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Indian airline industry overview
Indian airline industry overview
Overview of indian aviation sector 2019
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AIR INDIA Air India Pilot’s Strike (2009) 1) On 26th September, 2009, around 300 pilots of Air India reported to be sick. This was a sign of protest against the decision of the management to reduce their productivity-linked incentives (PLI) by 50 percent. This would reduce the Rs 8 lakh per month earnings of pilots by Rs 2.5 lakh. 2) Air India had to cancel 13 flights on the second day due to the agitating pilots. Air India Chairman and Managing Director Arvind Jadhav and representative of striking pilots Captain V K Bhalla hold talks. Management extents olive branch and agrees no incentive cut will be done. But no conclusion is reached. 3) On 29th September, 2009, the Union Minister for Civil Aviation Praful Patel issues warning that if …show more content…
Air India pilot’s strike (2012) 1) On May 8, 2012, around 100 pilots went on medical leave as a mark of protest. 2) The reason why pilots of Indian Pilot’s guild went on strike was to protest the move to provide Boeing-787 training to pilots from the erstwhile Indian Airlines. 3) Later on the same day, ten agitating pilots were sacked and their union was de-recognized after 160 pilots failed to join duty. 4) Pilots put up 14 demands, they demand the reinstatement of 101 sacked colleagues. 5) On 26th May, 2012 aviation minister Ajit Singh announced that he would go ahead and hire new pilots if strike did not end. 6) AI management gives assurance to high court that it will look into the issues raised by the pilots sympathetically and strike comes to an end after 58 days, on 4th July, 2012. 7) Due to pilot’s strike Air India suffers a loss of Rs 500 crores in 45 days. JET AIRWAYS The momentum to 2009 strike 1) Jet airways made a strategic mistake by buying Sahara airlines. In October, 2008, Jet Airways sacks 1900 employees across all departments and categories as a measure to switch to leaner business …show more content…
Chairman Naresh Goyal apologizes and reinstates all 19000 employees. 3) The employees realize their vulnerability and on 24th July, 2009, National Aviator’s guild is registered. 4) On 31st July, 2009, two senior pilots who were also the office bearers of NAG were dismissed without assigning any reason. 5) Management did not offer any response to the appeals of pilots. NAG announced strike on 24th August, 2009. 6) Over 300 pilots reported sick, 700 flights were cancelled affecting 28000 passengers. 7) A conciliation meeting under the auspices of labour commissioner on 31st August did not produce any desired result. Management was asked to provide reasons for sacking employees by September 7. A few days later Jet sacked a few more pilots and on September 9 got a contempt of court order against the striking employees. 8) The demand of the strikers was reinstatement of 2 pilots. The refusal of the management was costing it 15 crore per day. 9) Finally, a draft was worked out between Congress leader Sanjay Nirupam, representatives of the pilots and Jet Airways Chairman Naresh Goyal. 10) Operations resumed on 13th September, 2009. KINGFISHER
This strike was a battle over several issues. One factor that escalated the strike intensity was the pensions battle. Billons of dollars in pensions were on the line. The Teamste...
Along with the low stock index numbers of September 17th, the airline industry and travel stocks were also rocked. One of several airlines announcing layoffs, US Airways said that they would be terminating 11,000 jobs. These heavy losses were contributed to airlines “being grounded last week [week of September 11th], plus passengers have been apprehensive to fly, in the wake of the hijackings” (Stock Markets Reopen 1).
against their employers, employees were able to go on strike and prove a point. Some
Magic Carpet Airlines (MCA) is in the midst of a collective bargaining negotiation with a union and this paper will present the case from the union’s side of the bargaining table. First, one must understand the meaning of collective bargaining negotiations; this is when both sides of the negotiations discuss wages and others perks and then come to an amicable agreement. Collective bargaining is not a simple negotiation process, because the employer and the union usually meet on more than one occasion, due to the fact that union negotiators must keep their members informed during the process and they must also present any offers to their constituents for a yes or no vote to accept said terms being offered by the employer. The textbook offered the Magic Carpet collective bargaining as a case study and students were asked to analyze the issues being negotiated, determine ways
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
On May 9th 1934 a organized labor strike started in San Francisco that would snowball into a city crippling strike. The International Longshoremen’s Association (ILA) declared a strike for all longshoremen on the west coast, until they received better wages, a union-administered hiring hall, and union membership as a prerequisite for employed longshoremen. The Strike of 1934 lasted for three months, stopping maritime trade in the ports of the Western United States, from San Diego to Seattle. The clash was between the Industrial Association (IA), composed of big business and employers wanting to break the strike, and the ILA, along with other unions that dealt with maritime trades. The Strike of 1934 displayed the power the organized labor had, and how the mistreatment of labor can shut down an entire city and coast.
Salaries has been regarded as the main reason for the strike. But there are still some of other concerns in the cause of strike. Such as large classes, lack of administration of the students’ behaviors, union rights, benefit and job security, and the evaluation of performance. All the factors were reasonable to result a strike.
Due to the labor being stranded whilst industry takes frequent flights, unionism is in stark decline. It brought the end of collective bargaining, as the capitalist found shutting operations and moving somewhere else easier than engaging with collective bargaining.
Many unions are at battle with their respected employers. Some of these fights are better known than other fights. United Airlines is trying to renegotiate contracts to save their company money. This has been a long battle for United, that some may see as having begun with the events of September 11, 2001. In truth, the International Association of Machinists, the union that represents a majority of United employees and United have been locked in a heated battle for some time now, even before the events of that September.
This is an area where Southwest Airlines needs to focus more of their attention. Currently, Southwest Airlines, is approximately 85% unionized and the airline is trying to negotiate seven contracts concurrently. The ramp, operations and cargo unions have been working without a contract since 2011. The pilots and mechanics have not had a contract since 2012 and the flight attendants contract expired in 2013 (Leff, 2015). In a statement made by the president of Southwest Airlines’ Pilots Association, union representatives must do something while ongoing poor decisions are being made by management that are affecting our airlines passengers (Schlangenstein, 2016). Additionally, the union is also demanding the removal of CEO Gary
In that case, unions have already blamed the fiasco. That is because the fiasco make the decision to outsource much of the company’s IT jobs, as Indian staff are paid little compared with their British counterparts.
Jaspal, S. (2012, March 14). Risk Management Failures in Kingfisher Airlines. In Risk Board. Retrieved March 26, 2014, from
This company became the public limited company in the 1946. The company has international and the local routes and its performance is increasing day by day with the pace of the growth as compare to the other airlines in the industries in the area and the channels in which this airline is working. External factors affecting the Air India Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which affect the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled.
The employees were having issues and company intermingling had proven to not change without an intervention unless the workers take things into their own hands. Acknowledgements to some valiant employees, where a union was discussed and the idea came to life (Featherstone, 2012).
The airlines was expected to cut up to 5,000 jobs and spend a maximum of 850 million ringgit (US$236 million; euro198 million) in compensation packages as part its plan to return to profitability, making it one of the country's biggest corporate retrenchment exercise.