Indian airlines is presently partly owned by the government ofIndiaand partly privatized, having a total

staff strength of around 22,000 employs. Its annual turnover together with that of its subsidiary Alliance
Air, is over

Rs. 4,000 crores (around US$ 1 billion).

Indian airlines flight operations center on its four main hubs are the metro cities i.e.Delhi,
Mumbai,Calcuttaand Chennai. Together with its subsidiary Alliance Air, Indian airlines carries a total of
over 7.5 million passengers annually.

Indian airlines have been setting the standards for civil aviation inIndiaright since its inception. It has
many first to its credit, including the introduction of the wide- bodied A-300 aircraft on the domestic
network,

The fly-by-wire A-320, Domestic Shuttle Services and Walk -In flights. Moving with the times, Indian
airlines is one of the first organizations in the country to establish a widespread computerized network for
reservation and ticketing.

Its unique orange and white logo on the tail of all its aircraft is perhaps the most widely recognized Indian
airlines brand symbol that has over the years become synonymous with services, efficiency and reliability.

BIRTH OF INDIAN AIRLINES

After the Second World War in May 1945 the Government of India announced a new policy for the
development of the air transport services. In the first two years after it came into existence the
government have given licenses to eleven companies for operating air services in different regions.
Taking into consideration the deteriorating financial position of the conglomeration of private airlines, the
Government of India nationalized air transport industry through the Air Corporation Act of 1953 and Indian
airlines was born on 1 august 1953 out of eight private airlines with a fleet of 99 Dakotas and scores of
other planes. Initially Indian airlines had capital of Rs. 3.25 crores with the corporate headquarters at
Delhi. The undertaking of Indian airlines was transferred to & vested in Indian airlines Limited with effect
from 1st March 1994 in pursuance of the Air Corporation Act, 1994.
HISTORY OF INDIAN AIRLINES
In 1953, a new dream took shape to air link the vast South Asian subcontinent by a single, modern and
efficient airline. The airline was Indian airlines. Today, Indian airlines, together with its fully owned
subsidiary Alliance Air, is one of the largest regional airline system in Asia with a fleet of 56 aircrafts, 8
wide bodied airbus A300s, 34 fly by- wire airbus A-320S, 11Boeing 737s and 3 Dornier D-228aircrafts
and 4 ATR-42.

Indian airlines Airlines has been setting the standards for civil aviation inIndiasince its inception in 1953. It
has many firsts to its credit, including introduction of the wide-bodied A300 aircraft on the domestic
network, the fly-by-wire A320, Domestic Shuttle Service and Walk-in Flights. Its unique orange and white
logo emblazoned on the tails of all its aircraft is perhaps the most widely recognized Indian airlines brand
symbol that has over the years become synonymous with service, efficiency and reliability.

PROFILE OF INDIAN AIRLINES

Indian airlines was constituted as a statutory corporation under Air Corporation Act 1953 to nationalized
the air transport industry. The Airline, that merged and integrated to form Indian airlines were:

1.

Airways India Limited.

2.

AirIndia(operating domestic services only)

3.

Air services of India Limited.

4.

Himalayan Airways Limited.

5.

Bharat Airways Limited.

6.

Indian airlines National Airways.

7.

Deccan Airways Limited.

8.

Kalinga Airways Limited.

Indian airlines has been constantly innovating and upgrading its fleet and today is one of the largest
domestic airlines in the world with a fleet of 55 aircraft including A-320s, A-300s and Boeing 737s.

Indian airlines operates 220 flights everyday carrying more than 22,000 passengers on its network. It
connects 63 domestic and 19 international stations in 15 countries likeSingapore,Kuala
Lumpur,Bangkok,Colombo,Katmandu,Kuwait, and Sharjah, Muscat etc.

The airline has grown from strength to strength by keeping an excellent track record of manpower and
infrastructure development. Its internationally recognized pilot training academy, The Central Training
Development (CTE). AtHyderabad is totally self-sufficient in training pilots, engineers, cabin crew and
other personnel. In addition to this Indian airlines is self-sufficient in aircraft maintenance to keep its
aircraft in top flying condition.

