Saturday, August 29, 2009

Air India

Just read this here that the Centre will infuse additional equity in Air India.

Any prizes for guessing whether the money will make Air India an intensively competitive world class airline? Or whether you hear the hear of money sucked down the drain?

The answer for it is not far to seek. First of all, the government has no business running an airline, much less an airline that has been sucking and blowing up money all along. That being said, if an airline has to be run it has to be run profitably. And to do so, employees, management alike need to think of it like a business and not like a personal fiefdom. And that is a big cultural change.

Bloated staff, Unions which have no incentive to work, air ghostesses and a mentality that treats people who fly on it like cattle and cabbage means the direction of the airline is down. Of course, there are sectors where cattle and cabbage treatment is de-rigeur and for them the airline is a flying state transport bus. In those sectors surely they will do well...

But all in all, it is a perfect case study of what not to do...

1 comment:

barbadkatte said...

Money could have been better spent by giving 10K as capital to 5 million poor folks, with the condition that they "pay it forward"