Premium
This is an archive article published on January 13, 1999

IA, A-I synergy plan flies into rough skies

JANUARY 12: Employees' unions in Indian Airlines (IA) are gearing up to resist the decision of the Minister of Civil Aviation, Ananth Kum...

JANUARY 12: Employees’ unions in Indian Airlines (IA) are gearing up to resist the decision of the Minister of Civil Aviation, Ananth Kumar, to achieve a time-bound synergy in key operational areas between the domestic carrier and the Air-India.

short article insert According to sources, IA trade union leaders, who met the new Managing Director, Anil Baijal, in New Delhi on Thursday called the move ill-conceived and just another short term measure which would lead both airlines to nowhere.

“Both Indian Airlines and Air-India have been assigned separate roles. They have a completely different work culture, marketing strategies, management policies and even wage structure. A merger of any sort in any area of operation would trigger off a series of problems,” Air Corporation Employees’ Union (ACEU) general secretary, C D Soman, told Express Newsline.

Story continues below this ad

The government was talking about a synergy in operations between IA and A-I without even carrying out a proper study to identify surplus equipment and manpower tosupplement each other, he added.

Soman explained that in almost all areas of operations beginning with the ground handling, to pilots and engineers, there was a vast disparity in the pay scales of both the airlines. “Why should we allow any of our personnel to work for A-I, when his counterpart in A-I is drawing more salary for the same work?” Soman asked.

The union leader was also sceptical about route and fare rationalisation stating that while IA fares had to be regulated owing to its social obligation, A-I was competing directly with foreign airlines and was not obliged to serve on non-profitable sectors.

“The move only goes to show that the government is confused over adopting a long term civil aviation policy. Just like the Vayudoot fiasco, the subsequent formation of IA’s subsidiary Alliance Air, and the senseless expenditure incurred on changing the corporate image of Air-India some years ago by replacing the Centaur with the Sun, this so called synergy is merely a window-dressing,” Somansaid.

Story continues below this ad

The IA Aircraft Maintenance Engineers (AMEs) too are sore over the Centre’s move. “At present, IA handles A-I flights at Ahmedabad, Calicut, Goa and Hyderabad, and all the manpower including the AMEs they have to do the jobs for which their counterparts in the latter receive substantially more salaries,” an engineer said.

“We do not mind certifying an aircraft, but definitely not for a lesser pay than what AMEs in Air-India get. We are doing it at present as per a mutual agreement between the managements, but there should not be any binding rule which would make us work for A-I,” an engineer told this reporter.

The decision aimed at maximising efficiency by optimum cross-utilisation of resources by February, was based on the recommendations of the nine sub-committees set up on December 23 to look into the entire gamut of areas where synergy could be achieved between the two airlines.

These included route and fare rationalisation, operations, ground handling of passengers and cargo, marketingand advertisement, information technology, ground support, appointment of common General Sales Agents (GSAS) and office space both within the country and abroad.

Story continues below this ad

The minister has already directed the top brass of both airlines to work closely and expedite the process of achieving synergy by giving it topmost priority.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement