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Jitender Bhargava
Former Executive Director, Air India
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Air India crisis


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  • Last night Arnab kept shouting his lungs out on a discussion in you were a participant. He kept harping on isues that he was fed by his team on the reasons why the Pilots are agitaing i.e Insisting flying first class even at the cost of a fare paying passenger (They travel subject to load), insistance of flying the dreamliner of the promotion with their erstwhile IA Pilots (Now that the merger has been promulgated there is no reason that the promotion prospect has to be different Pilots). He did not let the discussion progress away from the limited knowledge he had. There were other major issues than that meets the eye like the issue of a lopsided merger, false assiurances given to the pilots and staff to tide away immediate problem, management always bending when the threat of strike looms large(This has been happening for years) no relook at the policies post merger on aspects like ACM travel, promotion policy, selection for training to name a few of them. what is youtr take on the above. Asked by: ANNOMOMOUS
  • I agree that the discussion did not address the main concerns but it is nice to see Mr Ajit Singh admitting that merger was a mistake. The question what can be done to rectify the situation. i have in my piece in today's Financial Express named the people responsible for it.
  • I am sure if you gather 10 Air India Frequent fliers and ask them what is the ailment , they will all have one answer in common " Merger of IA with AI " . Can it be rolled back Sir ? Asked by: Brijesh
  • Ajit Singh has admitted that the merger was amistake. difficult to undo.it may create a bigger mess.
  • It is a sad state for the erstwhile Maharaja of Indian Aviation. How could they recover? Maybe offer competitive prices and better attention to Customer demands. AI and IA merger has been a total failure . It is surprising that there are so many Govt backed projects that have failed after globalisation. Prime examples are BSNL and Indian Airlines. What is the reason? Is it because of the babudom prevalent in Govt agencies? Is it because of the reluctance to change? How do we address this? Asked by: Karthik
  • There are inherent weaknesses in government system right fromthe appointments to adminstration,political interference, misplaced priorities. PSUs are good for monopoly situation unless the systems areoverhauled.
  • Why not the company sack the all piolts as low category still not getting salary Asked by: Deepak
  • Sacking enmasse will mean closing the airline. low category staff will lose jobs in the process
  • Sir, why compansinate staff which they have not permanent after long service of 15 years and what about low category salary will be given as in june school will be reopen and all the employees are disturbed so how will they live their life as no future to them Asked by: Narendra
  • HR issues has been teh bane of AI. With government funding due, mgmt should be alble to pay soon
  • The Govt and the management have over the period of time succumbed to pressure from the Pilots Unions. This is the cause of reaching the situation in which we are in today. They have suspended pilots during the agitations and have subsequently reinstated them later on. I think the same scene is going to be repeated now. Asked by: Arun
  • Agreed, weak policies have led to the current situation. some drastic action is called for
  • The Govt and the management have managed to follow the policy of devide and rule and break the Pilot community pitching the Indian Airlines Union against the Air India Union. They are sitting and enjoying the devide and the loss is the public and the pilots. The pilots need to see through this design Asked by: Arun
  • Don't think pilots will allow that. current situation is morecomplex than meets the eye.
  • Hi Sir, Is any solution you have ? if the Pilots are not aggry in coming days ? waht is your step ? Asked by: VIJAY GUNJAWALE
  • Drastic measures aimed at future, not looking at the current impasse. if strikes have to continue, AI will have no future. Dialogue, making pilots see reason with no politicking will help solve the problem
  • Sir i have filght booked next week and there is no intimation yet on whether the strike is ending or not, by when can we get the status ???? its a pain to keep checking when no one at the desk is not answering our calls Asked by: Sheena
  • It is unfortunate that mgmt is not displaying status. They have today decided to stop future booking which means the immediate future is uncertain.
  • If I say its a mission possible rather than mission possible provided 1) Eliminate , not merely reduce the free trips by Govt bigwigs , existing and ex employees and family members 2) Suspend for a year all meals in domestic flights 3) Practice punctuality as earnestly as INDIGO and 4) Cut down flights to non-profitable sectors and 5) Drastically reduce the flab in the middle .... Am I wrong ? Asked by: Santanu
  • let me be frank. these objectives can't be attained in a govt set up. company will have to be governed professionally for it whichis unlikely to happen
  • Around 2006-2007, the airlines began showing signs of financial distress. The combined losses for Air India and Indian in 2006-07 were 770 crores ( 7.7 billion). After the merger of the airlines, this went up to 7,200 crores ( 72 billion) by March 2009. This was followed by restructuring plans which are still in progress. In July 2009, SBI Capital Markets was appointed to prepare a road map for the recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747-300M in March 2009 for $18.75 million to survive the financial crunch. Sir why is that AI being given such opulent treatment till date when the past has been so burdening . Asked by: Bhatia
  • the mess up took place in that period when the true financial situationwas kept under wraps delaying correcrtive action. Thulasidas, the cmd inthat period is accountable. Govt should have linked infusion of funds to elimination of prctices responsible for AI's failures.
