Summer Training Project Report ON: "In Partial Fulfillment of The Requirement For The Award of The Degree"
Summer Training Project Report ON: "In Partial Fulfillment of The Requirement For The Award of The Degree"
ON
“In partial fulfillment of the requirement for the award of the degree”
BACHELOR OF BUSINESS ADMINISTRATION
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DECLARATION
I, Shalini Prem Kumar , student of B.B.A Vth semester , hereby declare that I have undergone
the Summer Training at Air India Ltd.(AIL), New Delhi.
I also declare that the present project is my original work. The content of this report has not been
submitted to any other university or institute.
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ACKNOWLEDGEMENT
It would be a great pleasure to express my gratitude towards all the people who have helped me
in completing this Summer Training. Firstly I would like to thank , Mrs. Renuka, and Mrs.
Kaushal , Mrs. Pankaj and Mrs. Sarla. Their insight and inputs have helped me a lot during the
course of this Summer Training. Secondly, I would also like to thanks Mr. Lalit who helped me
in the arrangement of this field this Summer Training. All other employees at AIL too cannot be
ignored for their help and support.
I would also like to thank my family and friends (my co-interns too) who helped me financially
and providing me with the moral support in finishing this program within the given period of
time.
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EXECUTIVE SUMMARY
Air India Ltd. (AIL) was incorporated on March 30 2007 under the scheme of amalgamation of
Air India and Indian Airlines limited. My summer training at AIL has been a period of great
experience and learning. It helped me to gain an insight into the functioning of the personnel
department .My study had special emphasis on understanding the scope of passage programs. An
attempt was also made to highlight the IR related issues faced by the employees in the post-
merger scenario. The experience of the study will definitely help me in future endeavors.
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INDEX
Serial Particulars Page No.
No.
i. Company Profile 6
ii. Objective 34
iv. Departments in HR 37
v. Major Competitors 42
xii. Findings 69
xiii. Recommendations 70
xiv. Limitations 71
xv. Conclusion 72
xvi. Bibliography 73
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COMPANY PROFILE
(AIR INDIA LTD.)
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COMPANY PROFILE ( AIR INDIA LTD.)
The Air India Ltd. (AIL) was incorporated under the Companies Act 1956 on 30 March 2007
and is owned by the Government of India based at the Air India Building in Airman Point,
Mumbai. The Company was created to facilitate the merger of the two main state-owned airlines
in India: Air India, with its subsidiary Air-India Express and Indian Airlines, together with its
subsidiary Alliance Air. Whilst the merger and integration process has started, and a few routes
have been rationalized, a lot remains to be done before the various units start functioning as a
cohesive airline.
HISTORY- India is India’s national flag carrier. Although air transport was born in India on
February 18, 1911 when Henri Piquet, flying a Humber bi-plane, carried mail from Allahabad to
Nain Junction, some six miles away, the scheduled services in India, in the real sense, began on
October 15, 1932. It was on this day that J.R.D. Tata, the father of Civil Aviation in India and
founder of Air India, took off from Drag Road Airport, Karachi, in a tiny, light single-engine de
Havilland Puss Moth on his flight to Mumbai (then known as Bombay) via Ahmedabad. He
landed with his precious load of mail on a grass strip at Jehu. At Mumbai, Neville Vincent, a
former RAF pilot who had come to India from Britain three years earlier on a barn-storming
tour, during which he had surveyed a number of possible air routes, took over from J.R.D. Tata
and flew the Puss Moth to Chennai (then Madras) via Bellary.
MISSION STATEMENT OF AIR INDIA- “To become a world class airline and to provide
the finest service in the operations.”
HUMAN RESOURCE- The Company has been following Government’s directives with regard
to representation of scheduled castes/tribes. As 2011, the strength of staff was 28,085.
MARKETING- The Company strives to improve its product on an ongoing basis and constantly
endeavors to adopt aggressive marketing strategies and innovating pricing policies to achieve a
better market and improvement in revenue realization
AIRPORT MANAGEMENT- The airport authority of India manages most of the airports. Air
India pays various charges like landing, parking and route navigation fee etc. to the airport
controlling agencies for using the airport.
