Professional Documents
Culture Documents
SOEs are becoming wealthier and powerful even as the overall state sector shrinks
Forming alliances with private sector specialists to increase their access to expertise and ideas
Savings funds
Present Scenario
Although it has some of the worlds biggest state owned companies, Indias public sector is a leftover of the Licence Raj rather than thrusting new national champions.. Do you agree?
License Raj Initiated by Nehru after Independence Lasted unto early 90s All private companies had to get licenses and approvals from Govt. and work under their supervision
National Champions
Lack of motivation.
Soft Budgeting.
Hardening the budget option using Input and technology more efficiently.
Other Airlines used to ask AI for help in helping them set up airlines in their home countries (like Singapore airlines and Korean air)
Indian Airlines which always made a profit & was a threat to Jet , Kingfisher and the other private players was closed down and merged with AI.
Current Scenario
Air India has the fourth largest share in India's domestic air travel market, behind Jet Airways, IndiGo and SpiceJet. Facing financial losses(Debt of Rs. 42,570 cr) Discontent among employees. Poor customer service. Market share of 14%.
A regrettable move?
Is privatization a real solution? (Private airlines like Kingfisher are in the same boat as AI)
What is really required is professional managers, a strong leadership and structural changes in management. ( If state owned banks can be successful, then why not state owned airlines?)
Bibliography
http://www.dailymail.co.uk/indiahome/indiane ws/article-2144334/Privatising-Air-Indiaobvious-option.html#ixzz23iqRgbeD http://articles.economictimes.indiatimes.com/2 012-05-31/news/31922058_1_tax-on-airtickets-aviation-service-tax http://www.economist.com/node/21559372
THANK YOU!!!