Ashwini Phadnis
Air India tried to get into the world's biggest interlining group, Star Alliance. ‘You aren't good enough', it was told.
Air India tried to get into the world's biggest interlining group, Star Alliance. ‘You aren't good enough', it was told.
August has been an unfortunate month for Air India. Early in the month, it lost out on an opportunity of being the first Indian carrier to join a global airline alliance. Mid-month saw a change of guard at the top. Heaven knows what will happen by the end.
On August 12, the Government appointed Mr Rohit Nandan, a Joint Secretary in the Ministry of Civil Aviation as the new Chairman and Managing Director of Air India (AI), thereby bringing down the curtain on the tumultuous innings of Mr Arvind Jadhav.
It is also believed that the airline will get new independent directors on its Board. The persons to be inducted are likely to be from the finance and hospitality sectors.
JADHAV'S NOSEDIVE
During Mr Jadhav's over two-year-long stint as CMD, the airline's domestic market share plunged to the fifth position from the third. Its employees expressed their disgruntlement on more than one occasion by going on strike. This not only inconvenienced flyers but also led to a severe dent in the Maharaja's image.
Worse, the airline's total accumulated losses on March 31, 2010 stood at Rs 13,326.86 crore with the loss before tax during 2010-11 expected to be Rs 6,994 crore (provisional).
The financial health of the airline is precarious with current monthly revenue collections being around Rs 1,100 crore, while the expenditure is about Rs 1,700 crore, thereby leaving a gap of Rs 600 crore a month.
NOT NOW, DARLING
Given this dismal performance, an entry into the largest global airline alliance, the Star Alliance, would have been useful. But this was not to be. Others have standards, even if Air India doesn't.