Before 1953, i.e. before these airlines merged to form Indian airlines there was no set of rules or
standards of operating the airlines. The operations mainly were competition oriented and the result of
which was that every airline wanted to be the cheapest one. They presented an excellent example of
unhealthy competition, as almost all the airlines did not have enough money to maintain the aircrafts.
Ultimately the government took over by passing the Air Corporation Act and Indian airlines came into
being. A board of directors conducts the affairs of the corporation.

Indian airlines is one of the public sectors corporations inIndia. A statuary corporation like Indian airlines is
formed with definite objective in the interest of the public based on pre-set principles.

Indian airlines Airlines launches new identity

December 7 marks the beginning of a new epoch in Indian airlines Airlines. The Airbus A319 aircraft
which landed atDelhiAirporttoday launched the new Indian airlines Airlines name and identity. After ruling
the skies for more than 50 years and with many significant improvements in the last decade, Indian
airlines Airlines is gearing itself for tougher challenges. The A319 aircraft taken on lease is the first new
type of aircraft to join the fleet after a long gap of 11 years. Four more will join shortly. The fleet acquisition

plan for 43 aircraft is also underway and the airline hopes to take delivery of the new aircraft beginning
next year end.

Signifying continuity with change, the new look of the airline communicates a bold, striking, progressive
and distinctive image for the airline. It is a contemporary graphic representation inspired by the wheel of
theSunTempleat Konark, which symbolizes timeless motion, convergence and divergence. It also
embodies the solidity and trust that has stood the test of time.

Maintaining the continuity and strengthening the brand is the familiar orange colour, but along with a dash
of blue that is vibrant and has a natural affiliation with the sky and aviation. The big and bold font
connotes the inherent strengths and the solid base of the airline, of its vast network, technology and
infrastructure.

The rebranding, the arrival of new aircraft on lease, the acquisition of 43 aircraft, the proposed IPO all
signal a resurgent airline with a renewed sense of dynamism and energy.

The OBJECTIVE functions of Indian airlines are as follows:

(a)

It shall be the function of the corporation to provide safe, efficient, adequate, economical and

properly coordinated air transport services whether domestic or international or both.

(b)

The corporation shall so exercise their as to secure that air transport services are developed to

the best advantage and in particular so exercise their power as to secure that the services are provided at
the reasonable charges.

(c)

To strive for excellence in each and every sphere of activity, so that the corporate image can be

refurbished.

(d)

To stimulate domestic tourism and international trade by air.

(e)

The share in the promotion of social, cultural and national integration ofIndia.

(f)

To participate in the development of national aircraft and ancillary industry and to cherish the

national aspirations by keeping up the image of the public sector as a beneficiary of human race.

The opening up of the skies in 1992-93 thrust Indian airlines into a new environment of competition, with
competition came greater expectations of passengers. Indian airlines has faced the competition with
aplomb, catering to enhance passengers need with various products upgrades and marketing initiatives.
And at the same time it has continued to fulfill its social obligations. The airline has augmented its fleet of
aircraft by leasing five B-737& two A-320 aircraft. Plans are also to purchase new aircraft new aircraft and
thereby survive to establish itself as a technology and market driven organization.

TRAINING AND DEVELOPMENT SECTION

HISTORY OF TRAINING IN INDIAN AIRLINES:
Management development activities were initiated in Indian airlines almost 30 years age with the
establishment ofManagementTrainingCenterat the corporate level andRegionalTrainingCenterat Regional
level. Before the establishment of these centers, a detailed training need survey was carried out by an
eminent management expert Prof. Ishwar. He gave several recommendations to initiate the training
process both related to job as well as personal development for officers as well as staff level. Various
training program were structured and organized both for staff as well as officers.

During the year 1974-75 an attempt was made internally to available the effectiveness of training and
reviews the training needs in order to modify the training programs where necessary. Just because of
long time gap there is an urgent need to undertake the assessment of training needs. In view of change in
product, quality, highly competitive aviation scenario and continuously changing expectation of the
customers. Such an exercise is imperative.

