Indifferent sarkari attitude cost Air India brand globally CAG

Merger of state-owned airlines, erstwhile Indian Airlines into Air India, has come under the Comptroller and Auditor General's (CAG) scrutiny. In its final report, the auditor noted that till date Air India does not have any time bound plan to merge key activities. Further, Air India brand has taken a beating in the international arena due to “an indifferent sarkari attitude,” it noted.

CAG said Air India failed to control employee costs, reduce staff strength and rein interest costs. The airline has over 40,000 employees including those on contract with an annual wage bill of Rs 3,000 crore. The auditor has recommended curtailing operations on loss-making routes and their regular monitoring to maximise revenues. The employee costs should be controlled and incentives be linked to company's productivity, CAG recommended. It said the airline should stop all free upgrades on business and first class, including those for its employees.






By
Neha Jain

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