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Government Policy

How Can Air India Be Revived
By Sanjeev Nayyar , 20th July 2009 [ esamskriti@suryaconsulting.net]

Chapter :

Find below some suggestions that might assist NACIL come out of the ICU.  
•    The Government must come clean on the true financial condition of NACIL. The attitude should be - Yes we have       a problem and will overcome!
•    A national airline is the pride of every country. It should be no different for India.
•    The Board should be headed by someone of Mr. Narayan Murthy’s stature.
•    The Board of Directors be recast such that one third are Independent Directors. They should have functional            skills in Management, Marketing, Human Resources, Finance and Legal.
•    The Minister of Civil Aviation and a PMO representative should be Board members too.  
•    The Managing Director reports to the Board and should have atleast a three year term.
•    The Ministry of Civil Aviation should, for now, have joint responsibility for NACIL’s performance along with the       Board.
•    NACIL must be adequately capitalized.
•    Organization Restructuring and VRS should first start at senior levels. When other employees see Management      leading from the front they could agree to a similar proposal for themselves.
•    A Core team of AI/IA executives with Board members to prepare an implementable roadmap for effective            merger within a fixed time frame.
•    An immediate review of the maturity of existing aircraft loans must be undertaken and lenders be requested to      extend loan tenures to avoid further mismatch of cash flows.
•    Aircraft on ground 21 (as on 1.5.09) to be got in working condition to enable quick return of leased aircraft.
•    There should be a total freeze on providing further rights to foreign carriers. NACIL needs to be supported to       enable speedy recovery.  
•    Up gradation of IT environment such that it is comparable with other airlines.
•    A member of the Central Vigilance Commission should be part of the team which negotiates key contracts to avoid      delays in investigations after contract is awarded.
•    An independent evaluation of the merits and demerits of outsourced services and contracts (e.g. engineering      facilities, manpower for operational areas, ground services) be undertaken by a joint team having management     and union representatives. It should be convened by a Board member.
•    Performance of employees who affect savings of more than Rs 30 lakhs per annum should be recognized with Air       India medals.
•    Appointment of retired employees should be cleared by the Board.
•    Except the CMD every employee can have only one office only.
•    Necessity of existing foreign postings to reviewed.

The devil is in the detail and implementation of ideas. India wishes NACIL a speedy recovery.

The author is Managing Consultant Surya Consulting.

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[1] Comment(s) Posted
  1. Comment By - chintamani shripad datar Date - 23 Jul 2009 Time - 4:34AM
  2. Any or all of our problem the solution is we do not have ambitious and adventurous personalities to face the problem with patriotic approach as for example we have ins virat fromerly known as gorshkov but still we do not have a dry dock to anchor the ship as she does not have approval to have so and many things like that same thing with Air India the approach to problem just like a peon or a clerk let us face it lateron this worsen the case and ruin the nation every body knows but no body acts on it nothing other than that


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