Air India – Game over?

A national airline, it paved the path of manyemployees’ June salary has been delayed to
private carriers like Jet and Kingfisher to serve15th of this month and the top management had
the Indian market. Air India is a pioneer in theto forego their entire June salary.
Indian aviation industry. It was one of the bestAir India got its first major shake up today as
airlines in Asia and the world.two of its senior directors getting reassigned and
That was then. The recession of 2007-2009 tookthe government questioning the recruitment of
a toll on Air India, as with the case of many300 retired AI officials in the past 3 years. No one
airlines globally. Alitalia, the Italian carrier wentknows what happening next. The future of every
bankrupt and till date, about 30 airlines all acrossAI employee hangs in the balance, as they
have shut down their shops or are looking foreagerly wait for the next update. The
buyers. Air India is no exception. Being a premierrestructuring plan is falling in place and many senior
public sector company, it has employed a largeheads are going to roll. Many lower level
number of men and women for variousemployees going to lose their jobs. British
operations. Their future looks in grave doubt now.Airways, last month had asked about 1000
A week ago, the union civil aviation minister Prafulemployees to work without any pay. Not sure if
Patel gave Air India a 30 day ultimatum to cut thethe same model is going to work with Air India
fat and restructure it completely. He alsothough. There is a cloud of uncertainty in every
mentioned disinvesting a sizeable amount, and getquarter of this great airline.
private players to come in. Air India in reality, is anThe steps taken by the government and the
overstaffed organization. Of late, the professionalairline are in the right tune. Though restructuring
standards, upon which the very ethos of thismay not be the only step, it must ensure to give
organization rested, have taken a nosedive.their laid off employees a decent severance pay,
Due to the high oil price of H1 2008, the globaland ease out non performing assets. Voluntary
recession and the swine flu, Air India’sretirements can be an option as well. Tough times
backbone is almost broken now and it is on thecall for tougher measures. This is the only way by
brink of being wiped out. More than 30,000which we can revive the great brand, Air India.