India’s national flag carrier, Air India is an airline in trouble!To stay on course Air india is struggling , braving the tumultous winds of losses and debt that are trying to buffet it to the ground which is caught in the turbulent winds of an economic downturn that is affecting most countries and airlines over the world.
Let us not be too pessimistic as it is yet to happen. To turn the company’s fortune around Arvindh Jadhav, Managing Director and Chairman, Air India has taken a leaf out of Malaysian Airline’s book to implement a plan of action, and as Indians we would have an inherent desire for its survival. Air India Booking.
Some of the problems that the airline will need to overcome in order to succeed are:
Slackening demand for air travel due to the recession currently gripping the world
Soaring fuel prices
Airlines that have greater access to our Indian market and the fierce competetion among them
High interest rates due to the ambitious purchase plan for new planes
Huge debt running into crores
The Plan
Let the stakeholders know: By being open and blunt about the truth of the airline’s condition the idea was to do what Malaysian airlines had done, namely, create a crisis. The aggressive actions being taken to rationalize costs, improve revenue and change incentive models for employees as well as the integration of Air India and Indian Airlines all combined should bode well for the carrier’s turn around.
Drastic measures: To retrench the employees above the age of 55 and to also stop contract labour are some of the suggestions that have been put forward for dastric measures. Due to the government’s intervention the only place where no retrenchment has taken place is the merge of Air India and Indian airlines. Another measure is to give up the iconic buildings in Mumbai and New Delhi that have housed the airlines rather than lose them. Heavy downsizing in terms of both people and aircraft is now seen as the need of the hour.
Bring in the leaders: Re-establishment of leadership, getting the best private managers to run the airline, engaging an international airline expert to give advice and guidance is a suggestion given. Decisions would include the freedom to increase fares, change flight frequencies, remove routes and cut costs which would therefore need freedom to act, make decisions and carry them out.
Tap private sector talent: In reconstructing the airline the key element would be going after stratergic leadership. This approach has been successfully tried by many other international airlines. Seek out the international senior management capable of managing commercial operations and fleet development and the airline will begin its turnaround is the verdict.
Go for a new network and new fleet: There will be a big yield of results if changes are made to the airline’s flight schedule. Cut out all the loss making sectors – operating to sectors where we do not make a profit is not done! Realignment of flights will result in a more profitable utilization of the airline’s planes and ground assets.
In all good conscience it cannot be let to sink into the ground though the plan is ambitious is what one would say and the Air India dates back to the 1930s and holds an iconic stature in India.
Air India Flights
Air India Flights
