How will the merger of Indian and AI help in terms of route distribution and profitability of the new entity?
The merged airline is working towards providing seamless connectivity of regional operations, short to medium haul trunk operation, and long haul operation – thus offering improved product through wider network coverage. The new airline is the largest in the country with a fleet size of almost 120 aircrafts, comparable to other airlines in Asia and more aircrafts are on order. It is enabling the enentity to have national and international footprints, achieve synergies, and reduce costs. The merger will also provide significance synergy for procurement, sales and distribution, besides affording an opportunity for elaborating common assets.
What about the other logistical issues, best management practices, allocation of cadre and staff, division of labour, trade unions, and hierarchy? The interests of the employees have been taken due care of through the scheme of amalgamation approved by the ministry of corporate affairs. All employees of the erstwhile Indian, and Air India, have become employees of NACIL without any breach or interruption of service and on terms and conditions not less favorable than those applicable to them earlier. A three-tier grievance redressal machinery has been put into place to address employee grievances.
AI has offices on stations that do not have any flights. What are you going to do with these extra stations?
Air India is re-working its route plans, and with acquisition of more aircrafts, it plans to connect many more places where hitherto it was not able to, operate to due to the lack of availability of aircrafts.
Are you thinking in terms of increasing the number of flights, and is there any positive movement towards signing more bilaterals?
Traffic rights of international operations are specified in the bilateral air services agreement with foreign countries, which are reviewed from time to time as part of ongoing process depending upon traffic demand, balance of benefit to our carriers, overall interest of national economy, diplomatic and political consideration. Actual operations including route selection are however left to the commercial judgment of the airlines. Presently, India has air services agreements with more than 100 countries.
How do you balance the government’s commitment to social security which means no retrenchment or golden handshakes, and economic common sense which emphasises on trimming staff and maximising output?
In the aviation sector because of its phenomenal growth there has been no need to cut down on staff. In the airport sector, the AAI is modernising 35 non-metro airports and bring them to world-class level. Besides, a number of unused airports and air strips are being made operational and, hence, the question of decreasing staff strength in this sector does not arise. Even for the merged airlines, Air India, the requirement of staff strength will only go up as new aircrafts, orders for which have already been placed, are being delivered and as the airlines scales up its operations. What about disinvestment?
Air India is expected to bring out its IPO towards the end of this year. The airline will be working out details of this programme along with its consultant for the consideration of the government.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
The merged airline is working towards providing seamless connectivity of regional operations, short to medium haul trunk operation, and long haul operation – thus offering improved product through wider network coverage. The new airline is the largest in the country with a fleet size of almost 120 aircrafts, comparable to other airlines in Asia and more aircrafts are on order. It is enabling the enentity to have national and international footprints, achieve synergies, and reduce costs. The merger will also provide significance synergy for procurement, sales and distribution, besides affording an opportunity for elaborating common assets.
What about the other logistical issues, best management practices, allocation of cadre and staff, division of labour, trade unions, and hierarchy? The interests of the employees have been taken due care of through the scheme of amalgamation approved by the ministry of corporate affairs. All employees of the erstwhile Indian, and Air India, have become employees of NACIL without any breach or interruption of service and on terms and conditions not less favorable than those applicable to them earlier. A three-tier grievance redressal machinery has been put into place to address employee grievances.
AI has offices on stations that do not have any flights. What are you going to do with these extra stations?
Air India is re-working its route plans, and with acquisition of more aircrafts, it plans to connect many more places where hitherto it was not able to, operate to due to the lack of availability of aircrafts.
Are you thinking in terms of increasing the number of flights, and is there any positive movement towards signing more bilaterals?
Traffic rights of international operations are specified in the bilateral air services agreement with foreign countries, which are reviewed from time to time as part of ongoing process depending upon traffic demand, balance of benefit to our carriers, overall interest of national economy, diplomatic and political consideration. Actual operations including route selection are however left to the commercial judgment of the airlines. Presently, India has air services agreements with more than 100 countries.
How do you balance the government’s commitment to social security which means no retrenchment or golden handshakes, and economic common sense which emphasises on trimming staff and maximising output?
In the aviation sector because of its phenomenal growth there has been no need to cut down on staff. In the airport sector, the AAI is modernising 35 non-metro airports and bring them to world-class level. Besides, a number of unused airports and air strips are being made operational and, hence, the question of decreasing staff strength in this sector does not arise. Even for the merged airlines, Air India, the requirement of staff strength will only go up as new aircrafts, orders for which have already been placed, are being delivered and as the airlines scales up its operations. What about disinvestment?
Air India is expected to bring out its IPO towards the end of this year. The airline will be working out details of this programme along with its consultant for the consideration of the government.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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