After deliberating for almost three years, the cabinet finally cleared a massive Rs 30,000 crore revival package for Air India, which includes an equity infusion of about Rs 6,000 crore besides sovereign guarantees and debt restructuring. But such a bailout, using taxpayer money to just about keep the state-owned carrier afloat, does not pave the way for a successful turnaround. The airline has a host of problems, government mismanagement being the foremost.
There are several pre-requisites for things to go according to the government’s plan on Air India. To begin with, it is necessary to hand over the leadership role to professionals who are best qualified to make good use of the financial bonanza. In the last four years, Air India has seen three chief executives at its helm, two of whom could not complete their full term. All three have been government officials on deputation, with their confidential reports written by the civil aviation secretary. So, more often than not, they had to toe the ministry’s line or be in the line of fire themselves. With 28,500 permanent staff and 10,000 on contract, it is a no-brainer that the organisation is bloated. Manpower and wage rationalisation is the only way forward. It may be difficult to fire staff in PSUs, but it’s high time the board presented a credible VRS to prune its workforce.
16/04/12 Indian Express
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment