The current agitation by a section of Air India's pilots has once again brought to the fore the Government's failure to take strong action against the Maharaja's employees. The most recent “industrial action” by the pilots has led to a 25-30 per cent decline in Air India's daily revenues.
Bailout package
As this is the start of the peak travel season, the agitation, which has led to the cancellation of over 20 flights and the suspension of at least 10 pilots, has also meant the airline's image getting a severe battering yet again.
What is damaging for the airline is that this “industrial action” comes at a time when the Government is providing the cash-strapped airline more than Rs 30,000 crore as part of a financial restructuring programme.
Further, the Justice Dharamadhikari Committee, which was set up to smoothen the process of integrating Indian and Air India employees when the two were merged, has has expressed its commitment to implementing it.
Agitation by the pilots could mean the bailout package is in trouble as the Government releasing more equity to the airline hinges on the latter meeting a number of milestones. These include increasing the number of hours an aircraft is flown, increasing revenues from cargo and passengers, and improving customer satisfaction. Bankers are now expressing concern about the airline being able to meet these milestones.
Rumours are rife that some political leaders are backing the striking pilots. This has also been the case in the past, when pilots have placed their petty needs before the future of the airline.
For instance, as far back as two decades, Mr L.Vasudev resigned as the Managing Director of Indian Airlines after the Government yielded to the demands of striking pilots. The airline suspended a number of them for not reporting for duty only to reinstate them when Mr Vasudev resigned.
On another occasion, the airline management derecognised the Air India pilots union only to recognise it after the pilots called off their agitation.
Way forward
Then, during UPA's first tenure, the Government was ready to declare a lockout in Air India after a section of the pilots went on strike.
A senior government official was on his way to Delhi to sign the order for the lockout, but the decision was reversed even before he landed in the Capital. And, a golden chance of setting the affairs of Air India in order was lost.
Perhaps the Government should use the recent agitation to show it is serious about the well-being of Air India. Suspending pilots and then reinstating them again after a compromise is struck is no solution. Neither is succumbing to political interests, which are allegedly backing the agitating pilots.
Instead, sacking the striking pilots would send out a first clear message that it is serious. Taking a more long-term view on curtailing international operations and running limited routes efficiently could be another step. But is the Government ready to take such harsh measures?