These training programs are general in nature and there main objective is to develop the managerial skills
of the participants. Here no systematic matching exercise between the individual needs and the contents
of the course is normally carried out as the primary objective is to nominate maximum number of officers
for different program with a view to achieve the target in terms of number of nominations made.

TRAINING SECTION IN INDIAN AIRLINES

Training section coordinates with various departments and outside faculty for organizing programme.
Indian airlines Limited (IAL) has in the past conducted on organization wide attitudinal change programme
called PARIVARTAN. The program consisted of two days session and over approximately
3000emploi\yees in Northern Region participated in this program.

Training and development program in Indian airlines has been concerned with training from its inception
i.e. since 1957; a beginning was made in commercial department with the establishment of training unit in
each of the four geographical regions. This was further consolidated through establishment in 1965 of a

commercial training college which addressed itself to the task of organizing certain need based training
program for officers and other person in commercial department. The entire commercial training network
is geared around training of commercial staff for aircraft training of commercial staff pertaining to the work
of the department. In 1968 the needs of evolving such a training was appreciated and then management
engaged the services of Prof. Ishwar Dayal to study the training needs in Indian airlines and draw out a
plan for first training. The survey determine the volume of the training activities required in Indian airlines
has consequently recommended that formal training in Indian airlines should be carried out by the
following Central Training Policies of Indian airlines:

1.

Identify the training at different levels in the organization and organize to meet the
needs.

1.

Nominations of training program to be made on the basis of clearly made laid down
criteria (A) individual need related to personal growth.

Training to be continuing in activity.

1.

Training to all categories of employees upward including members of top

management.

1.

New entrants in staff and junior officer level are o be included through special
orientation program.

1.

Growth experience with members of other organizations.

1.

To maximize the spread of benefits of training over wider section.

1.

Communication of plans and policies of Indian airlines to its officers at different

levels.

TRAINING PROGRAM ORGANISED BY INDIAN AIRLINES IN 2004

The primary concern of any organization is its viability and hence its efficiency. So comes need to train
the employees on regular basis, so as to survive the competition.

There are three basic types of inputs in any training program. These are skills, aptitude and knowledge.

The primary purpose of training is to establish a sound relationship between the worker and his job the
optimum man task relation. Faculty arranged for the training program is both internal as well as external.
Indian airlines organized 101 training program in the previous year. The major heads under which training
program occurred are as follows:

q Company information program: This program is organized for 1&2 grade employees of the
company. This is to inform the employees about the welfare amenities and leaves &passage given to
them by the company. This is a half-day program. When this program is conducted for 3 to 6 grade then
besides welfare and leave & passage lessons on standing orders, service rules related to promotion and
transfer and function s of all department are also given. Then its of 3 days.

q Security awareness program: This program is meant for both 1&2 grade and 3to6 grade. It may
range from day to 1 day. This program is for every department. This is meant for enhancing security
awareness among the employees.
q Standing orders and discipline procedure: This program is meant for 3to9 grade and also for
engineers and technicians. This program is of 1-day duration. This is meant to enhance information
regarding service rules, leave and passage, welfare facilities, standing orders.
q Computer awareness program: This program is meant for all the grades except 1and2. This
program is of 4 days. Employees are given training on MS-world, EXCEL, and Internet.
q Training program for trainee sub assistance: At the time of recruitment there is a 2 months
training. It is on security, bureau of civil aviation, company information and on job training. After the
completion of this training there is an exam of BCS and if a person passes the exam then only he is
appointed and if not then he is given two more chances and finally he can join Indian airlines.
q Training program for redeployed staff: when there is a shortage of staff in any department then
staff from some other department can be transferred. Before such a transfer there is a three days training
program to make the employee aware with the new department. Afterwards there may be a 15 days
training program at theHyderabad training center.
q Yoga classes: this training program is for all the grade employees. This is of 16 days duration. This
occurs at every quarter in the year. This is meant for enhancing motivation and spiritual level in the
employees.
q Training program for stores department: This program is especially for stores department. Its
duration may range from 3 to 9 days. In this program employees are trained in storing, store
management, coordination with other department.
q Welcome to the world of managers: When an employee is promoted from staff level to assistant
managerial level then to make the person aware about the job description this program is carried out. Its
duration is of 1 day only.
q Creativity workshop: This is a 1-day training program especially for the employees of In-flight
services, commercial and catering department because these people deal directly with the passengers.

