Uneasy numbers stacked against Air India
State-run Air India, which enjoyed a monopoly in the country till the deregulation of the aviation sector in 1991, is besieged by ballooning debt and a litany of woes, pushing it to the brink of collapse.
Unless, of course, the central government steps in to bail out the national flag carrier.
Air India is now seeking a 39.81 billion rupees package from the state, though the airline has been asked to come out with a plan of action to make its existence viable.
The money may come as federal aid in the form of equity and loan.
But some say the airline needs a credible action plan to rescue it.
The civil aviation ministry says the 31,000 workforce should be trimmed to keep it viable. Estimates put the average number of employees per aircraft at nearly 1:230, while as per international standards, an airline needs 1:100 -150 employees.
Others question whether the ministry, which presides over the National Aviation Company Ltd created to run the merged Indian and Air India, can absolve itself from the faultlines posed by the bloated workforce.
Like what they says in west first create a monster and than kill it.
Our Goverment in the name of privatisation and opening up of doors to foreign and private player killer our demon. And create monster situations. I am quite surpirse to hear lots of critical comments on babu and beauracts. I do agree they are all much more responsible for this dibacle. But is the disinvestment is the only solution. Are we now at that point where No national Pride Means to us. National Carrier not only carry national flag but also a symbol of the respective conutry in outlan.
Look at singapore Airlines Emirates, They all run effectivly with gud service and margin of profit with high end counsumer to mid segment consumer too. And more over they are carry the pride of their respectives states.
But how and why all it happens. A interesting article on rediff news published some day back . Give an full details on the revival and resons for the failure of this mehmoth.
Any way we can still take this out from trouble by doing things in positive way and wiling to do. Think of the staffs of this institution. There moral must be at deep earth low . Willing to performe must have died.
We need a revival financially and morally both. A road Map which can not only create revenue but also pride to run this.
A Govt who act like a pimp to foreign and pvt players looks in so hurry that wanna to sell this country assest in fast. Are they nuts who will simply allow thier AIRspace in other hands. Go to any major international AiRport they have dedicated corrider for thier state run AIRLINES and here our company behaved like a step brother or even worse. why Indigo can have 87 points. can’t INDIAN not achive this. They can but need to change with time and keep the essence of Indian in it. I wish We must understand one point at this time. -
If we not preserve our state resources now than this country will be run by DHUGS and OUTLANDER and policis taken in the interest of their monetary benefit. Dont Make this happen other wise next time we will not have Gandhi or Azad to fight for it.
Thought for food- “When we got a cut in our hand, we not cutout entire hand but try to cure the cut and find out the reason to avoid further cut.”