Friday, July 10, 2009

Air India - Flying on dark clouds..


The Maharaja which used to be the big daddy of the Indian Airline sector is diving south on a fast pace..
The losses are mounting and it is looking forward to the govt for some bailout..
The maharaja is not able to come out and even the chairman cum managing director of the airlines Mr.Arvind Jadhav is reluctant to speak about it...
Bold
Problems :-

a) Revenues falling
b) Excess no.of employees
c) Obsolete aircraft's
d) Political Interference
e) Improper Management

Reasons :-

a) 46,500 employees for 147 aircrafts or 330 employees per aircraft.A no.far ahead of other airlines.
b) Offices with excess staff in foreign locations which is increasing costs in foreign currency..and has been born by the exchequer.
c) Repeatedly canceling orders for Airbus A320 which was the need of the hour..As the airline is using old Boeing 747 which are depreciated to a large extent.
d) By political interference and cast ism creating new vacancies and posts in the airline for the near and dear ones.
e) Negligence on the part of govt to look at the operations as well as the fuel prices at which it is buying fuel.
f) Indiscriminate wage agreements with the employees on a continous basis...which led to a big hole in the airline's wallet.
f) Not operating properly in the lucrative routes which can earn huge revenues.
g) Providing licenses to the private players on the basis of undertable enquiries ,Silenced accident investigations ,Rules flouted are just some of the nuts and bolts of the aviation management which is the cause of the airline to be in such a gloomy state...

Disclaimer: Expressed views are of my own.

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