...Write up on Case Study of Air India Airlines Group Members: Anukriti Dave Nitu Thomas Vishwa Patel Air Indian Airlines into trouble 1. Introduction Success of the Airline Industry depends on cordial relationship between the employers and the employees. Inflexibilities in deployment of the workforce, supported by rigidity in labor legislation, have all added to the woes and have now begun to affect employment generation as well. All these changes are believed to have impacted employment and employee relations and therefore, resulted in catastrophic breakdowns in industrial relations across the country. Being held at a time when the business scenario is proving to be a challenge for both employees and employers as businesses come under increasing pressure to keep stakeholders satisfied. These changes have implications both for the organization and the employees. As a consequence the nature of relationship between the employees and the employer is impacted. Industrial disputes are a menace to industry and society. Managing an Airline is unique and challenging, the quality of services of Airline heavily depends on the quality of human resource it deploys. Airline companies must have potential human resource policies that help the organization to attain its goals, enable it to employ the skills and abilities of the workforce efficiently, assist to bring about employees job satisfaction and self-actualization and establishing and maintaining harmonious Employer-Employee Relations...
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...1. Understand the relationship between strategic management and leadership 1.1 Air India comes directly under the Ministry of Civil Aviation, Government of India. The Board of directors and CMD have to work under the guidance of bureaucrats and politicians. What in your opinion have been the influence and effect of such a leadership and the strategic management and decisions taken on Air India over a period of time? (Criteria 1.1 Explain the link between strategic management and leadership) Next page 1.1.1 The Initial Surge • The airline made a net profit of US$2 million and increased revenue by 15% in the 2005 financial year. This success initially showed how Air India was flourishing in the earlier years under the Indian Government. • They were following the Trait Theory and the leaders are characterized with some specific activities. 1.1.2 The Influence • To ensure its business and technical staff could maintain and use the system, the company sent 40 employees to Oracle University. They were more employee oriented leaders, but when gradually, the Ministry of Civil Aviation had to work under the guidance of bureaucrats and politicians, they became more product oriented leaders the amount of losses were huge. • With this drastic change we could sum it up as follows With reference to Behavioral Theory, within the managerial grid , we can observe a shift from A to C With reference...
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...Problems: 1. Was not prepared for competition it started getting after the liberilastion of the economy in 1990. 2. Bloated workforce. Air india has 28000 permanent work staff , doubles jets head count. It operates 127 aircraft , compared with jets 115. 3. Highest employees per aircraft in the world. 200:1 whereas desirable is 130-170 :1 4. Bad management and faulty policies has brought air india to this crisis level. 5. A culture of complete sloth in administration. 6. Complete lack of ownership. 7. Lack of responsibility for results and failures. 8. Deeply ingrained corruption in all levels. 9. Instead of renting out unused iconic portions of Nariman point building , for the huge sum the debt ridden airline is paying Rs. 22 lakh each month for its upkeep , 15 of its 23 florrs are lying vacant. 10. Old gas guzzling aircrafts still running 11. Poor marketing and campaign management competitiors like spice jet and kingfisher do effective marketing. 12. Employees not paid salaries. 13. Employee strikes further taking it out of business and competitors taking advantage. 14. The airline has not posted a profit since merging with duopoly partner Indian Airlines in 2007 and relies on hand outs from new delhi to survive. Flight to survival: It needs to 1. Secure a massive debt and operational overhaul if it is to survive in a market growing at 20% a year. 2. $ 4 billion of working capital debt 3. Privatisation...
