I have a fondness for the Indian national carrier and am definitely biased towards it. My parents flew for Air India in the 70’s, they met & fell in love at their jobs and I am what is often referred to as an Air India baby. It helped introduce me to the world outside India and helped start a passion of travel that has defined my tastes and personality in profound ways.
The systematic rape of the airline and the constant barrage of accusations have forced me to speak up and inform people of what has been known for long in private but has not been made public.
Air India was nationalized by the Indian Government as it could not start an airline of it’s own but wished to have one.
Even during the closed economy days Air India bore the burden of the desires of elected officials, whether it be international travel or staying in local five stars.
The Centaur group of hotels were dismally loss making for over 20 years, to keep the hotels alive, Air India staff was forced to stay at centaur locations for inflated prices and forced to keep staff at the hotel for stand by.
Cabin Staff within Mumbai were put up in Centaur hotels for 8-12 hrs when they were on standby, whereas previously they stayed at their homes and were informed by phone and then picked up by a company transport. All of this was done to fill up rooms. This way the airlines revenues were diverted to centaur and lowered centaur’s losses while dragging Air India into the red.
Once the economy was opened up centaur was sold off in a hurry and most of the transactions had evidence of crony favoritism and outright corruption.
Now the good part: Politicians from across the spectrum have huge financial interests in private airlines.
The number of airlines allowed to fly a particular sector are limited and hence priority is given to older airlines. For newer players to get these often lucrative routes they need Air India (the older player) to give them up.
As a result Air India is being forced by it’s upper management which comprises of IAS officers chosen by the government to give up lucrative sectors such as JFK – Mumbai Non stop, Gulf Sectors, European Sectors, Asian Sectors so that private players can profit from the international game. Air India’s middle management which comprises of employees who have risen through the ranks, hence have far more to lose with Air India failing than upper management (Pensions, PF’s etc), have been unsuccessful in stopping this loss of lucrative sectors.
Air India has placed one of the largest aircraft orders in the world.
Air India will now be in the news for its losses and how it is financially unviable for the government to run. Losses will be ballooned with smoke and mirror accounting to make Air India seem like a financial time bomb.
Then when popular opinion has reached a critical mass and there is support for the sale of Air India it will be sold to private players, new aircrafts in tow, at stupidly low prices (similar to the centaur sale).
The private airlines, thanks to their political guardian angels, with get new aircrafts at bargain prices and the Indian taxpayer will be left paying the loan installments on the aircrafts for the next 60 Years.
This is how to siphon public funds 101.