WELFARE ACTIVITIES - The Company provides various welfare activities to its employees
such as medical facilities, subsidized canteens, educational scholarships, festival schemes etc.
USE OF HINDI- The main motive of the company is to promote Hindi as the official language
in order to fulfill its overall objectives and is continuing its efforts in accordance with official
implementation.
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HISTORY
Indian Airlines was constituted as a corporation under Air Corporation Act, August 1995. It is
wholly owned corporation of the government of India and is a product of nationalization of the
existing private airlines operating scheduled air services within India and between I ndia and
Burma, Nepal, Ceylon, Pakistan and Afghanistan. The Airlines, which merged and integrated to
form Indian Airlines, were:
Airways (India) Limited.
Air India (operating domestic service only)
Air services of India Limited
Deccan Airways Limited
Himalayan Airways Limited
Bharat Airways Limited
Indian National Airways
Kalong Airways Limited
Before 1953, i.e, before these Airlines merged to form Indian Airlines, there were no set rules
and standards of operations of the Airlines. The operations mainly were competition oriented and
there salt of which was that every Airlines wanted to be the cheapest one. Thus resulted in almost
all the Airlines did not have enough money to maintain the Aircrafts. They were presented an
excellent example of unhealthy competition. Ultimately the Govt. took over by passing the Air
Corporation Act and Indian Airlines come into being. The affairs of the corporation are
conducted by a board of Directors.
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Indian Airlines is one of the public sectors corporations in India. A statutory corporation like
Indian Airlines is formed with definite objectives in the interest of the public through based
on pre-set principles.
It shall be the function of the corporation to provide safe, efficient, and adequate, economical and
properly co-ordinate air transport services whether domestic or international or both.
Corporation shall so exercise their power as to secure that air transport service are developed to
the best advantage and in particular, so exercise their power as to secure that the services are
provided at reasonable charges. The Act provides for the constitution of a Board of directors,
which may exercise all such power and do all such acts and things as may be exercised or done
by the corporation under this act. The Board of Directors shall consist of a chairman cum
Managing Director to be appointed by the Central government and not less than eight and not
more than fourteen other Directors to be appointed by the Central government. Indian Airlines is
a public utility service under the Industrial Disputes Act 1947 has to work in the interests of the
public. In view of this, the corporation is accountable to the public through the Govt. and
parliament for its activities. This control is twofold:
To see that corporation does not deviate from its objectives.
control because the funds of the corporation are derived from
To have financial
public funds.
The credit of launching the first real effective internal air services in India goes to Tata
sons who from 15 October 1932 began operating air mail services between Karachi and
madras once a week with a single engine aircraft. Indian National airways established in
December 1934 an air service between Karachi and Lahore linking with imperial
Airways service at Karachi. In 1934 Tata sons doubled its weekly frequency on the
Karachi-adras route and a weekly service between Bombay and Trivandrum with a halt
at Goa and annannore in Kerela. In 1937 a bi weekly service was operated between
Bombay and Delhi via Indore, Bhopal, and Gwallior. India national airways launched
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their venture by establishing an air link from Calcutta to Dhaka and Rangoon. A third
company, air services of India came into existence in 1937-38.
In 1960, the logo for Indian airlines was selected which was based on golden section of
ancient Greeks. “A” had been italicized to suggest speed and the truncation
of first
stroke indicates movement while the second emphasized on reliability.
The forward surging of the symbol was intended to show the “looking
ahead” characteristic and the orange colour gave vibrancy and purity.
The Logo has now been changed and the “Wheel of konark” which is replica of the sun now
symbolizes Indian Airlines.
Amalgamation of Air India Limited and Indian Airlines Limited with National Aviation.