PURPOSE OF TRAINING
Training is not a purposeless and aimless activity. It is a powerful tool for all around development of a
person. Training is necessary for:

Increasing the productivity of work force.

Improving the quality of products being manufactured.

Helping an organization to fulfill its future personnel needs.

Improving health and safety of workers.

Preventing obsolescence of employees at work.

Maintaining personnel growth of employees.

Improving organizational climate.

OBJECTIVES OF TRAINING

To educate and impart knowledge and skill to the newly recruited personnel for
effective performance of assigned tasks.

To expose the employees to the latest techniques, concepts and information about
the work so that they develop skills and efficiently perform their duties.

To provide opportunities for the middle level managers and blue-collar workers for
exchanging the experiences and knowledge during inter departmental training
programmes and seminars.

To impart customer education especially to the employees who deal with the public.

1.

3.

PERFORMANCE APPRAISAL:

Establishment section looks after the procedure of annual performance appraisal. On the basis of APA,
the employee is considered for promotion, transfer etc. in the case of promotion last three years of APAs
is considered and if there is any adverse entry in the APAs then the candidate is debarred from promotion
for one year but the adverse entry is communicated in writing to the employee. The APA indicates the
performance of the employees through out the year. APAs play an important role in promotion of
employees: every APA contains 60 marks, 20 marks for each APA per year.

There are 6 types of performance appraisal they are:

1.

P.A of engineers including AME (Aircraft maintenance engineers), flight engineers

(13/14 grade), (including Sr flight engineers (15 grade) and Sr manager flight
engineering (16 grade) is filled from 1st April to 31st march.

2.

P.A. of technical staff (3-9 grade) this is filled from 1 st July to 30th June.

3.

P.A. of flying pilots (10/12 grade and above (only in flying duties, including
commander, captain and first officer) this is also filled from 1 st to 31st march.

4.

P.A. of airhostess and flight pursers (including Sr airhostess and flight pursers. Deputy
Chief Cabin crew, in flight services (IFS) officer. Assistant (IFS manager) this is filled
from 1st July to 30thJune.

5.

P.A. of non-technical staff (3-9 grade) this is filled form 1 st July to 30 the June.

6.

P.A. of officers and executive pilots (doing flying duties as well as administrative
duties) (16-19 grade) this is filled from 1st April to 31st march.

Annual Performance Appraisal (APA) form of technician and non-technician staff differs into aspects. In
the technician APA, there is attribute like care of tools & equipments and safety consciousness is also
added.

A distinguished feature is seen in engineers APA in which a space is provided for appraise about his/her
own self-assessment which makes them unique over the other APA form.

If promotion is considered for concerned employee then the appropriate authority take into account the
last three-year performance appraisal of the concerned employee.

Performance appraisal in Indian airlines is a 3-tier approach in which the next three higher authority of the
concerned employee judge and gauge the performance of the employee through out the year. It is not a
one-time exercise. Suppose staff performance appraisal is about to conduct then the next three higher
authority will be assistant Manager, deputy manager and manager which in I A L is known as reporting
officer, reviewing officer. If there is a discrepancy in the rating of reporting and reviewing officer then the
final say in the P.A will be that of consenting office.

THREE TIER APPROACH FOR EVALUATION OF PERFORMANCE APPRAISAL

If there is any adverse remark in the P.A. then it must be conveyed to the consult employee and proper
counseling is done in order to make sure where the employee lags and how to rectify the fault. The
concerned employee and the appraiser must sign the valid P.A. form. There is a promotion scheme,
which is known as time bond promotion scheme. If the employee is provided there is no misconduct in the
last three years. A certificate of integrity and fitness is prepared so as to see that there has been no
misconduct in the last three years. A certificate of integrity and fitness is prepared so as to see that there
has been no misconduct on his/her part in the last three years. Basically the promotion above the time
bound promotion is suitability cum vacancy abased promotion, if there exist any vacancy then the only
employee will be considered for promotion based on the suitability for the post.

