Air India plans a turnaround strategy without wage and job cuts
After all the turbulence national air carrier Air India went through in the recent past, Arvind Jadhav, Chairman and Managing Director of the beleaguered airlines is now determined to have a positive balance sheet by 2014-15 and is ready with a turnaround strategy. Some of the key targets the national carrier has set for itself include achieving 25 million domestic and 15 million international passengers by 2015, 93% on-time punctuality, and 75% load factor. The turn around strategy involves the activation of a low cost air service especially in the domestic market as well as the consolidation of the existing domestic operations before any expansion both in the domestic as well as the international markets is done. Air India has already achieved one major feat in the entire blueprint of the strategy, that is, they have got all the unions on board. It may be noted that Air India had halted operations in the past under the pressuring demands of the union. While the strategy clearly outlines wage and manpower rationalization, what comes as a relief to Air India’s employees is that there will not be any wage cut nor any job will be axed. This comes as a surprise move from a carrier which has the highest ratio of manpower to aircrafts in the entire industry. It seems the virtue of the fact that Air India is a Government carrier and not a private player has come to the rescue of its employees.
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