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air india casestudy


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HR case

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air india casestudy

  1. 1. A Case on Air India’s Pilot Strike of May 2012 longest pilot stir in 40 years.
  2. 2. History • Air India is the flag carrier airline of India. It is part of the government owned Air India Limited (AIL). • Tata Sons, a division of Tata Sons Ltd. (now Tata Group) was founded by J. R. D. Tata in 1932. • In 1938 it was re-christened as Tata Air Services and later same year was renamed as Tata Airlines. • Following the end of World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India. • In 1948, after the independence of India, 49% of the airline was acquired by the Government of India
  3. 3. • Air India Building: The Air India Building is a 23-storey commercial tower on Marine Drive in Nariman Point, Mumbai, India. The building serves as the corporate headquarters for the airline, Air India. • Air India One: Air India One is the call sign of any Air India aircraft carrying the Prime Minister of India, President of India or the Vice President of India. The aircraft are operated as VIP flights by the Indian Air Force (IAF). • Air India Cargo: Air India carries all types of cargo including dangerous goods (hazardous materials) and live animals, provided such shipments. • Air India Regional: It operate for domestic destinations as a subsidiary of Air India. • Air India Express: It operates services mainly to the Middle East and Southeast Asia.
  4. 4. Case Points • In 2007, the Government of India announced that Air India would be merged with Indian Airlines. • As part of the merger process, a new company called the National Aviation Company of India Limited (NACIL) was established. • Around 2006-2007, the airlines began showing signs of financial distress. The combined losses for Air India and Indian Airlines in 2006-07 were 770 crores (7.7 billion). • On 27 February 2011, Air India and Indian Airlines merged along with their subsidiaries to form Air India Limited.
  5. 5. Employee Strike • Demand: • Better salary, promotion and increment. • Equality between Air India and India Airline Staff. • Reappoint the pilots, who force to resign. • career progression • integration across various cadres • rationalization of pay scale
  6. 6. THE CHRONOLOGY OF THE AIR INDIA STRIKE MAY 2012 • On May 8, 2012 about 100 pilots went on medical leave as a mark of protest. • Later, the same day it sacked ten agitating pilots and de-recognized their union after 160 pilots failed to join duty by the given deadline. • After putting forth an original list of 14 demands, the aviators are now asking for reinstatement of their 101 sacked colleagues • On the 15th of May, the Union Civil Aviation Minister Ajit Singh stated that the Government was giving Air India one last chance and that it must perform in order to qualify for a bailout. • on 4 July 2012 AI management gave an assurance to Delhi High Court that it would look into the hardships of the pilots sympathetically, the striking pilots have decided to end the 58 day old strike immediately. • Due to pilots' strike Air India suffered a loss of 500 crores (US$90.5 million)
  7. 7. MANAGEMENT’S VIEW • Efforts are being made to resolve the situation. • appeal to the pilots that they should think about the passengers. • As per Rule 42 (2) of the Aircraft Rules, 1937: Pilots who have claimed sickness for two months have been asked to submit medical reports. But verification of the two-month long sickness and related tests and reports may catch pilots on the wrong foot
  8. 8. • An interview with the former executive director of Air India: Jitender Bhargava Why so many pilot strikes taken place in Air India lately? Successive managements have also been insensitive to issues raised by the unions. This is because of a weak HR setup, lack of structured policies and their inconsistent application. The management has taken decisions under duress, appeasing one section of employees at the expense of others.
  9. 9. How it End? • The 58-day protracted strike by Air India pilots was called off on 4th July after the Delhi high court asked them to join duty within 48 hours and the management to sympathetically consider their grievances. • "The AI management shall sympathetically consider the grievances of the pilots including the aspect of reinstatement of those pilots whose services were terminated as a consequence to their strike," Justice Khetrapal said while disposing of the pilots' plea for a direction to the AI management to take back the 101 sacked pilots, including 10 IPG office bearers.
  10. 10. • Employee opinion: “The merger created problems that cannot be solved. Our grades, work, promotions and allowances are different. When you see your colleague from the other cadre doing the same work, but getting easy promotions, allowances, there is bound to be resentment,”