Establishment section also takes care of monthly statutory return and one tome or annual return. It is
Establishment section, which issues notification for filling up various return forms like property return,
income return. Monthly return of additional and direction in manpower has to be sent to the head quarters
by the establishment section.

Anatomy of a failed merger

Print Edition: June 24, 2012

No public enterprise in recent memory epitomises the adage "the government

should not be in the business of running a business" as much as Air India.
From being a market leader on domestic routes in 2001 - the operation was
called Indian Airlines then, before it merged into Air India - to becoming an also-ran

today, the airline makes for a case study on how not to merge two entities. Many
insist the 2007 merger was doomed long before the latest strike.
Geetanjali Shukla lists the factors that have dragged the airline down and possible
fixes based on conversations with experts:
1. LEADERSHIP
Praful Patel, the aviation minister who led the Air India-Indian Airlines merger in
2007, has been keeping a low profile since a pilot strike stalled the airline's
cashmaking international operations.
Current Aviation Minister Ajit Singh pulls his punches when he talks of coalition
colleague Patel: "In retrospect, it is easy for people to say things. At the time of the
merger it must have seemed the right thing to do."
But others point out Air India has had four chairmen in the last six years with no
one biting the bullet on tough decisions.
"How can you think of achieving success with such instability at the top," asks Kapil
Kaul, CEO-South Asia, Centre for Asia Pacific Aviation.
For full interview, go towww.businesstoday.in/ajitsingh
SOLUTION:
Appoint a professional CEO backed by a strong board of directors and give him a
free hand (Accenture, the consultant at the time of the merger, had recommended a
minimum five year tenure). In effect, the government will have to cede control of
day-to-day running of operations and appoint independent directors (an experiment
attempted earlier).

2. BLOATED HEADCOUNT
The merger brought together two disparate entities and created a behemoth with
30,517 employees - 214 per plane. Singapore Airlines has 161 while British

Airways has 178.

Air India's high employee-aircraft ratio is expected to come down to 110 per aircraft
once 19,000 employees are transferred to two new proposed units - one for ground
handling and the other for maintenance, repair and overhaul (MRO) operations.
But, even here, workers want to be deputed rather than transferred.
SOLUTION:
Carry out the planned spin-off of the ground handling and maintenance, repair and
overhaul operations. Offer a voluntary retirement scheme if still necessary.

3. HR INTEGRATION
If the jumbo-sized staff was not enough of a headache, the way the
managementwent about integrating the workforce made for a perfect storm.
No attempts were made to standardise hiring policies for the rank and file. Air
India has a five-day week; Indian Airlines has a six-day week. Indian Airlines pilots
were promoted unconditionally once in six years while Air India pilots complained
they got their turn after 10 years - if there was a vacancy. The ground handling teams
of the two airlines continue to operate separately...
"Before the merger, due diligence on HR issues was very poor," says CAPA'S
Kaul. Some of the gaps are being addressed but the process has been painfully slow.
Five years after the two airlines merged, staffers below the level of deputy general
manager have still not been integrated.
FULL COVERAGE:Air India crisis
Even before the report by the Dharmadhikari Committee, set up to look into Air
India's HR issues, was released, Air India CMD Rohit Nandan told BT: "It will not be
an easy report to deal with." The panel has suggested uniform working hours and
pay scales, among other things. But that, at best, is a beginning.

SOLUTION:
Air India will have to cut layers of management, align staff by role, bring in lateral
hires, overhaul customerfacing functions, and implement a massive training
exercise. And, rein in pilots and engineers, even if it means a partial lockout.
Minister Singh's answer was a noncommittal "I hope not", when asked about such a
possibility.