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...1st AVIATION The Penniless Maharaja Replacing the top executive at Air India will not abate the airline’s financial woes ANJULI BHARGAVA 08 May 2009 | Not Profitable: Many believe Air India does not need all the planes it has ordered (Pic by: Satheesh Nair) | Even as Air India goes through a messy change in leadership, the airline’s financial position is becoming untenable — the financial losses for the year ending March 2009 are estimated at Rs 4,200 crore, according to top airline sources. The airline’s working capital limit is Rs 15,000 crore, of which Rs 14,600 crore has been exhausted and it will be seeking an increase in the limit from banks. The firm already has Rs 15,000 crore of long-term loans for its 21-odd new planes, which have arrived, that it needs to service. This will go up to Rs 25,000 crore soon as it securing another $2 billion loan to acquire more aircraft. However, there seems to be no way to repay even the existing debts, as there are no surpluses. The airline is running a monthly deficit of Rs 300 crore and a recent statement of the airline said the cash deficit in the first six months of fiscal 2009 will be Rs 1,380 crore. The statement, however, seems hastily prepared as it assumes a monthly collection of Rs 1,300 crore, which is impossible in the airline industry — seasonality ensures that revenues vary widely from month to month. “Air India is a time bomb awaiting the next government that comes into power,” says a top civil...
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...ROLE OF AUTOMOBILE SECTOR IN INDIA ON AIR POLLUTION & REMEDIESTAKEN BY THE INDUSTRY AND THE GOVERNMENT REPORT FOR ENVIRONMENTAL STUDIES COURSE, TERM VI UNDER THE GUIDANCE OF PROF. SURYANARAYANAN, FACULTY AT XAVIER INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP, BANGALORE SAMUEL N ISAIAH 137, BATCH 17 TABLE OF CONTENTS Page No. | Topic | | Prologue | | Introduction | | Vehicular Pollutants & Environmental Effects | | Health & Environmental Effects of Vehicular Pollutants | | Green Vehicles in India | | Challenges for Green Vehicles | | Opportunities for Indian Automotive Industry in Green Vehicles | | Bibliography | PROLOGUE The growing cities, sharp increasing traffic, trajectory growth, rapid economic development and industrialization, and higher levels of energy consumption has resulted in increase of pollution load in the urban environment. It is also accepted that automobiles have emerged as a critical source of urban air pollution specially in the developing world. Realizing the gravity of the problem, steps are being taken to introduce better technologies, better technologies, better fuel quality, shift to environment friendly fuels, and mass transit system for the control of environmental pollution in urban areas. Not only the central and state governments, but even automobile manufacturers in India have been developing strategies for mitigation measures to improve the urban air quality and make the cities cleaner...
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...employees of Air India walked out of their assigned duty stations on May 25, 2010 afternoon protesting against a gag order against speaking out in public issued by the management after the crash at Mangalore airport on May 22, 2010. The Air India employees went on strike also to protest a delay in payment of salaries and problems relating to the working conditions of the cabin crew. Several flights all over India were cancelled and passengers were left stranded at major airports causing them to vent their anger against the “National” carrier. The Air India Management had mustered all available resources to minimize the impact on the scheduled operations. The timing of this strike has also caused grave repercussions to the National carrier amidst the fatal air crash at Mangalore Airport killing most of the passengers and crew onboard. Air India issued a statement saying that, a large number of employees volunteered to assist and be available at the disaster site for helping Air India deal with the Mangalore tragedy and reach out to the people. During the hour of crisis, the Management should have united its employees to join hands to strengthen the airline and maintain high performance to show that Air India can cope up with any emergency rather than issue gag orders on its employees to keep the internal matters under wrap and not disclose it to the media. But one must remember that the airline officials were busy trying to pacify the families of the victims of the air crash during...
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...domestic air route was opened between Delhi and Karachi by The Indian State Air Services (in collaboration with Imperial Airways of the UK). This marked a new beginning in India. Three years later, Tata Sons started a regular airmail service between Karachi and Madras. At that time, there were a few transport companies operating within and also beyond the frontiers of the country, carrying both air cargo and passengers. Some of these were Tata Airlines, Indian National Airways, Air Service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways. The Tata Airlines was converted into a public limited company in the year 1946 and renamed Air India Limited. In 1948 a joint sector company-Air India International was established by the Government of India and Air India headed by J.R.D. Tata. In 1953, the Parliament passed the Air Corporation Act. Air India International and Indian Airlines Corporation came into formal existence and Air India International was nationalized. The Indian Aviation sector was liberalized in commence in 1990 with private sector players being allowed to operate as air taxi operators in India. A number of private players commenced domestic operations like Damania, East-West, Modiluft, Air Sahara and NEPC, entered the industry. However, a decade later none of them have survived. Today the Indian Aviation sector is dotted with new players like Air Deccan, Indian Airlines, SpiceJet, GoAir, Air Indigo,...
