Govt should not succumb to Air India's pampered pilots: ASSOCHAM

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its report released yesterday has said that the Indian government should show a resolve to turnaround debt-ridden Air India and should not succumb to black-mail tactics of its "pampered pilots" in future. Expressing a sense of relief at the end of 58-day long pilots' strike, ASSOCHAM said that restructuring of Air India must be done based on the recommendations of the Dharmadhikari Committee report, whether pilots like it or not.

The government should show a resolve to turnaround the bleeding national carrier which used to hold a place of pride in the past, it said. "At this juncture when the national economy is grappling with slowdown and the aviation industry is feeling massive heat, can we afford the taxpayers' money go down the drain just because a few pilots resort to black-mailing tactics?" it added.

However, it said that despite a crippling strike, Air India carried three per cent more passengers between June 1 and June 20, 2012 on an annualised basis.

The strike has dealt a crushing blow to an airline which has a debt of Rs 43,000 crore and accumulated losses of Rs 20,000 crore, it said, adding the strike has resulted into a loss of over Rs 600 crore to the carrier and to the exchequer which recently committed Rs 30,000 crore bailout package.

If Kingfisher can be asked to fend for itself, what is so unique and sacrosanct about Air India, ASSOCHAM asked. If the Civil Aviation Minister shows resolve and no non-sense approach in nursing Air India to health, he would enjoy the support of not only India Inc but also the entire spectrum of public sentiment, added the report.

Urging the government for a turnaround plan, it said, "The moot point is how long can Air India be financed from the national budget, which itself is under constraint from several counts like diesel, food and fertiliser subsidy. It must stop. Those non-performing assets, be it pilots or ground staff have to be dealt firmly and in a totally legal way."

The strike has not only hurt the ailing airlines, but also vitiated the entire business sentiment in the aviation sector. "The morale of this industry is at an all time low. Employees do not know about their future, the promoters look fatigued under heavy debts while banks think the sector is too risky for extension of any further financial help," it added.

Besides, it said the government should allow foreign airlines to buy stake in the domestic carriers. "While it is going to be difficult call even for foreign investors to pump in money in a dicey sector, the only hope is the potential for the sector in India, which would continue to grow," the ASSOCHAM report said.

Source: http://www.travelbizmonitor.com/govt-should-not-succumb-to-air-indias-pampered-pilots-assocham-16963

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