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 August 1 will be a milestone in the history of AI or rather the new national Aviation Company Ltd(NACL), the IA and AI. Its first direct, non-stop flight from India to the US will take off in a mint-fresh B-777.
Few noticed though that early July was also a milestone for IA as it got the first of its 43 new Air-buses after the merger--an A-321. And that's symptomatic of the general feeling in IA of being ignored as the merger nears completion.
There's also a sense of sadness among IA employees as the airline's brand gets wiped out and apprehension that the merger may be a takeover.
With some of AI's management flexing its muscles, IA unions and pilots are starting to feel like step-children. And despite meetings and assurances from civil aviation minister Praful Patel and V Thulasidas, CMD, NACL, and chairman, AI, they feel uneasy.
The merger will be a mammoth task, all right. Integrating over 33,000 employees, some 15 different unions, different work cultures, rules, etc, won't be child's play. What are the grouses, how justified are they and what's the way out?
Air Corporation Employees Union(ACEU):
This is IA's largest union with 12,000 members. Compare that to AI's Employees Guild which has just 6,000 members. And yet the ACEU feels insecure. "The merger seems to have been speeded up," says J B Kadian, gen secretary, ACEU. "Also, where is IA's brand? It's disappeared. The mascot is AI's Maharaja. The logo looks like AI's with the orange Konark Chakra of IA being barely visible in the red backgroud. Windows on the new planes too have the red border design and line emblematic of AI," says D K Shetty, president, ACEU. Kadian says emotionally,"I worked here for 29 years. It'll be a sad day for me when IA ceases to exist."
Though brand is an issue, the fact remains that AI's brand is stronger than IA's, says Madhukar Sabnavis, brand expert and country head, Discovery and Planning, Ogilvy & Mather. "IA is the mother archetype--homely, comfortable and down-to-earth. But, the brand has become jaded. It's also got weakened by competitors like Jet and Kingfisher."AI, on the other hand, he says, is an extension of India--warm and friendly and not-so-perfect. "It's also connected with foreign travel. It's main USP is the Maharaja. Though royalty is archaic now, the mascot has charm and endears itself to us. Besides, AI has no Indian competitors as yet in foreign skies and therefore is a stronger brand." But to keep this brand value going, it's important to deliver on the experience, be it new planes, warm staff, etc. "The hardware has to be as strong as the software. It shouldn't simply be old wine in new bottles,"he adds. The main bug-bear with ACEU is recruitment and promotion rules. "In AI, clerical staff, for example, is eligible to become officer after 19 years of service and can be promoted as manager,etc. This was implemented 10 years back. At IA, promotion takes longer," says Kadian. "We've already lost 10 years. How can we work under junior staff?It's demoralising,"says Shetty. Yes, they admitted Patel had given 'something in writing'about seniority being maintained, but they wonder how clerical grade can be merged with managerial. "Besides, it won't be from retrospective effect," says Kadian. A wait-and-watch policy is being adopted.
A Joint Action Committe with all eight unions of IA, meanwhile was formed three months back and met in Hyderabad on Saturday.
The division of NACL into various strategic business units is another airpocket for them. "Though we've to compete with private players, we're also offering them our infrastructure. That's strange,"says Shetty. But it would churn out money for the company, isn't it?"Money is not the issue. Departments like ground support are anyway making money. It's about surviving in a competitive atmosphere." There's also the fear of losing jobs. "The examples of BALCO and Modern Foods can't be forgotten. We fear future jobs will become contractual,"says Shetty.
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