  • There are systematic failures as how the Govt and Management moved ahead in the merger of IA and Air India. I saw a discussion on TV last night and it was clearly brought out that the pilots have been forced to agitate. The Management to fire fight have been assuring the pilots that their grieviences would be looked into. What Arnab said was the cause of the agitation like firsdt class seats at the cost of a fare paying passenger( I yt given subject to load) Insisting that they fly the dreamliner etc are not the only issues involved. i also feel the media has been given selective information and they blow it out of propotion. I at no stage am supporting the Pilots who have gone on strike illegally by not giving the required notice thereby inconveniencing the passengers. however doint ypou feel that we need to look at the grieiences wholisticaly and the managementbe taken to task for reaching such situation. Asked by: Arun
  • systemic failures are the cause. I have highlighted some of them in mypiece intoday's Financial Express. mgmt needs to be fair and take decisions which are incompany's interest. unfortunately,situation has been made complex by not dealing with it professionally. Pilots have also been a little adamant thanthey should been.
  • As a Passenger, if, because of the Strike My flight is cancelled, would the airlines make an alternate arrangement for me to fly from some other airlines (Without me paying any extra amount)? Asked by: PeopleSoft
  • Yes, they are obliged to do that
  • What are the Basic Demands of these pilots? Aren't they paid at par with the Industry Standards? Asked by: PeopleSoft
  • They are paid as well as anywhere in the world. Issues have been confused. fromtraining for 787 dreamliners to first class travel. IPG needs to comeout clearly as what are they seeking.
  • What is the Main reason of AI Pilots going on Strike? Why do they keep doing this Every alternative month? Asked by: PeopleSoft
  • the issue originally was of trtaining on new dreamliner aircraft. as erstwhile Indian Airlines pilots also wanted to be trained, problem arose. going on strikes, well they are still living in the legacies of te past whenAI was a monopoly player.
  • Is it not that AIR INDIA crisis has once again shown incompetiness of people who govern and administer India? Asked by: vinny
  • No one will dispute that AI lacks a professional management. one only hopes that the strike will make govt conscious of the need to run AI professionally and have a board of directors who can guide, a CEO who has domain knowledge and employees who are committed and not self servers. Overhaul of mgmt is imperative for AI's survival as money alone cannot ensure that.
  • Do you think aviation in India would come out of all these problems?? Its not only Air India... There are other airlines which are in debts... Everyone is blaming the pilots for the strike... Nobody cares the problems faced by pilots... Especially in a country like India... Do you think there is a way out for aviation in India?? Asked by: Sanjay Akella
  • systemic weaknesses are the cause of industry's problems. as long as ATF is priced 50% higher than elsewhere due taxes, no airline can break even resulting in cascading problems. Airlines also have to take the blame by chasing market share at the expense of profitability in the initial stages by offeringlow fares.
  • I have gone through the article you wrote in the Financial Express. You are right it is Praful patel, R K Singh and the then chairman who ae responsible for the mess created by the merger without homework being done. Is there no way that these individulals be investigated and punnishment given as they could have vested interests of creating choas and close down the National for the benifit of proivate players where I am made to believe these individuals have financial stakes. Do you agree/ Asked by: ANNOMOMOUS
  • wish our systems were such that guilty could be hauled up. You need a man like Subramaniam Swamy to take it to the logical end.
  • Sir, what according to you is the main issue behind Air India's recurring deficit ? Asked by: Shyam Vadalker
  • aquiring more aircraft than it could afford, merger, maladministration, wasteful expenses, unproductive practices, poor marketing and lack of commitment onthe part of most employees, particularly union leaders.
  • We are all getting a very gloomy picture . Is there really any light at the end of the tunnel ? Can't TATAs be invited for a last ditch effort ? Asked by: Saint Bernard
  • Difficult for even Tat's to help AI come out. the airline needs a total overhaul for which the owners, the govt. isnot ready.
  • Pilot Arrogance is unbelievable please don't reinstate the sacked ones, shouldn't indiscipline be accounted for? Asked by: Manish Sharma
  • Let us see what the government does
  • As of March 2011, Air India has accumulated a debt of Rs. 42,570 crore (approximately $10 billion) and an operating loss of Rs. 22,000 crore, and is seeking Rs. 42,920 crore from the government. For the past three months (June, July, August 2011), the carrier has been missing salary payments and interest payments and Moody’s Investor Service has warned that missing payments by Air India to creditors, such as the State Bank of India, will negatively affect the credit ratings of those banks. A report by the Comptroller and Auditor General (CAG) blamed the decision to buy 111 new planes as one of the major causes of the debt troubles in Air India; in addition it blamed on the ill timed merger with Indian Airlines as well,.Sir Now Whom To blame ? Asked by: Bhatia
  • it is a dismal picture on all fronts.
  • Why should a tax payer who never flies, pay for the airline bail out when farmers are committing suicide for indebtness? Asked by: Manish Sharma
  • Most people will agree with you but the losses were caused because of certain decisions taken in the recent past.
