Originally Posted by
kiwiandrew
my advice to Skyteam.... run!
http://news.outlookindia.com/item.aspx?732675
Cash strapped Air India is mulling several options including closing operations on routes where the losses were high in a bid to reduce mounting expenditure.
Civil Aviation Minister Vayalar Ravi today said the loss-making routes of the state-owned carrier however have not been identified yet but the process is underway.
"Our focus is on reducing expenditure. We are discussing several options, including closing operations on loss-making routes," Ravi told reporters on the sidelines of a function here.
Ravi also said the airline is not contemplating job cuts to cut losses.
A Group of Ministers(GoM) headed by Finance Minister Pranab Mukherjee has asked the airline to improve its cash flow and reduce losses.
"We will not touch staff. There is no question of cutting jobs. We are working on several other measures to reduce expenditure," he said.
The GoM is expected to meet again next month to take some decisions to improve the financial condition of the ailing airline.
Rohit Nandan, Joint Secretary in the Civil Aviation Ministry, was recently appointed as the new Chairman and Managing Director of the airline replacing Arvind Jadhav, who has been repatriated to his parrent Karnataka cadre.
Seriously, they have been losing massive sums for 4 years but they don't even know which routes they are losing money on? They have been ordered to reduce expenditure, but they are not allowed to cut staff even though they are going to cut routes ( once they actually work out which routes are loss-makers) ?
OK, if they can't cut their wage bill what "other measures" to reduce expenditure will they take? Are they going to cut out catering? Maintenance? or are they going to see whether they can continue to not pay their fuel bills, or avoid "cutting" staff, but continue to pay them several months late and only part of what they are owed?
It looks as though *A had a lucky escape, will Skyteam be smart enough to do the same?
The sorry state of Indian state-run affairs. Complete misfits and mismatched people running the show. Please privatise it or shut it. Wishful thinking huh?