Sunday, July 19, 2009

Air India In-action

When a government enterprise like Air India books huge losses, have you ever thought who is financing it? Government or ultimately the tax payers? Had it not been a government controlled organization, a private company in this situation could have filed for bankruptcy by now. I want to highlight few fundamental things again as consideration for AI. Lean manufacturing is a concept which revolutionased the world can be extented to other areas like lean staffing, lean service infrastructure, and lean collaboration. A government bailout or IPO could be only a temporary solution to finance the losses immediately. But for sustainable survival AI need to focus on cost rationalization, performance, quality of service and customer experiences. Remember,when you determine to become lean you need to invest in quality and services for future. Any ways, thank to government or tax payers, to make AI survive. Hope Air India to be out of "Inaction" to "IN Action".

1 comment:

  1. Some Action from Air India announced recently..excerpts from Business standard: "the state-owned airline plans to hive off its three business units — ground-handling, engineering, cargo and aviation training — into joint ventures or subsidiaries by the end of this financial year.
    By marketing these services on commercial terms to other airlines, Nacil hopes to make up to Rs 900 crore a year — Rs 300 crore from each of the three. At the moment, it offers ground handling services to other players in the market."
    Source: http://www.business-standard.com/india/storypage.php?autono=366391

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