Air India's Revival: Leadership, Privatization, and Industry Impact

This essay explores the critical role of leadership in Air India's turnaround, emphasizing the importance of aligning programs with business strategy and customer satisfaction. It examines the impact of organizational structure on the transition of the state-owned enterprise, highlighting inefficiencies, legacy issues, and challenges in privatization. The essay also discusses the vital role of human resources and the potential impact of privatization on employees, including concerns about work culture and job security. Furthermore, it analyzes the costs and risks associated with the Air India and Indian Airlines merger, considering factors such as working culture, compensation, and employee discontent. Finally, the essay evaluates the industry environment's role in a successful transition, focusing on the shift from public to private ownership and the importance of regional connectivity and national integration. The Government of India's control and market share dynamics are also discussed, alongside recommendations for improving tourism and culture while addressing legacy issues and non-profitable routes.

1. The importance of leadership in the turnaround of Air India?
Air India has worked on the leadership through different evidences. It worked on linking the
programs from 2005 that helped in growth of the organization with learning design, business
context, strategy and the mission. The focus has been on the customer satisfaction, with growth
rate that emphasizes on the sustained profitability. It helps in providing the different work
environment standards to retain and then develop the employees who are committed to the
corporate vision. The leadership challenges come with meeting the path of success with the help
of “Growing Together” strategy to recognize the framework like the rewards for performance. It
also helps the proprietors of leadership that impact the leadership behavior. A thread has been set
for the turnarounds to gain the staff trust in the negotiation of the staff compensation which is
then linked to the productivity and to handle the “low cost” model that is set through the
subsidiary, deploying technology that helps in the enhancement of the internet bookings, heading
the fuel with reduced costs (Moosa, 2016). This could only be achieved through the strong
leadership which does not necessarily focus on the aviation expertise.
2. The importance/ impact of the organizational structure on the transition of the state-
owned enterprises (SOE)
There have been times where Air India has found it difficult to meet the competition or shred
workers with larger incurring losses. There have been issues related to the service sector and the
promotional firms that are meant for the development of infrastructure to crowd with private
investment or for helping the firms to access the markets and the other resources effectively.
There have been issues related to poor policy making practices which has a major impact on the
organizational structure (Varottil & Lee, 2017). There are inefficiencies and legacy issues with
poor route and the optimization of aircraft that leads to the failure in the opportunities and the

chances to give way for the private carriers. It also includes the problems related to the frequent
shuffling of the management staff. The challenges of privatization has also occurred with
bringing a concern for the valuation of airlines. Air India needs to work on handling the
inheriting of robust debt and then a diving market share that has been opined for the privatizing
of the beleaguered airlines where one does not life it from the dire straits.
3. Human resource plays a vital role in the success of any company, what impact will the
privatization of Air India have on its employees?
Air India needs to focus on moving forward with keeping profit in mind. Currently they are
hiring the different people like engineers, pilots etc., for the functioning of their company. The
privatization can lead to a change in the business ownership mainly when it concerns about the
work culture, the mindsets and the environment of working for the people in the
organization(Ratna, 2018). There are fears which are related to the national security that will be
at risk as well. The issues are about the airlines who would not be able to life from the straits.
There are other issues related to the adoption of GSTN number, which needs to be considered
and looked into (Rikhy, Roberts & Cheung, 2014). The selling of real assets which are owned by
Air India and then exploring them will help in properly working over the standard rights that will
help in easily handling the changes in business ownerships as well. If privatization comes into
existence, then there is a possibility that AI will set the rules for the cabin crew and the ones who
are fit for the job will only be hired. With the disinvestment process, the government will also
have to face different issues with privatization.
4. Merger strategy: what costs/ risks are associated with the Air India plus Indian Airlines
merger?

There are different risks related to the working culture, areas of operation, compensation and the
working conditions of the company(Ratna, 2018). Apart from this, the entitlements for both the
companies differ where merger tends to result in massive discontent and frustration among the
staff. The demerger of the ground handling and the engineering companies tend to add to the
problem where the appearance of the no-merger scenario could have been still a profit. The poor
policy marking practices, the poor employee management, and the issues related to the
management relations are considered to be the major reasons for the company to proceed further.
There are recommendations for the industry to work on the improvement in the Tourism and the
Culture with the ignorance of the Public Undertakings (Ratna, 2018). This will include the
details of how one can work towards managing the legacy issues and the other operating and the
non-profitable routes so that the clients can work over the failures to utilize the opportunities and
getting the chances for making a proper way to the private carriers.
5. What role does the industry environment playing the successful transition plus gaining
above-average returns?
The airline industry plays a major role in handling the transitions where it has been seen that Air
India has been switching from the Public to Private Ownership which is seen as a direct assault
on the emotions of Indians. In the socialist’s state, there are national carrier roles which are not
generally limited for the messages of ferrying or capturing the market share. Hence, an important
role is played for the regional connectivity and national integration process. The Government of
India is working on the control of carrier with change in development that has a major bearing on
Air India. The observation has a major market share that leads to advocacy for privatization and
de-regulations for the state-owned carrier(Ratna, 2018). The suggestions are related to the
combination of political indecisiveness with red tapism by the vested interests that led to the

voices of advocating the privatization to become faded. The analysis is defined for the operations
that are set for the non-profitable routes with frequent shuffling in the senior management.
References
Moosa, F. (2016). “Another version of this moment exists”: Renée Sarojini Saklikar's children of
air india and the Air India Saga. South Asian Review, 37(1), 71-91.
Ratna G., (2018). Air india airlines transitioning from public to private. Distributed by Case
Centers
Rikhy, A., Roberts, J., & Cheung, S. (2014). Global airport privatisation: Trends, recent
developments and challenges ahead. Journal of Airport Management, 8(4), 300-304.
Varottil, U., & Lee, J. W. (2017). Skies Half Open: Foreign Investment in India's Airline
Industry.