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Will Air India be back to its old glory ?

Created by : Raghunath C B, Logistics Executive, AYOKI FABRICON PVT LTD  | 03 09 2010 07:58:39 +0000
Industry : Transportation/AviationFunctional Area : Change Management(People Management)
Keywords : strategic investor nacil
Activity:  124 views;  last activity : 07 06 2010 20:18:09 +0000

 

National Aviation Company of  India Ltd ( NACIL)   future seems to be in uncertianity with an accumulated losses  of 7000 crores , working capital loan of 16000 crores and  orders for 111 planes worth 55000 Crores .Sources say that NACIL requires 5000 crores annual infusion to keep paying the oil and airport charges and wages. 

Government has infused equity of 800 crores and kept an additional infusion of 1200 crores for the next Fiscal Year . But this infusion may sustain the company for just few months .  Government estimates NACIL to reach Operational BreakEven only after 5 -7 years . thus the infusion  of tax payers money may not be an  feasible approach to make the Dead Cat Bounce back again . Hence  the government has opted for Strategic investors  Will this move by Government bring an Ace in the Hole ?

  
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Strategic Investors comes to  NACIL's Huge Advantage with their expertise & experience , but we would have to wait & see  whether it would help NACIL to achieve its Operational breakevens within 5-7 years . Will the management's defects popup, relating to  Labour Union issues, wages, competiton handling etc .
By Raghunath C B, Logistics Executive, AYOKI FABRICON PVT LTD  | 03 09 2010 07:58:39 +0000
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the present scenerio shows the worst performance of management who was unable to pay the salary to the staff working for them.since long air india showing loss,poor quality of services worsened the situation.feeding huge finance will not be fruitful if does not changes according to new commercial approaches.
By nandlal parmar, Freelancer, Freelancer  | 04 07 2010 18:19:58 +0000
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Certain heavily protected PSU's were shown performing well until new govt initiatives weren't introduced. Both Air India & Indian Airlines continued with their monopoly until the "open skies policy" began working in the 1990's. Look at their figures after 1993, & you will find  that the competition both at the international & domestic fronts have beaten them. 

Sorry, they both cannot come back ... 
By NAVEEN RAJ, CEO, JOB GUROO CAREERS  | 03 19 2010 15:03:22 +0000
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