Indian Airlines HR Problems
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TROUBLED SKIES
Frequent agitations was not the only problem that IA
faced in the area of human resources. There were issues that had been either
neglected or mismanaged.
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For instance, the rates of highly subsidized canteen
items were not revised even once in three decades and there was no
policy on fixing rates. Various allowances such as out-of-pocket
expenses, experience allowance, simulator allowance etc. were paid to
those who were not strictly eligible for these. Excessive expenditure
was incurred on benefits given to senior executives such as retention of
company car, and room air-conditioners even after retirement. All these
problems had a negative impact on divestment procedure.
This did not augur well for any of the parties involved, as
privatization was expected to give the IA management an opportunity to
make the venture a commercially viable one. Freed from its political and
social obligations, the carrier would be in a much better position to
handle its labor problems. The biggest beneficiaries would be perhaps
the passengers, who would get better services from the airline. |
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QUESTIONS FOR DISCUSSION:
1. Analyze the developments in the Indian civil
aviation industry after the sector was opened up for the private
players. Evaluate IA's performance. Why do you think IA failed to retain
its market share against competitors like Jet Airways?
2. IA's human resource problems can largely be attributed to its poor
human resource management policies. Do you agree? Give reasons to
support your stand.
ADDITIONAL READINGS & REFERENCES:
1. Sanjeev Sharma, In Air Pocket, March 27, 1995,
Business Today.
2. Rakhi Mazumdar & Anjan Mitra, IA, Alliance Air wage disparity issue
unresolved, January 24, 1997, Business Standard.
3. Sengupta Snigdha, Indian Airlines pilots call off strike, January 28,
1997, Business Standard.
4. IA awaits govt decision on Kelkar committee report, February 22, 1997,
Business Standard.
5. Flying high, August 12, 1997, Business Standard.
6. Bhargava Anjuli, Ministry finds Brar report on IA recast too hot to
handle, January 7, 1998, Business Standard
7. Panel seeks further study on airport privatisation, April 26, 1999,
Business Standard.
8. Crasta Jivitha, The battle for the skies, May 25, 1999, Business Standard
9. Lahiri Jaideep, Will Even Divestment Make Indian Airlines Airworthy?,
July 7, 1999, Business Today.
10. Go slow, fly low, April 27, 2000, Hindustan Times.
11. www.cagindia.org.
12. www.indiainfoline.com.
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