Joining Tata stable has been no panacea for Air India's ills

July 02
Harsh Singh
@harsh1411
@airindia is a disaster, reached levels of extreme mismanagement. 7.10 am flight to Dubai was delayed to 10.45 am, then to 2 pm, then to 3 pm, then to 4 pm and now 4.45 pm. Making us run across Delhi Airport. Now keeping all passengers prisoners at the gate. @JM_Scindia @Gen_VKSingh

July 09
Satyam Sinha
@satyams_1609
#Airindia @JM_Scindia @narendramodi @MumbaiAirport Flight getting cancelled 30 min before departure. Not taking any action and also not providing any options. We must reach abu dhabi early in the morning and report to our offices. They are just joking, making fun of us and our  jobs.

July 11
David
@sarajor18740608
It’s been a frustrating experience since morning to pack five bags, drive more than 90 mins with an infant to the airport, and wait there for 5-6 hrs just to be told the flight is cancelled. Drive back and wait for hours on the phone to re-schedule without success @airindia @DGCAIndia @MoCA_GoI.

When Tata Sons acquired Air India in January 2022, there was widespread optimism that the airline would experience a new dawn marked by significant efficiency improvements. However, almost a year and a half later, it appears that the airline is in a more precarious position than before, suggesting a failure on the part of the new owners to transform the beleaguered airline.

The catalogue of passenger complaints continues to grow, ranging from poor service to downright appalling treatment. A recent survey reveals that Air India’s complaint rate per 10,000 passengers significantly surpasses that of other Indian airlines. In a social media post, one passenger expressed his disillusionment with Tata Sons, initially believing the company would swiftly resolve the airline’s issues upon acquisition. Unfortunately, according to the tweet, neither his assumptions nor expectations were met, painting a grim picture of the airline’s prospects under its new management.

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From the outset, the management change has been fraught with difficulties. The announcement of Ilker Ayci, former Turkish Airlines chairman, as the airline’s first CEO post-acquisition quickly met with a setback when he declined the offer following opposition from the Rashtriya Swayamsevak Sangh’s economic wing, Swadeshi Jagran Manch, due to security concerns.

However, the most damaging incident so far was the infamous “pee gate” incident, which exposed glaring flaws in Air India’s customer service and crisis management capabilities. The incident in question took place in Delhi on January 11 this year, involving an inebriated 34-year-old man accused of urinating on a 72-year-old female passenger. He claimed to have no memory of the incident until the flight crew woke him up, asking him to apologise. Despite his apology, his bail request was denied.

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The situation escalated further when the victim’s letter reached Natarajan Chandrasekaran, the chairman of Tata Sons. The letter detailed her harrowing experience and pointed out the ineptitude of the crew in handling the situation. This event brought severe public criticism and official repercussions, including the suspension of crew members and the firing of the alleged offender from his job at Wells Fargo.

Poor response

While there are different versions of the incident, the airline management was found wanting when it became public. Writing for the Economic Times, Capt GR Gopinath, the former CEO of Air Deccan, pointed out, “…but what is most perturbing with the current episode is the lax manner in which the Tata management of ‘new’ Air India handled the matter, and continues to deal with it. No one can predict how people behave, especially after consuming intoxicating substances. But when such a fracas is noticed or reported, handling it swiftly and prudently is paramount. The Tatas and Air India management are not coming across as sensitive, transparent or even honest in the latest matter.”

What was disturbing was that when the incident happened, the airline crew hushed it up instead of filing a complaint and handing over the passenger to the cops. Neither the CEO Campbell Wilson nor Tata Sons’ top management expressed shock. Nor did they try to set up a probe panel immediately to find out the reasons for such an incident and the necessary corrections to be made so that such incidents don’t occur. 

It took the 72-year-old victim to file a petition in the Supreme Court seeking direction from the Directorate General of Civil Aviation and the airlines for framing an SOP (standard operating procedure) to deal with such incidents.

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According to Capt Sam Thomas, president of the Airline Pilots’ Association of India, cultural clashes between old and new staff contribute to the prevailing confusion within the airline. He noted, “While the actual handover has happened from one management to another, there are no visible signs to this effect inside the airline.”

Deeper rot

Yet, the airline appears to suffer from deeper, more fundamental issues, including a lack of departmental coordination. A former director with Air India cites an example of how routinely specific broken seats in an aircraft would be replaced with better ones from another aircraft as soon as the problem was flagged during the pre-Air India sale.

In an attempt to bring a fresh perspective into the airline, Air India is learnt to have marginalised employees who have been with the airline when it was part of the government. “Passing over the baton should have been carried out methodically, which hasn’t happened. Almost every passenger who has travelled post-takeover has had a problem with either baggage handling or the in-flight service. None of them has been addressed, which has hurt the airline’s image badly,” the former director said. “What is surprising is that Air India, as a PSU, despite all its challenges, worked better.”

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Although the new owners’ decision to distance themselves from the government-era model might be viewed as an attempt to create a fresh start, it has resulted in overlooking a wealth of wisdom and experience that could have helped smoothen the transition. The knowledge of former senior-level managers and directors could have significantly helped to guide the new regime, offering insightful lessons on how to shift from a public-sector model to a private one.

Abrupt shift

The issue of transitioning personnel and preserving institutional knowledge is particularly crucial. An abrupt shift, without proper integration, can lead to an identity crisis within the organisation. Such a crisis is far more than a simple branding issue; it can disrupt operational procedures, affect the workforce morale, and lead to inconsistent service delivery.

The forthcoming merger of Tata Sons’ various airlines will intensify these challenges. Instead of focusing on addressing Air India’s issues, the new management is fast-forwarding towards a merger. Merging different airlines with their own distinct cultures and operational methods can create further complexity, only adding to the existing troubles.

Addressing immediate concerns, such as passenger complaints, should be a priority for the management. The increasing rate of passenger complaints signals a need for direction at the executive level. This issue, coupled with severe problems such as the lack of coordination between departments, contributes to a disjointed company culture, ultimately leading to inefficient service delivery. 

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Furthermore, the fleet and staff expansion plans need to be in sync. The acquisition of new aircraft should ideally be accompanied by a simultaneous increase in staff, particularly pilots, to handle the additional workload. A shortage of pilots can lead to overworking existing staff, resulting in fatigue and possibly compromising safety.

Air India has historically been a prominent player in the Indian aviation sector. Its decline under the new ownership is alarming, especially considering the airline’s significant role in the country’s aviation industry. The repercussions of its downward trajectory could extend beyond the airline itself, potentially impacting the entire sector.

Tata Sons intervention

The current situation warrants immediate intervention from Tata Sons. The conglomerate needs to reassess its strategy and adopt a more pragmatic approach considering the unique challenges and dynamics of running an airline. While it’s essential to maintain an element of optimism for the future of Air India under the new ownership, it’s equally critical to recognise and address the problems at hand.

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Suppose these problems continue to be ignored or inadequately addressed. In that case, the new ownership may not rejuvenate the ailing airline, which would be disappointing for everyone involved, from the employees to the passengers. It would also signify a missed opportunity for Tata Sons to demonstrate their potential to revitalise a crucial component of India’s aviation sector.

While Tata Sons’ acquisition of Air India has generated much anticipation, it has also led to increased scrutiny. How they handle the present challenges will set a precedent for future endeavours. This situation should remind Tata Sons and other corporations that acquiring a struggling company is just the beginning of the journey. The real test lies in successful integration and transformation, which is currently missing in the case of Air India.