Indian Airlines and Air India should work as two Separate wings of NACIL
15-Mar-2010 |
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Shri V. Kishore Chandra S. Deo, M.P. and Chairman of the Committee on Public Undertakings, presenting the 4th Report of the Committee on Public Undertakings on the National Aviation Company India Ltd. †Merged Entity of Erstwhile Air India and Indian Airlines, observed that the root cause of the ills plaguing NACIL is the ‘merger’ of Indian Airlines and Air India.
Shri Deo observed that the so-called merger is a kind of marriage between two incompatible individuals having wide variances with hardly any meeting ground. The committee has recommended that in order to improve the health of NACIL, it is imperative that NACIL be made into a holding Company under which two separate wings NACIL_ Indian Airlines with its Headquarters at Delhi and NACIL-Air India with its Headquarters at Mumbai, each headed by Managing Director who shall report to NACIL. All the losses attributable to merger of IA and AI should be recouped by the Government as the decision of merger was a policy decision spearheaded by the Ministry-in-charge. The committee further observed that there is urgent need for route rationalisation and route allocation since prime commercial routes were being allocated to private airlines. For this purpose Ministry of Civil Aviation should conduct a transparent review of the entire route and slot allocations to ensure that NACIL is neither put at any disadvantage nor appear to be placed in any disadvantageous position. The Committee observed that utilisation of aircraft in the company is at a low of 9 hours per day while the benchmark is at 16 hours per day. Hence, NACIL should take necessary steps to increase the utilisation of aircrafts. The Committee further recommended that Capital infusion into the ailing public airline to make the company credit worthy for its operational credit requirements has become imperative to salvage the remnants of the legendary airlines. The Committee also emphasised the need for ground handling by NACIL, Corporate work culture, and training. Recognizing the fact that the employees of any organization and their welfare are key to the success of any organisation, the Committee recommended fair treatment to loyal employees. On issues relating to service matters, the committee recommended that no unilateral decision should be forced upon and the genuine aspirations of the officers in each cadre should be addressed judiciously. The assurance made to the employees before the merger of the two organizations that “No employee would be placed at a disadvantage at any stage”, must be fulfilled, the Committee recommended. (c) Centre for Asia Pacific Aviation. Date posted: 15-Mar-10 |
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Indian Airlines and Air India should work as two Separate wings of NACIL 
