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Monday, 10 July 2017

FROM RIPLEY: THE MAHARAJA TURNS HIS VASSALS VEGETARIAN

THE LIMIT OF IDIOSYNCRASY


Since 1982, the troubled national carrier Air India (AI) has earned the dubious distinction of being an airline with the highest number of employees on its rolls per aircraft as it has been hiring staff to oblige political bosses who run the government. According to industry sources, no reputed airline in the world has an employee-to-aircraft ratio as high as that of AI with 27,000 employees in 2012 (rectified to 40,000 in 2015), a staggering ratio of 328 employees per aircraft.

Figures for efficient Airlines are 127 per aircraft at Lufthansa (38,000 employees: 299 aircraft), 140 at Singapore Airlines (14,000 employees with 100 aircraft) and 178 employees per aircraft at British Airways. 

"It is a fact that they are overstaffed. Positions were created to please political bosses. Staff was not hired according to operational requirements. People were hired not for competence but for connections," said Captain Mohan Ranganathan, an aviation safety consultant. With taxpayer's money utilised to save AI year after year, voices were inevitably raised to prune the airline's staff strength to make it economically viable. “The deadwood needs to be removed," Ranganathan added. HOW? It is simply not possible to remove a single employee, as they are protected by Unions. It is the only airline that allows unsightly and overweight 55-yr old mothers of three-possibly grandmas too-to fly as Cabin Crew. 

"The second highest liability of AI is overstaffing next only to the Rs 50,000 crore debt," says Captain G. R. Gopinath, the founder of Air Deccan. Scaling down the number of employees and cutting their fat pay packets forms part of the turnaround plan of the loss-making airline but these crucial steps have not been implemented. Yes, it launched an aggressive voluntary retirement scheme (VRS) immediately to downsize the airline, which was running up a wage bill of Rs 4,500 cr annually. Less than 400 employees left, as the employees were very comfortable in their cushy jobs.

Even the modest plan to prune 10 per cent of the staff strength through VRS has not been implemented as political will is lacking. "It is a sorry plight that Air India does not have the right business plan and model which is adding to its woes," said Kapil Kaul, chief executive officer, South Asia, Centre for Asia Pacific Aviation (Capa). But the grapevine spilled its secrets-AI was the prime carrier of Politicos and Babus, that too in 1st class, leave alone executive class. 

THE WHITE LIE

Out of the blue, on Oct 9, 2015 came a bolt of lightning. “AI cuts down staff-per-aircraft ratio from 300 to 108 in 2 yrs.” The hierarchy claimed that Air India had successfully reduced its air the aircraft-to-employee ratio from 300 per flight to 108, cutting it down by almost two-third in the last two years and improving on the time its aircraft remain in the air. "It has increased turn-around time for every flight and increased the number of hours an aircraft remains in the sky," an airline official. THIS IS ABSOLUTE BULLSHIT. The mega money-drain now claims to have the lowest employee to aircraft ratio in the world! IN THE WORLD!!! They simply changed the nomenclature of 25,000 employees.

For once, the proper decision has been taken  ̶  Get rid of the pink elephant. But then, which fool will want to take over an inefficient, slothful, indolent and diatribe-ready set of loss makers with equally inefficient operating status, laden with crippling debts nearing 55,000 cr? When you take over 122 aircraft, 40,000+ employees, you take over unknown secrets that will tumble out of Ma Hubbard’s cupboard only after the deed is done. 

Once the nation's largest carrier (funny, there was no competition), its market share in the booming domestic market has slumped to 13 percent as private carriers such as IndiGo, Spicejet and Jet Airways have grown. Previous attempts to offload the airline have been unsuccessful. If Modi can pull this off, it will bolster his credentials as a reformer bold enough to take on some of the country's most obdurate problems. A BJP labour union has opposed the idea of a sale already. 

And the joke of the day: The national carrier has stopped serving non-vegetarian food in the economy class for all flights in the domestic sector with immediate effect. This is aimed at cutting costs! All of Rs. 30,000 per day. 1-1.2 cr per year, the salary of 2 junior Captains. Passengers in the business and first class will not be affected.
 

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