In a fresh wave of deregulation, nine new independent airlines were launched in India in the early s. The case also throws light on other lapses such as poor canteen management and payment of excessive allowances. For the last two years, Capa has advocated that AI should be placed under special administration similar to that adopted for Satyam if any meaningful progress is to be achieved," said Kapil Kaul, chief executive, South Asia, Capa.While 7, employees will be moved to the engineering subsidiary called Air India Engineering Services Ltd, the balance will migrate to the ground handling arm called Air India Transport Services Ltd. This competition from the new private carriers required the airline to adapt to the new order, a process which was difficult due to the fact that management did not have complete commercial freedom, and the government was unwilling to invest in the airline. Flying Low Indian Airlines IA - the name of India's national carrier conjured up an image of a monopoly gone berserk with the absolute power it had over the market. IA's employee unions were rather notorious for resorting to industrial action on the slightest pretext and their arm-twisting tactics to get their demands accepted by the management. Chairman and managing director L. This would bring down AI's employee strength to 10, and with aircraft in its fleet, the employee per aircraft ratio will come down to 82 from The recruitment and creation of posts in IA was done without proper scientific analysis of the manpower requirements of the organization. Vayudoot, the state-owned feeder airline, itself collapsed in The case also provides insights into how IA''s lackadaisical handling of its HR problems contributed to the overall mess that the airline found itself in. It started with about 99 aircrafts and was the outcome of a merger of sorts among several former independent airlines. The students should be able to see how the pilots and other workers used arm-twisting tactics to get IA to agree to all their demands.
Do you think privatisation would solve the problems at IA? The students should be able to see how the pilots and other workers used arm-twisting tactics to get IA to agree to all their demands.
Vayudoot, the state-owned feeder airline, itself collapsed in To view more free cases, please visit our site at frequent intervals. Amidst strong opposition by the employees, the disinvestment plans dragged on well into mid However, only two strong competitors emerged during the s which were the Jet Airways and Air Sahara.
For example: Would you agree that the management''s attitude was largely responsible for the problems at IA?
According to experts, now that a partial lockout is apprehended due to the chain of strikes, the government should immediately start an aggressive plan to offer voluntary retirement scheme VRS to reduce the workforce and contain the unrest by offering an attractive package.