Opinion Con Air

In 2008,the first year post merger,AI ran a loss of Rs 2,226 crore and attributed it to tiding over the problems of the merger. In 2009,the second year after the merger,losses went up to Rs 7,189 crore,which was blamed on the global recession. In the third year,they recorded a loss of Rs 5,550 crore and said this was because of high oil prices in the international market. In 2011 and 2012,their balance sheet showed a loss of Rs 6,865 crore and Rs 10,000 crore respectively. Fortunately,no reasons were given.

Currently,AI has a debt of around Rs 46,000 crore,accumulated losses of Rs 22,000 crore,a working capital loan of Rs 20,000 crore and other sundry debts,such as dues to oil companies,airports and catering,amounting to another Rs 10,000 crore. In AI,we have an airline owned and run by the government with implications of financial mismanagement of over Rs 1 lakh crore. Sadly,the government is said to have agreed on a Rs 32,000 crore package for a turnaround — this comes after it has already invested some Rs 2,000 crore.

There are many reasons why AI is in such a pitiable state,but the recent strike by pilots from the pre-merger AI is a perfect example of how the airline had been run earlier and how the employees,from loader to top management,have arm-twisted an organisation said to be our national pride. The government has needlessly poured in money from the public exchequer to suit the whims and fancies,not of passengers or the people of this country,but of AI employees,the babus and even politicians like us.

Now let us examine what the agitating pilots have asked for. First,they have said that they would not,in any situation,accept pilots of the erstwhile IA being sent for training on Boeing 787 Dreamliners,or for that matter,any other aircraft flown by the striking pilots — the 777s or the 747s. Where in the world do employees decide their own terms of employment and those of their colleagues too? Over the years these young captains,and their predecessors,have served AI while enjoying the privilege of flying the most beautiful aircraft. This was a privilege not many other young trained pilots had. Having gained experience,undergone training and then having qualified at a huge cost to the company,they decide to set their own terms of employment. The government,after investing huge resources,is threatened not only by arm-twisting but even with a possible cracking of bones. These pilots have the privilege to abandon aircraft,romp off and leave the craft stranded anywhere in the world,because they can go on strike at their own sweet will. They stand protected as “workmen” under our labour laws,which put our captains at par with carpenters,electricians and others.

The second demand the pilots have made is that if they have to operate anywhere in the world as staff on duty,they should be given a confirmed first-class seat,provided the seat has not been fully paid for by a passenger already. The cost of the first-class seat to New York or Toronto would almost equal the salary of the captain. If the first-class seat has been paid for by a passenger,the captain will decide whether he wants to travel business class or not. But in no situation will he agree to fly economy. Obviously,they are the great Maharajas of yesteryear.

Third,the pre-merger AI pilots have said that they will only fly to the West and those destinations should be theirs exclusively. Former IA pilots could fly to Eastern destinations; under no circumstances should they look West.

Fourth,at some point of time earlier,the management had agreed,under duress,that if a captain did not become commander in 10 years,due to his own professional abilities or because the management had failed to put him on command training,he should be given the perks and remuneration of a commander. This proviso,signed between the management and the Indian Pilots Guild,was inherently atrocious. The pilots now propose to reduce it from 10 to 6 years,which means that a captain who fails to achieve the competence of a commander in six years should still be treated as one.

These are only a few examples. The full story of the situation that has prevailed for years would make the nation aghast. It is unfortunate that pilots are being sacked,but if the citizens of India find themselves stranded across the world,I think the decision of the management is desirable. It is time the government takes a final call and sets everything in order,something it has failed to do since the merger in 2007. It is also the right time to discard the agreements made with the ICPA and IPG unions,many of which were frivolous and have been detrimental to the interests of AI — dump them in the nearest garbage bin and look forward to a mechanism through which AI can be restored to its position as a national carrier,even outside government control. This is also a good moment to recall how British Airways,under Margaret Thatcher,was revived dramatically by Lord John King. He turned around a company which was as chronically ill as Air India is today.

The writer,a former civil aviation minister,is Rajya Sabha MP and national spokesperson,BJP. He flies for IndiGo on honorary basis
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