| Font Size |
This will bring down AI’s employees-per-aircraft ratio from a highly uncompetitive 230:1 to a globally accepted 100-150:1.
Minutes of Civil Aviation Minister Praful Patel meeting at the Prime Minister’s Office last month, available with The Indian Express, indicate that the decision was reached after detailed discussions on the carrier’s mounting losses and a presentation by Civil Aviation Secretary M Nambiar.
Top government sources told The Express that around 15,000 employees will be absorbed in the SBUs, which the government expects will become independent profit centres once they are operational.
“The two Maintenance, Repair and Overhaul (MRO) joint ventures with Boeing and Airbus will absorb around 5,000-6,000 employees. The ground handling joint venture with Singapore firm SATS is expected to absorb another 8,000-9,000. These SBUs will be hived off to become independent profit centres,” said a senior official.
For speedy operationalisation of airline’s subsidiary businesses, AI plans to re-designate an existing management position as Executive Director of Corporate Strategy.
AI CMD Arvind Jadhav has asked for finalization of employees service rules and regulations and performance-related standard operating procedures in order to fast-track the integration of the old Air India and Indian Airlines staff. The airline will draw up an action plan for the next 6 months, which will be part of the turnaround plan to be submitted to the government.
The Finance Ministry will review the pricing for aviation fuel, which accounts for 30-40 per cent of an airline’s operational costs and accord it ‘declared goods’ status. The move will bring down sales tax to 4 per cent, which is currently 24 per cent in some states. The Ministry will also ask government servants to fly only AI on official trips.
It was also decided at the meeting that the Petroleum and Natural Gas Ministry will intervene with oil marketing companies to provide a six-month credit line to the carrier.
AI will leverage its properties and other real estate assets to generate additional revenues and bring in cash, said an official. “It will also undertake rent-reduction,” he added.
Discuss this story on expressindia forums
|
|
By whom'directions profitable routes were cut.What action have been taken against him.Who are the persons,accepted defected leased aircraft due to which AI suffered a loss of several crores.Action should be taken against Representatives of Mgmt Who signed an agreement of PLI without evaluting their actual work.In fact they gave such a big amount so that money can be drained to their personal accts. there for recovery should be made from pilots, engineers,managers and desision takeing bodies including minister PRIOR TO GIVE BAILOUT
the national carrier was doing just fine bfr mr patel became the aviation minister.ai never had to borrow ever to run itself
the national carrier was doing just fine bfr mr patel became the aviation minister.ai never had to borrow ever to run itself
who hired the excess staff in ai?or did they thmseleves forcibly get jobs they wanted
First and foremost there should be an enquiry into why some high capacity high revenue flight routes were stopped suddenly by AI and private airlines started their flights on the exact same routes on same schedule. There is a deep nexus betwen authorities who bleed AI for private party benefit.
Let the Govt. cut all the fringe benefits given to retired AI employees such as free travel for all AI kids until death. A decent ration should be 1:60 per plane not 100-150 but still much better than 230 which is currently has. Also, give golden handshake to all inflight crew who are not in tip top condition.
Mr Praful Patel is a well known figure, when AI was bleeding white he wanted his relatives and friends to avail upgrades- it seems he is not only shameless creature also a person not worth the salt he has in in this country who has given many rights to foreign agents for selling AI tickets. Five years and somebody wakes up today and says that the house is on fire. Remeber Praful does not posses a car like many politicos- his election returns filed recently the biggest joke this country has ever heard of. I think his babbling day in and day out is not going to help AI any more. He should be sacked from the cabinet itself. What does the PM say for his 100 day agenda? Any takers? world class railways,world class budget and world class stock market is there for everyone to see. We Indians will be bled by these Unworthy politicos and bureaucrats and later cry wolf. In a way we all are responsible to the state of affairs be farmers suicide,Naxals or the newly coined terrorists. Go PATEL GO!
