Monday, November 19, 2007

The sky is falling!! Privatisation woes.

Our national carrier is suffering from the blues. There is competition at all levels: the premium segment of the market has been captured by Mallya's Kingfisher Air and the discount ticket business is dominated by Air Deccan. Amidst this looming crisis, Air India, already losing money each day indulges VIPs and other fluff. This is part of the reason why they are bleeding so much money. I include here, two Statesman reports:

http://www.thestatesman.net/page.news.php?clid=1&theme=&usrsess=1&id=176956

and

http://www.thestatesman.net/page.news.php?clid=1&theme=&usrsess=1&id=176957

I have the following suggestions:
1. Make VIPs pay. Stop giving perks to MPs, MLAs, their cousins, mistresses and Board Members of the airline.
2. Start a rationalised fare structure with complete internet booking facilities. Cut out the middlemen.
3. Reduce turnaround time at airports. This reduces terminal fees. If people cannot turn up in time to catch their flights, screw them.
4. If you want to run a premium segment, then do so. But brand that differently, make sure that if people are paying four times what the discount fares cost, they should get their money's worth.
5. Stop treating company Directors like gods. They can pay for their own rented cars: stop proving limo services.

Lastly, this is the most radical solution: allow all longterm employees to buy into Air India stock via pension funds/provident funds. If one is literally invested in where one works, one will work a little better. And steal less.

And if Air India cannot make a difference in, say a year... let Laloo Prasad Yadav take over. He did it for the Railways, he can do it for Air India as well.

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