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MEENAL SANTANI (039)SWATI LUTHRA (054)

Air India is the flag carrier airline of India. It is part of the Government of India owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Europe and North America.

Its corporate office is located at the Air India Building at Nariman Point in South Mumbai.

Two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport.

International hub at Dubai International Airport is currently being planned.

Founded by JRD TATA in 1932.

1953 Indian Govt. acquired major stake.

Renamed to Air India Ltd. In 1996.

In 2006 the airlines began showing signs of financial distress.

In 2007 Air India and Indian Airlines senselessly merged along with their subsidiaries to form Air India Limited.

Already reeling under financial crunch because of the 10 day pilot strike, Air India finds itself in a tight spot as State-run oil refuse to supply the fuel to the bleeding carrier.

Combined losses for Air India and Indian Airlines were 770 crores (7.7 billion).

After the merger of the airlines, this went up to 7,200 crores(72 billion).

Air India has accumulated a debt of Rs. 42,570 crores(approximately $10 billion) and an operating loss of Rs. 22,000 crores, and is seeking Rs. 42,920 crores from the government.

Due to high fuel and loan costs, Indian government has already pumped 32 billion rupees into Air India since April 2009 and then government bailed out Air India Ltd.

The carrier invited offers from banks to raise up $ 800 million via external commercial borrowing and bridge financing. This was stated in the documents put up on the carrier's website.

1) About 100 pilots went on medical leave as a mark of protest while their talks with the management were still on.

2) The reason the pilot members of IPG went on mass sick leave, protesting the move to provide Boeing-787 Dreamliner training to pilots from the erstwhile Indian Airlines.

3) Later, the same day it sacked ten agitating pilots and de-recognized their union after 160 pilots failed to join duty by the given deadline.

4) After putting forth an original list of 14 demands, the aviators are now asking for reinstatement of their 101 sacked colleagues.

The pilots have been on strike for more than 50 days, making it the longest running pilots' strike in the last 40 years.

UNIONS VIEW:

The derecognized unions released a press note saying that the strike is the longest strike in the last 40 years.

The airline, then, started dialogue with the pilots on strike and they were back to work in a week. "This means that if the airline wants, it can open dialogue with the pilots. The idea is to resolve differences, improve working conditions and service more passengers," an airline official said.

Union civil aviation minister Ajit Singh appealed the pilots to resume work

The government has already given a package of Rs 30,000 crores for the revival of Air India. But, money alone cannot solve the problem.

The government will not adopt a victimization policy, and whatever problems they have will be sorted out in three months, he said.

"No recruitment action has been initiated by the Air India management. Air India has also prepared a Voluntary Retirement Scheme for its employees," Singh said.

MANAGEMENT’S VIEW

“If passengers are unhappy, it would create more problems in days to come. If the airline does not survive, then there is no meaning of other things like salary, promotion or increment.”

PILOTS' STRIKE: AIR INDIA LOSES Rs 500CR, EXTENDS CONTINGENCY PLAN TILL JULY

Losses of about Rs10 crore per day

Under the interim schedule, Air India would operate 38 international flights per day instead of 45 that it operates under normal conditions.

QUES 1: Has the management been insensitive to pilots’ concerns, forcing them into unreasonable behavior?

No demand, no matter how genuine, can justify a strike in today’s situation. Successive managements have also been insensitive to issues raised by the unions. This is because of a weak HR setup, lack of structured policies and their inconsistent application.

QUES 2:The root cause of much of the strife in AI seems to be the merger (of Indian Airlines and Air India) that led to the formation of a unified carrier. Can the two sets of employees think of themselves as one unit?

ANS: Merger is undoubtedly at the root of the current problems.

Political interference involved in running of this government-backed carrier.

The first batch of pilots were sent by the airline management to Singapore for B787 training.

When the 32 pilots are back after completing their B787 training, the airline management has asked them to do a refresher course and go back to flying A320 aircraft, which is the one they flew before they were sent for the Dreamliner training.

“Had they reached an agreement with the AI pilots on their career progression issue before sending the pilots for training the strike would not have happened,'' said an airline top official.

Air India crisis has shocked the whole nation .Pilots refusing to fly while Management refusing to talks has disturbed the air traffic of India so much that people are now relying on Trains for any Business Class Travel needs.

Air India is at war, with itself.

In 2007, the government had merged Air India (AI) and Indian Airlines (IA) to make one of the largest airlines in the world by fleet-size and manpower. Five years down the road, it has come not to be.

Insiders today say that though they sit in the same offices and share a common brand name, the split is wide open, as two systems compete to run one airline.

Not just pilots and the cabin crew, even managers and junior staff from both sides fight over allowances, pay scales and even holidays.

“The merger created problems that cannot be solved. Our grades, work, promotions and allowances are different. When you see your colleague from the other cadre doing the same work, but getting easy promotions, allowances, there is bound to be resentment,” a senior official with the operations arm told this correspondent on condition of anonymity.

“The company below the rank of DGM (deputy general manger) is not at all integrated. There are two systems of promotions, allowances and even foreign postings.”

Differentiation in income and allowances between AI and IA pilots.

Issue of promotion.

Legal proceedings involved in the end of the strike

The 58-day protracted strike by Air India pilots was called off on 4th July after the Delhi high court asked them to join duty within 48 hours and the management to sympathetically consider their grievances.

The decision to end the strike was announced by the Indian Pilots' Guild (IPG) after a meeting of its managing committee in Mumbai.

In the late night statement, the IPG thanked the Indian judiciary, especially the Delhi high court, "for mediating in this issue, which is critical to the survival of Air India and is in the national interest".

The IPG statement came after its counsel, Geeta Luthra, told the high court that the striking pilots numbering 434 will join their duties in 48 hours by giving joining reports.

"The AI management shall sympathetically consider the grievances of the pilots including the aspect of reinstatement of those pilots whose services were terminated as a consequence to their strike," Justice Khetrapal said.

Earlier, the IPG welcomed the high court's order. "The court has made very positive observations. It has said that all pilots should be taken back and no distinction should be made between those sacked and others. We are happy with the court's observations," IPG joint secretary TauseefMukadamn said.

Root of the problem is with the untimely and misjudged merger of the two airlines.

Measures have to be taken up so as to conclude the misunderstandings between the management and the unions.

If this is not feasible then it is time that the Airlines split from their troublesome merger as suggested by industry experts so as to the root problem will be hence solved.

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