How To Ground An Airline
AI’s fortunes have taken a nosedive in the past six years
- Micro-management: Minister Praful Patel micro-manages the airline; management decisions emanate from his ministry HQ. Has strained relations with CMD Arvind Jadhav, who has a mind of his own.
- Morale: Professionalism takes backseat, top management unable or unwilling to read the changing market conditions. AI’s 11 MDs in the past 20 years had an average tenure of a year—with two exceptions.
- Merger: The 2007 merger between A-I and IA is widely slammed. AI still has an average of two managers per position, staff strength is three times what’s required, and it has a non-integrated fleet.
- Bilaterals: Massive additional air traffic rights granted to foreign carriers after 2004-05. But merged AI/IA is not in a position to increase capacity, leading to a fatal loss of marketshare. ...