Showing posts with label air india. Show all posts
Showing posts with label air india. Show all posts
New Delhi: Air India unions are likely to meet next week in the national capital to discuss their strategy amid the government going ahead with the disinvestment process.
People familiar with the matter say efforts are on to bring all staff unions of Air India including those of the pilots and engineers on one platform and work out a strategy to deal with the situation arising out of the government’s decision to offload its stake in the flag carrier.
Air India, which has over 20,000
employees on its roll, has as many as six recognised unions, representing
ground and commercial staff, pilots, cabin crew and engineers, among others,
besides, several unrecognised unions.
To revive the loss-making state-run
carrier, which also has a debt burden of over Rs 50,000 crore, the government
has decided to go for its strategic disinvestment and the modalities are being
worked out by a Group of Ministers headed by Finance Minister Arun Jaitley.
The Cabinet Committee on Economic
Affairs (CCEA) had on June 28 given in-principle nod for strategic divestment
of Air India and five of its subsidiaries. The government has already
invited applications for engaging up to two advisers, a legal adviser and asset
valuer for the strategic disinvestment of Air India and its subsidiaries/ joint
venture.
The finance ministry, which has been pumping small doses of money every year into Air India, seems reluctant to spend more. The airline had landed up in this situation because of the loans it had taken to add some 111 aircraft to its ageing and depleted fleet.
Earlier this month, Tata conglomerate showed interest in bidding for Air India as the group needs to increase the sizes of its aviation business.
According to media reports, some companies including low-cost Indian carrier IndiGo, owned by InterGlobe Aviation, ground handling company Bird Group and Turkey’s Celebi Aviation Holdings have expressed an interest in buying some of Air India’s various businesses.
The finance ministry, which has been pumping small doses of money every year into Air India, seems reluctant to spend more. The airline had landed up in this situation because of the loans it had taken to add some 111 aircraft to its ageing and depleted fleet.
Earlier this month, Tata conglomerate showed interest in bidding for Air India as the group needs to increase the sizes of its aviation business.
According to media reports, some companies including low-cost Indian carrier IndiGo, owned by InterGlobe Aviation, ground handling company Bird Group and Turkey’s Celebi Aviation Holdings have expressed an interest in buying some of Air India’s various businesses.
Cost consciousness is one of the core areas that can improve the financial of Air India and employees must ensure that not even a single 'paisa' is wasted for a better future, airline chief Rajiv Bansal has said. Bansal, who took over the charge of the top position in the disinvestment-bound airline in late August, in a message to the employees, has also urged them to be economical and adopt thrifty work practises without compromising with safety and quality.
"Cost consciousness is another core area to improve the financial health of the company. While we strive to make improvements in our services, be it in-flight catering or entertainment, aircraft cabin ambiance, lounges and offices, we must ensure that not even a single 'paisa' is wasted," Bansal said.
The Government-run Air India has a little over 21,000 employees on its payroll.
"We ought to shun all avoidable and wasteful expenditure and adopt thrifty work practises without compromising with safety and quality," the Air India Chairman and Managing Director said in the message.
As per the provisional numbers announced by the Government in July, the airline's net loss after tax narrowed to Rs 3,643 crore and operating profit rose to Rs 300 crore in the last financial year.
The airline had posted a net loss of Rs 3,836.77 crore and an operating profit of Rs 105 crore in 2015-16 fiscal.
However, the expenditure went up to Rs 25,789 crore in the last financial year, as per the provisional numbers.
In 2015-16, the same was lower at Rs 24,361.33 crore.
The Air India chief also said since his assuming the charge of the airline he has been "focusing upon a few core areas which play a vital role in determining the success of a service company like ours."
Ensuring that AI flights leave on-time and its customers are satisfied is extremely important to generate brand loyalty, he said.
Surviving on a ten-year bailout package amounting to Rs 30,231 crore which began from 2012, the airline is currently in the disinvestment process.
The Cabinet Committee on Economic Affairs (CCEA) gave its in-principle nod for the strategic disinvestment of the airline which has a debt burden of more than Rs 50,000 crore in June this year.
Bansal, in his message, also said "whether it is our personal or professional front, we need to tighten our belt and face the challenging financial situation with grit and determination."
The strength of an organisation lies in its disciplined and committed workforce, he said adding, "it is, therefore, essential that we dedicate ourselves to these core values of punctuality, fitness, cleanliness and cost consciousness for a brighter future ahead."
source: businesstoday
source: businesstoday