  • SIR, WHENEVER THEIR IS A PILOT STRIKE. I HEAR "PILOTS ARE ARROGANT, HIGHLY PAID AND DEMANDING". IF THIS IS SO , WHO IS RESPONSIBLE FOR THIS ?. MAY BE TO SOME EXTENT PEOPLE LIKE U IN THE PAST ACCEPTING THEIR DEMANDS. OR MAY BE THEIR IS A HYPE IN THE STATEMENT QUOTED ABOVE. BUT WHATEVER IT IS, I PERSONALLY FEEL POLITICAL INTERFERENCE, AND THE POLICY OF THE MGT IS RESPONSIBLE. THEN IN THIS CASE MGT SHOULD SIT MAKE A PROGRAMME FOR EXIT POLICY OR SLOWLY SHUT DOWN AND CLOSE THE BUSINESS AND RESTART FROM THE SCRAP. EVEN IN MONOPOLY GAME CHILDREN PLAY, AIRTRANSPORT IS NOT WORTH INVESTING. GOVT SHOULD TAKE A DECISION AND COME OUT OF ALL SERVICE INDUSTRY IN A PHASED MANNE. NEXT WILL BE RAILWAYS. Asked by: RAJESH
  • Yes, airline industry is a low margin industry. Pilots are being paid as per global income patterns and one shouldn't grudge that. what is wrong is the way they have gone on a strike. for a good future, AI will have to rethink as past practices of monopolynera will not help.
  • Bhargava Ji, What do you think impact of Middle East Airlines in India. They have taken bulk share of International routes, do you feel Government wantedly turned blind eye to them. Asked by: MURALI KRISHNA HARI
  • yes, they have been unfortunately been allowed to become our national carriers.
  • The culmination is easy to visualise. With Kingfisher already in a mess the Govt can illafford to take drastic steps against Pilots as thsi would lead to chaos. The Pilots would be hoodwinked and promised the sky and the suspended pilots would be reimnstated. This is the scene we have seen earlier and continue to see in future. Asked by: Arun
  • we should wait to see how the situation develops. With allround criticism of pilots' action, it may not e easy this time around.
  • The new Chairman and Managing director wants to change the order of some of the 111 planes ordered in 2006 to get narrow-body aircraft instead of the wide-body aircraft. On May 4th, 2012, the airline was fined $80,000 by the U.S Transportation Department for failing to post customer service and tarmac delay contingency plans on its website and adequately inform passengers about its optional fees. On May 8th, 2012 about 100 pilots went on medical leave as a mark of protest while their talks with the management were still on. 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. Sir what does the future of the airlines hold , In ten years from now where would the airline be Asked by: Bhatia
  • Underlines the need for a professional management with domain knowledge. as long as no one is held accountable we will continue to hear about these unsavoury developments
  • What about the pilots who got sacked?? Will they be reinstated ?? It would be better if the government scraps the airline... Atleast that would save the government some money.. Or probably scrap the entire aviation industry in India... That would be a better option to save the face of India... Asked by: Sanjay Akella
  • the country can't do without the airline industry. as regarding reinstatement of pilots,let us see how the developments unfold.
  • I feel that with the present situation, there would'nt be any aircraft taking off or landing in India... Atleast now the government has to change the rules and help General Aviation prosper in India... Which in turn helps the airlines to come back into profits... Asked by: Sanjay Akella
  • Right, govt needs to take a hard look at the industry. it can't be used for earning money only. Airline promoters also can't absolve themselves of blame.
  • why is the 'turn-around' plan taking so long to change things around? or is it that for the last 3 years, no one has been able to come up with a real sustainable turn-around plan? Asked by: Vinay Shrivastav
  • Very unfortunate. Turnaround plan on paper only! Even now there is little of action. Government will have to be serious to start the process
  • How do you suggest way out of current crisis? Asked by: SANJAY GUTPA
  • Call off the strike, better wisdom on all sides. Discuss issues in a transparent manner and overhaul the airline systems keeping long term interests in view
  • How is Indigo my preferred airlines managing to give such lovely services. they have a lean and trim compared to Air India where due to political and union problems the staff is old and difficult to inculcate high quality the service industry demands. Dont you feel tha we need to ive VRS to these staff and build up a team which can compete with the best in the industry. I knoew it is difficult but we need to make a start one day we woiuld achieve the unthinkable. else we would continue to face the peresent problems nad try and catch our tails. Asked by: Arun
  • Good, professional mgmt. A new company in any sector performs better due introduction of better practices. How did Indigo beat Jet Airways, only coz it came inlater with new practices, systems.
  • All said and done we love our Air India. We don't want them to fly unceremoniously into History ? Is there any measure left out other than prayers ? Asked by: Dinesh
  • I don't think even prayers will get answered till a sincere effort is made to salvage the airline. No sincerely in evidence.
  • Is it true that one of the demands of the Pilots is travelling First class as an ACM over the fare paying passengers? If it is true they need to understand that this privilege is only given provided subjecyt to load. Asked by: ANNOMOMOUS
  • some confusion but if there is a demand of this kind it should never be conceded.

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Jitender Bhargava
Former Executive Director, Air India

Air India crisis