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This project was done long back as part of my 5th sem course, and yes, i surfed every nook and corner of this earth and ended up meeting this awesome slides share website. I will be very honest that i clubbed two different projects and added little more extra masala to update IA's present situation, i worked more on presenting the present status of IA, that part of sweat shed really worked out to impress my classmates and lecturers because i knew, just like me, many would have got ready made things. uniqueness is what most appreciated, let it be even a little effort to change.
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WHY IS HR ESSENTIAL TODAY?
HR ISSUES OF
INDIAN AIRLINES (AIR INDIA)
Presentation by-
REETA SENACHA. NEETA SENACHA. LEENA A. REKHA CHOUDHARY. NAMRATHA SHARMA
BBM III YEAR
INTRODUCTION Indian Airlines was established in 1953 Headquarter in Mumbai. On 27 February 2011, Air India and Indian
Airlines merged along with their subsidiaries to form Air India Limited.
It covers 75 destinations (59 within India and 16 abroad)
With a fleet of over 130 aircrafts. IA and Alliance Air carried over 7.5 million
passengers annually.
PROBLEMS FACED BY IA -
Competitors- Sahara, Jet Airways and others.
Inefficiency and excessive expenditure on human resources.
Staff cost increased by Rs 5.9 billion . Frequent losses Govt. interference.
During 1994-98 losses were Rs 5.9bn and By 1999 the losses touched Rs 7.5bn
1994-981998-99
0
1
2
3
4
5
6
7
8
in billion
IA v/s Pvt. Players
47%53%
Market Shares
IAprivate players
HR ISSUES- Pilots and crew members used unscrupulous
methods to force the management to agree to all their demands.
Strikes, go-slow agitations and wage negotiations were common.
For each strike there was a different reason, pressurizing IA for more money.
There were 13 agitations by 8 different unions. The pilots began the agitation demanding higher
allowances for flying in international sectors
HR ISSUES (cont.)-
They then refused to fly with people re-employed on a contract basis.
Thereafter they went on a strike, saying that the cabin crew earned higher wages than them.
Another agitation, with many pilots reporting sick at the same
Asking for increased foreign allowances, fixed flying hours, free meals and wage parity with Alliance Air.
Solution It is the case of “Collective Bargaining”. Introduce variable pay and reduce basic pay
which is purely based on performance. Government appoint a committee to look into the
matter and find the problem and suggest appropriate steps which could resolve the matter.
IA should introduce some non monetary benefits which could increase employee satisfaction.
RECENT HR ISSUES (JUNE 2012) FACED AND SUGGESTIONS.
Air India has a five-day week; Indian Airlines has a six-day week.
Indian Airlines pilots were promoted unconditionally once in six years while Air India pilots complained they got their turn after 10 years - if there was a vacancy.
The ground handling teams of the two airlines continue to operate separately.
Suggestions Align staff by role, bring in lateral hires,
overhaul customer facing functions, and implement a massive training exercise.
Rein in pilots and engineers, even if it means a partial lockout.
No qualification bar for Senior Executive's Lack of Continuity in planning. There was no fixed pricing strategy. Lack of performance evaluation. Underutilization of Manpower.
AKNOWLEDGEMENT –
THE ECONOMIC TIMESANDTIMES OF INDIA
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