Giving Air India Wings

Trade unions are recognised as key centres of the working class for promoting their broad interests, but the recognition of this role does not mean that they can be insensitive to the  realities of the institutions and the conditions under which they operate.

The strike by two unions of Air India, the Air Corporation Employees’ Union (ACEU) and the All India Aircraft Engineers’ Association (AIAEA), barely three days after the tragedy at Mangalore on the flimsy plea that by advising the union leaders not to speak on the air-crash the government has encroached upon the rights of the unions was in utter violation of the spirit of the social responsibility of trade unions. Their whimsical action cost the airline Rs 12 crore—and public sympathy.
It was ironical that the leaders of the unions instead of adopting a humanitarian and rational approach towards the crash and the pilots of ill-fated aircraft used the occasion to launch a vilification campaign against the foreign pilots hired by Air India. The government of India would not have been forced to hire foreign pilots if Indian pilots had shown sincerity and commitment towards the airlines, from where they were earning their bread. At a time when private airline operators have been making huge profit the combined losses of the National Aviation Company of India (NACIL), formed by merging Air India and Indian Airlines (IA), were estimated at a staggering Rs 5,448 crore in 2008-09. This loss obviously implied that the employees of Air India were not at all concerned about the financial health of the organisation. For them their own personal interest was supreme—when they should have put their heads together to find a way out to improve the operations and revenues of their organisation.
The government should be complemented for taking quick action and sacking 58 trade union leaders and also derecognising the two unions. It is beyond comprehension how the employees could think of a strike when the organisation needed their help. They probably were thinking that as they were dealing with a government airline they could not be harmed. They were not unaware of the fact that IA is in a mess. Some time back the airline had approached the government for a Rs 5,000-crore bailout. With its finances stretched the airline was forced to make uncompetitive choices under political pressure. In fact for the present financial mess the unions are not to be blamed alone. The ministry and its management are equally responsible for the present situation. They both seem to lack credibility with employees and passengers. Political interference, policy inaction and patronage of vested interests have ruined the airline.
Privatisation is not the panacea. But in the case of Air India there is no other option. The government should seriously think of privatising it. Infusion of more capital and professional management can help Air India. If the management of Air India is incompetent the employees too are insensitive. Recently the Prime Minister had mooted the idea of keeping employees on board in any plan to restructure or revive the cash-strapped airline but the unions resorting to illegal strike made it abundantly clear that they are not willing to change their psyche. Air India, with 30,000 employees, has a debt of around Rs 50,000 crore. No amount of financial management will help the government and the airline to come out of this quagmire. It would be in the interest of the country and air travelers if the government took decisive and drastic steps to put its airliners on a competitive trajectory.