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Case Study - I


Group 3
Mansi Agarwal (41)
Arunima Banerjee (42)
Rahul Bhatia (44)
Tanya Bose (46)
Saurav Dagdelwar (48)
Ashish Mishra (63)
Yohaan Nirmal (66)
Ravindra Sisodiya (77)
IA was formed in may 1953 with the nationalization of the airlines
industry through the Air Corporations Act.
While Air Indian provided international air services, IA and its
subsidiary, Alliance Air, provided international air services.
IA and Alliance Air carried over 7.5 million passengers annually.
The company had a fleet strength of 55 aircraft 11 airbus A300s, 30
Airbus A320s, 11 Boeing B737s and 3 Dornier D0228.
Problems Identified
IA failed to retain its market share against competitors post
Why and how Indian Airlines was constantly plagued by HR problems.
How IAs lackadaisical handling of its HR problems contributed to the
overall mess.
Poor management and stubborn work force can drive a monopoly into
What happened after
To sustain and compete in market :
Launched a new image building advertisement campaign.
Improved its services by strictly adhering to flight schedules.
Provided better in-flight and ground services.
Also launched several other new aircraft, with a new, younger, and
more dynamic in flight crew
Why did IA fail to retain its
market share?
Sahara and jet airways (Jet) provided better services and network.
Excessive expenditure on human resources.
Unnecessary interference by the ministry of civil aviation.
It operates flights in the north-east at highly subsidized fares to fulfil
its social objectives.
Human Resource Problems:
Periodic and realistic assessment of the manpower needs
Need-based recruitment
Optimum utilization of the recruited personnel
Abolition of surplus and redundant posts
No Proper Mechanism to handle the labor relations particularly the
strikes and also the compensation claims.
Lack of strict HR policies and regulations which led to a poor control
over the employees. This led to frequent protest by unions of various
departments causing a lot of monetary as well as goodwill losses for

The people heading the airline were more interested in making peace
with the unions rather than looking at the companys long term
Thank you..!!!