How do you solve a problem like Air India?

The Prime Minister apparently has ordered a complete revamp to revive Air India. Will it work?
An advisory board consisting of Mr Ratan Tata, Mr N. R. Narayana Murthy and Mr S. Ramadorai is being spoken of, along with former heads of Singapore Airlines and Lufthansa. Will they be able to turn Air India around?
The question that should be addressed is: “Will they be allowed to turn Air India around?” All of them come from a culture where performance and proficiency is the yardstick.
Air India is drowning in a political quagmire. Is the Prime Minister willing to stick his neck out in an atmosphere where vote-banks count more than economics?
Assembly elections are round the corner. Two key States — Maharashtra and West Bengal — are in the picture. Knowing Ms Mamata Banerjee’s anathema towards Mr Ratan Tata, will she allow him to function and will the Prime Minister have the political will to counter that?
The Civil Aviation Minister cannot shy away from the responsibility for the mess in Air India. He fathered the merger of AI and IA and created the big mess. Will the PM have the political will to apportion blame?
Everyone talks about the excess number of employees in AI when compared to other international airlines. The number quoted — 46,500 employees for 147 aircraft, or the ratio of 330 employees per aircraft, does not give the true picture of who is responsible. Will the PM and the expert committee go back 20 years to identify the root cause?
The overstaffing of Air India and Indian Airlines began in the late 1980s, when the politicians ‘mandalised’ the aviation system. Both the national carriers were converted from professional to political outfits.
The IAS lobby took over the running of the airlines. Staff requirements were never analysed or questioned. The priority was “how to please the master”
Nepotism and favouritism took over and professionalism took a back seat. In every department, posts and vacancies were created with two objectives. First, to meet the reservation criteria and, second, to create positions for their sons and daughters. The CMDs in the early 1990s resorted to indiscriminate wage agreements to prevent an exodus of employees to foreign and private airlines. Along with the mushrooming growth of airlines, corruption reared its head.
Ever since the Airbus 320 kickback drama started, every succeeding government stalled the induction of new aircraft for the national carrier.The need of the hour, today, is to retire old aircraft and induct modern, fuel-efficient ones.
For almost 30 years, the national carriers have been messed up and, yet, the revamp is targeted in 30 days! That shows the fallibility of the plan.
11/07/09 A. Ranganathan/The Hindu

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Categories: NACIL Jul 2009