Saturday, July 4, 2009

Air India debacle
















Air India, India's official airline carrier is certainly in a doom state. Last month, it stopped salry of its employees. But the real question is why Air India is a state of debacle, while other Airlinw players in Indian airspace, though not making that much profit, but still performing far better ter than the Indian national carrier.

The reason for a debacle can be :

1. Air India system is surrounded by n numbers of bureaucrat, which are running this organization as a social enterprise rather than a capitalist enterprise.

2. Even in its dismissal economic position, Air India top management still enjoy the free passes not for them but for their entire family. Thus making this institution a debt ridden instituion.

3. Air India, still don't follow any strategic tie ups with other International airlines, thus making them aloof in their business. Look at the other national carrier like Luftansa and Emirates, bith both the carriers are making fablous business.

4. Air India employ more no. of employee per aircraft then any of the airline carrier in the country, which in turn sucking its profits.

I think Air India should bring in top professional to its board, who can try to revive this failing organization.

Thanks&Regards,
Mohit Kumar

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