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...BCCA’S INSTITUTE OF MANAGEMENT STUDIES Nesbit Road, MAZAGAON, MUMBAI – 10 V SEMESTER :______________________________________ NAME OF STUDENT : CLASS : T.Y.B.M.S DIV : 000 SUBJECT : 0000000000 TOPIC : RISE & FALL IN THE AVIATION INDUSTRY NAME OF PROFESSOR : 000000000 ____________________________ _____________________________ SIGNATURE OF STUDENT SIGNATURE OF PROFFESSOR ________________________ _______________________ MAX. MARKS OBT. MARKS ABSTRACT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO...
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...Human Resource Management Case Analysis on Grievance Issues Related to Air India Submitted By : Sapana Sarawagi (MS-49) Sonam Gensapa (MS-52) Sandeep Jorasia ( MS-46) Case: Air India employees go on a strike after their grievances regarding parity in wages, delay in payment of their salaries and issues relating to working conditions could not be resolved. Currently the issue is going on as they have threatened to go on a strike on March 9, 2011. Background: In May 2007, India's Ministry of Civil Aviation announced that Air India Limited (AI), India's national flag carrier and Indian Airlines Limited (IA), the government owned domestic airline, would merge with effect from July 15, 2007.1 The new airline formed by the merger was to be called 'Air India,' and would operate in both the domestic and international sectors. The AI-IA merger was expected to create one of the biggest airlines in the world in terms of the fleet size. According to information posted on IA's website, the increasingly intense competition faced by AI and IA from private and global airline companies, was the main reason for the merger of the two airlines. . However, the proposed merger was not without its share of critics. Initially there was opposition from the employees of the two airlines as they feared that the merger would result in job cuts. The Aviation Minister, Praful Patel, had allayed their fears and assured the employees unions of the two airlines that employment conditions...
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...East west airlines, ModiLuft, Damania Airways, Gujarat Airways and Span Air came into emergence, but only Jet airways and Sahara Airlines survived. Air Deccan in 2003, with the concept of low cost carrier came changing the aviation industry. Thus SpiceJet, a rebirth of ModiLuft, entered market with fares as low as Rs.99 with its first flight commencing between Delhi-Ahmedabad- Mumbai. It targeted the cost conscious customers and had high utilization factor by being more time in air. It received competition from its peers, IndiGo, JetKonnect, Kingfisher Red etc. Employee shortage, poor infrastructure, high cost of ATF were some of the factors affecting the operations of SpiceJet. Ans 2: In 1930’s Tata group launched its first airlines as Tata Airlines. In 1953, Air corporations Act was reformed and nationalization of airlines took place. The existing airlines, were merged and called Indian Airlines Corporation for domestic services and Air India for international services. After the LPG policy by 1994, there were 6 private players in the aviation sector but only 2 survived by the end of 2003 i.e. Jet airways and Sahara airlines. The entry of first LCC of Air Deccan, proved to be a turning point in the aviation sector. Special discounts, check fares, promotional fares, web fares and corporate discount plans etc formed the part of LCC. India being the fastest growing economy, saw a CAGR of 19.14 % in air traffic and 9.91% in cargo movement with funds flowing in for infrastructure...
