss of Rs 5,656.52 crore during the year 2009-10," he said.
The Civil Aviation Minister said, "The losses are mainly due to the prevalent economic recession, low yields and load factors -- coupled with higher fuel costs."
Meanwhile, NACIL has already put its turnaround plan into action by implementing a revenue enhancement-cum-cost reduction programme that involves fleet rationalisation and route profitability, Patel said.
Additional measures to cut costs, such as wage rationalisation, are also part of the turnaround process (of Air India), he added.
