Chocks-on..The Weeekend Platter  ( 05 OCT.,2013 )  ISSUE – XIV 

Jitender Bhargava at his candid best….on his soon to be launched book…’ The Descent of Air India’

Former Air India executive director Jitender Bhargava’s new book The Descent of Air India hits the stands this week. Bhargava, 61, who worked on the book for two years after his retirement, narrates the story of the airline’s decline over the years….!!! Some  excerpts:

Why did you think a book on Air India was warranted?

When you look at the transition of Air India from the iconic status it once commanded to its current state, I felt it was a story worthy of narration. There were numerous questions that arose: Why did the airline fail to maintain its premier airline status, when did things go wrong, why did they go wrong, why were corrective actions not taken, who were responsible, et al?

I had sensed the declining fortunes of the airline pretty early after joining it in 1989. Coming after working in both private and public sector companies there were several management issues that struck me. Many of them can be subjects of possible case studies. Air India, for example, had a culture wherein one man at the helm could decide its destiny with other stakeholders, including those in the senior management, virtually having no role.

Unfortunately, this is true even today. Every incumbent chairman gives the company a new orientation distinct from what his predecessor had laid down as priorities.

They were reticent about what was happening in the organization or how it was being managed. I soon realized why it was so. Management personnel never wanted to be on the wrong side of the chairman because he decided their destiny in terms of promotions, postings, etc. Succession planning was alien to the organization as was mentoring of managers who were to don senior positions in subsequent years.

What is the role of then aviation minister Praful Patel who oversaw some 7 years of the airline when it reached near bankruptcy and had to seek government equity in 2010 for the first time since 1932? Even the government auditor came down hard on him.

I don’t think any one will dispute the fact that Praful Patel had a major say in most decisions taken during his time as civil aviation minister. (Then chairman V.) Thulasidas, for whatever reasons, was only too keen to allow decisions being taken by Delhi.
Whether it was the aircraft acquisition, merger (with Indian Airlines) or many other big expenditure decisions which harmed Air India financially were taken without proper thought or detailed discussions within the airline.

I understand that Patel used to call the board members including those of the aviation ministry and say “dekh lena” these issues are coming in the meeting today indicating they needed to be cleared?

There was an element of truth in it. There was a view that the Air India board meetings have become doctored. In fact, Indian Airlines chairman Sunil Arora, a board member, had cited examples in his letter to cabinet secretary on the directions given by the minister or his secretariat regarding the stand to be taken on agenda items to be taken up by the board.

But both board members, V. Subramanian and Sunil Arora, who voiced concerns over the affairs during the start of Patel’s tenure were asked to leave. Was it an early indication for others to fall in line?

Yes absolutely right. Overall, it was a sad commentary on how the airline was being managed.

Why did no one speak for nearly 7 years that Praful Patel was there?

It could be on two counts—either fear or lack of full knowledge. CAG (Comptroller and Auditor General of India), the two parliamentary committees—Standing Committee on Transport, Tourism and Culture headed by Mr Sitaram Yechury and Committee on Public Sector Undertakings, headed by V. Kishore Chandra Singh Deo—had brought out facts but they were perhaps not taken to its logical end.

What role did former Air India chairman Thulasidas play?

I don’t think he did anything for which he should be remembered except that Air India suffered the most under his tenure. He had assumed charge at a critical stage when the competition was growing but he did nothing eventful. I had, in fact, written numerous letters to him demanding that work practices be changed so that we can offer a top-class product to passengers once new aircraft join the fleet.

So you are saying the whole system was managed?

Yes, many officials played ball. There is no stakeholder who is above board or can be said to have played its part in Air India’s interests—UPA-I and UPA-II, the PMO for not acting even when they were told about it, EGoM for ordering aircraft, Praful Patel, bureaucrats in aviation ministry, the board members that have not played their role, the chairmen, senior management, and the unions who never tried to block them.

Some of the senior management personnel provided legitimacy by manipulating proposals or justifying them. Interestingly, quite a few of them were beneficiaries subsequently by getting post retirement jobs…….

What role did unions play?

Another weak link was that the unions held great sway on the management. They could strike at will, ground a flight when they wanted to, without the slightest realization that they were inconveniencing passengers and given the choice they will ditch the airline. The way the unions were handled left me baffled.

….Brijesh Kumar, an IAS officer, had assumed charge transferred me out of the department at the Union’s behest—without even showing the basic courtesy of discussing the issues with me. If the management officials have been reluctant to take on the unions one can find an answer here—they don’t get support of the chief executive and stand penalized. I, however, refused to change and irrespective of consequences did what I felt was in the best interests of the organization.

How do you judge Arvind Jadhav?

He came with a total analysis of what was wrong with Air India but had no solutions for it. He would be remembered more for revealing the true state of airline finances, hitherto surreptitiously kept under wraps, which was indeed commendable, than for performance which was lacklustre any way. If Air India registered its highest loss of over Rs.7,500 crore in fiscal 2011-12, a good part of the blame should be placed at his door because in the wake of diminishing market share, he made Air India a low-fare airline even though it’s operational costs were high.

How do you rate aviation minister Ajit Singh for Air India?

The doling out of 37,000 additional seats to Abu Dhabi was one terrible decision from the industry’s point of view. It may have benefited Jet Airways in India but it’s adverse impact will be felt by other airlines and airports.

A lot of people say Mr. Bhargava should have raised all these issues when he was employed with the airline?

It needs to be appreciated that employees in all companies are governed by a certain code of conduct and you can’t transgress it. One can oppose the management only up to a point but not beyond because you can be labelled a rebel or invite disciplinary action.

Do you think Air India is becoming irrelevant?

I would hate to say that! I am eternally optimistic though one cannot overlook the fact that less than one in five passengers now patronize Air India and this number will go down as foreign carriers are given more seats and new airlines start.

There can be no magic wand that can bring a change in its fortunes. Action, action, action is needed. Rather than piecemeal decisions or periodic infusion of funds, a comprehensive view needs to be taken.

Why are people still going back to Air India now as it now stabilizes a bit after a shocking decade?

There are numerous positives of Air India which cannot be ignored. Besides the fact that Air India aircraft offers better seat pitch, the cabin crew can be exceptionally good at times. The food served on board has always been a hallmark. With renewed emphasis being laid on on-time performance the negative impressions of the past can be erased. However, an airline management cannot be seen lacking faith in its own product by marketing it on the basis of “attractive” (read low) fares than the strength of the product.

Where will be Air India be five years from now?

It is difficult to predict but what can be said with confidence is that the period ahead will be extremely difficult. The government is of the erroneous belief that finance is the only issue hindering Air India’s progress. The reality is that Air India needs across-the-board changes which includes strong visionary leadership, change in union’s attitude, reworking the business model and an environment which is free of political meddling.

The airline should be left to professionals to manage it. I have often maintained that it is not the government ownership which is hampering performance but political interference in its day-to-day functioning. Decisions being taken without considering the ground realities. We also can’t overlook the fact that even as a government-owned airline under JRD Tata’s leadership the airline was performing exceptionally well till 1978. The distinguishing fact being that it was then managed by professionals.

First Published: Fri, Oct 04 2013. 07 43 PM ISTMore Topics: Air India | Jitender Bhargava | The decent of air india | Mint interview | airlines |

We from Chocks-on,  wish you and your book a grand success.

With this, we sign off for the week !!

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