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...did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? * Tata Group; India’s prominent business house; launched Tata Airlines in 1930s. Over the next two decades, eight more private companies entered the field, entry was slightly restricted. * Flying was a dream for the middle class populace of India. Emergence Of LCC was mostly to target this middle class segment. * Air Corporations Act which was formulated in 1953 transformed the existing airlines into two nationalized entities: Indian Airlines Corporation (IA) for domestic services and Air India Corporation (AI) for international services. The Act restricted private players from operating across India * Progressively, Private sector was allowed to re-enter the market, beginning in the early 1990s during the first phase of economic liberalization in India. * By 1994, the government had approved six private carriers including Jet Airways, Air Sahara, Damania Airways, NEPC Airlines, Modiluft and East West Airlines to commence domestic operations. Only the two private carriers Jet Airways and Sahara Airlines had survived by the year 2003; but this duopoly was challenged by Air Deccan in the year 2003 by the introduction of the first ever LCC in India which was a turning point in the Indian Aviation Industry wherein the traditional economy and business fares were replaced by special discounts, promotional fares, and corporate discounts. * India, being one of the fastest growing...
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...and its Effect on National Airlines of India By Shree Neve. 1. Introduction A company is politically connected with a politician if one of the company’s large shareholder or its top officer is: (a) a member of parliament (MP), (b) a minister or the head of state, or (c) closely related to a top official (Faccio, 2006). A company can have a politically connected individual in various scenarios: (a) either at a top most position of the company, (b) either as a large stakeholder, or (c) national ministry in-charge of a national company. The state owned enterprises (SOE’s) have direct political connections as they are completely governed and controlled by the ruling state party. SOE’s are an integral part of the nation’s economy, its welfare and social responsibility. SOE’s can raise the nation’s economy to humongous levels if managed efficiently by the responsible politicians and individuals handling the SOE. However, using SOE’s for individual benefits and not for national economy can have adverse effects on the SOE leading to huge losses of nation’s economy. Consequently, in some cases a politically connected firm can use its political ties for increase a firm’s performance and overall productivity but in some scenarios a politically connected firm can support a politician connected to gain personal benefits. 2. Downfall of the great Red Indian Maharaja, Air India A typical case of India’s national airline carrier Air India during the regime of Mr. Praful Patel from...
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...Connectivity is the backbone of today's global economy--bringing people to business, tourists to vacation destinations and products to markets. All are important to India's development. On an average, Indians travel by plane once in ten years, while Americans travel 1.8 times each year. If Indians travelled as frequently as Americans, the market would be 2.1 billion travelers instead of today's 120 million. But instead of flourishing and delivering economic benefits, India's aviation industry is struggling. The twin shocks of skyrocketing oil prices followed by the global financial crisis hit in 2008-just as India was gearing up for high speed aviation growth. Four years later, the sector's recovery is hampered by high taxes, insufficient infrastructure, high costs and restrictive investment policies. AAI against Kolkata, Chennai airport privatisation Airports Authority of India (AAI) is opposed to the government's proposal of privatising the Kolkata and Chennai airports, its highest revenue earners, arguing that it is well equipped to manage the facilities, and such decisions can merely undermine the public sector. Criticising Planning Commission's logic that slow commercial decision-making at AAI was the reason for privatisation of these two airports, senior officials at the PSU expressed fear about the state-owned company's fate if management of all good airports is taken away from it. "Why aren't the rigid checks and balances relaxed a little for us? Then, we will also...
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...Q.1How did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? Aviation industry in India was born in the year 1930.Tata group one of the prominent industry in India launched Tata airlines (India’s first airline services) After the emergence of the airline industry in India, after two decades more eight private players started their business but their operations were quite restricted. These airlines proved to be a failure despite constant support from the government. As a result Air traffic enquiry committee was formed constituted by government of India recommended the nationalization of airlines. The air corporations Act 1953 was formulated and the two entities were nationalized namely Indian airlines corporation (IA) and Air India International (AI). The act restricted private players until 1986. In 1990’s private sector was allowed to reenter the market with the wave of the economic liberalization. This was the time when LCC concept in India was brought into picture in the Indian market. By March 1994 the government had approved six private carriers to commence the domestic services. But despite two carriers all others closed and filed insolvency. This duopoly continued till 2003, this duopoly was challenged by air Deccan in 2003 with its concept of LCC which made this industry emerge in India which proved to be a turning point in this industry. Air Deccan with its entry brought into picture special discounts, promotional fares, check...
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