First of all AI has to immeiatly 'wrapup' the 48 or so Exe.Dir. posts relook directors presntly holding board membership,revert all artificialy created posts for promotions,rationalize foreign postings on merit-presently scychopahncy,abolish foreign based Exe. Dir.,freeze on high end rentals and out leasing of highly priced accomodations in India/abroad, stop furnishings of all accomodations of ALL executives. This would create some heartburns and remonstrations by the high and politically mighty who should be quitely told to which direction the door is. Freeze PLI for all and work out a mechanism for attracting the bold,sincere and worthy people within the ranks. Investigate the honchos who gave flying rights to foreign carriers for free tickets. In fact re-work the whole system being carried out by the earlier CMDs and MDs politically appointed, functionally naive. Enquire the aircrat purchase and gifts of assets to private parties. SBUs are workable and sincere people to head them.
No! Tata and all should refuse to help AI. It is the only way these politicians will know that industrialists are NOT going to help them when they get themselves in such deep red. We should recall that AI was taken from JRD Tata forcibly. He was not allowed to head it properly. Now, the government does this to the airline and calls top honchos to clear the mess up.I'm a supporter of Ayn Rand's philosophy. 'Atlas Shrugged' is a novel by her which details exactly such a scenario. Note that this is exactly what has happened to dear AI...
Yes, Praful is also responsible for this mess.percentage 70%-Employees 10% and Unions 20% What was Congress doing all these 5 Yrs.scraching their Ass?.Why Victimise employee's and throw them out?. why can't Minister be thrown out?.Why can't Minister Cut unwanted Expenses?.Who will feed Employee's families?. will Sonia and Co., do it?
The Government decision atlast to cut down the superfluous staff by half,(coveniently the other half being relocated,hopefully not to spawn fresh 'cancers'), requesting Ratan Tata, and to completely overhall the staff,is most welcome;it is a clear pointer to other such 'sick' industries and enterprises sucking their life blood and draining public money. This 'miracle' could not possibly happen without the well-known courageous attitude and strong caveats from your paper.The large number of readers who fearlessly, also added their comments, no doubt feel elated that such a concerted and consructive effort is strengthening our lawmakers to take bold steps to shape Government policy.' Tally ho" for fresh endeavours !!!
Mr. Praful Patel has woken up now!! What was he doing for the last five years....sleeping....Why should we have such a minister who caused the country's state airline to slip into such a mess....such ministers should be sacked immediately...who donot do their job....He says staff will be redeployed...who recruited them in the first place?....The need is more to make these lousy AI employees work and improve their efficiency...rather than sit around on their fat as....es. and the only way to ensure this is to privatise this white elephant guzzling taxpayers hard earned money year after year....
Now, Praful wants to cut down the number of Air India employees and may be after sometime he realizes the need to have new employees. He starts with trial and error methods and this is going to affect employees' careers. What is required is to deploy staff only with utmost requirement, get the work done in a most effective and efficient way, and close monitoring and supevision of employees' performance persuading them and defining clearly their accountability to achieve short-term and long-term objectives. Let them and all top officials including Aviation Minister himself put in extra efforts towards the direction of improving overall standards of Air India and allies. When required to recruit, past employees should be given an opportunity to get reinstated. As Indian passengers, we are ashamed of such airlines flying abroad. Government just talk about "World Class and International Standards" (Railway Minister on Rly. Budget), but we need to watch and learn world standards first.
Why AI staff is proposed to be kept at half level whereas 1/4 staff can do much more than the present strength. Make me the Head and I will make the people understand how to work.
The government decision to reduce 50% staff of AI is a good decision. This decision should have been taken about 15 years ago. It is a luxury to have extreme flab in every aircraft by way of manpower by using the taxpayers money. Itis high time for the Government to sell this junk to any bidder at the earliest.
Praful Patel - in order to get heavy kickbacks from pvt airlines to meet next assembly polls will go to any extent to ensure Air India is cremeated at the earliest. Everyone is aware how the top officials sold Centaur for a song and rewarded with heavy kickbacks. If he has some shame, Praful Patel should resign not only from his present post, but from Public life, as he is the root cause of most of the evils.
This money guzzling inefficient jumbo with a over 2000 staff for every aircraft is a drain on tax payers money. Please sell it lock stock and barrel to any bidder