Company of India Limited: The Government of India, on 1 March 2007, approved the merger of
Air India and Indian Airlines. Consequent to the above, a new Company viz National Aviation
Company of India Limited (NACIL) was incorporated under the Companies Act, 1956 on 30
March 2007 with its Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New
Delhi.It has been decided that post merger, the new entity will be known as “Air India”
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while “Maharaja” will be retained as its mascot. The logo of the new airline will be a red
coloured flying swan with the “Konark Chakra” in orange placed inside it. The flying swan has
been morphed from Air India’s characteristic logo “The Centaur” whereas the “Konark Chakra”
was reminiscent of Indian’s logo. The Corporate Office of NACIL will be at Mumbai.
…here in international and domestic market with this new image and
logo.
BENEFITS TO EMPLOYEES
National Aviation of India Limited provides benefits to its employees under two categories:
I) STATUARY BENEFITS:
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(b) Provident Fund Act, 1925:
This benefit is given to the employee after retirement from the organization.
Earlier wages were not paid on time. According to this act, the wages and salaries will
be paid on fixed time and all the deductions dine would be told to the employees.
According to this act, a committee known as works committee is formed which deals with
the welfare of the employees at the grass root level. The members of this committee are 50%
from the employer’s side and 50% from the employee’s side.
According to this act, if the employee or his family members are sick then the company looks
after their health i.e., most of the money is given by NACIL.
(f) Factory Act, 1948:
This act takes care of the service conditions, work environment etc. given to the employees. It
also keeps a check on the working hours and action is taken whenever the regulations are
violated.
A new enactment was made in 1953 where there was a provision for problems regarding labor
relations. Here 50% participants are employer’s side and 50% from employee’s side.
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(h) Provident Fund Miscellaneous Act, 1953:
In the previous provident fund act, there was no provision for drawing money before retirement.
According to modified act, if the money is refundable, six times of the provident fund salary can
be withdrawn which can be recovered in 3years in 36 installments.
NACIL can pay a maximum of 3.5 lakhs as gratuity. This is statutory and deviation is possible.
a) Scholarships:
These are provided to the wards of the employees. It basically starts from class II till the post
graduation level e.g. MBA, Engineering etc. The amount of scholarship given to the
employees for their children is on yearly basis which is shown in the table below:
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FOR DIPLOMA HOLDERS 625
b) Air passage:-
This Non-Statutory welfare facility is entitled for free and discounted passage to travel.
It is given to three types of staff:
It starts after the completion of 1 year. Air passage for the permanent staff is
shown in the table below:
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2. For Retired staff :-
Retired employees with minimum 15 years of service are eligible for this Air
passage benefit. This non statuary benefit is shown in the table below:
15-20 1 2
20-25 1 3
25 & above 2 4
Retired Employees are also given this benefit:
Passage for SOL (Staff On Leave)
Passage for SOD (Staff On Duty)
- SOD is granted additional passage for the purpose of any official work.
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3. For Decease Employees:
If any employee dies while service then, he will get Air Passage benefits half of what he
was actually getting while working. If any employee dies after retirement then, he will get
Air passage benefits half of what he was actually getting after retirement.
For deceases employees, Air Passage benefits will be given only to employee’s spouse
or children .
Note:
Family is inclusive of spouse& children.
Spouse- Husband/ wife.
Children-Daughter/Son/Daughter-in-law/Son-in-law.
Passage year for the 2 years can be combined.
Passage year starts from 1st August – 31st July.
Food facilities are included in the passage.
c) Housing Colonies:
NACIL provides Housing facilities to their employees on the basis of their grades
and as per their seniority level which is shown in the table below.
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Superintendent 9 B 48
Officers 9A-15 C 88
Directors 15 & Above D 22
A notification or a form is distributed to all the employees according to their grades.
Note:
For the employees who came under grades 1 to 9:-
Employees for this grade will get Type of flat A/B as shown in the above table.
For the employees who came under grade 9A:-
Employees for this grade get the House facility on the basis of their Joining date for the
particular post.
For the employees who are having their grades 15 &above:-
Type of Flat D is given to them.
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CRITERIA FOR THE OUT OF TURN ALLOTMENT:
Requesting applications.
Authority is approved by Executive Director
After three months of retirement, employees have to vacate their houses. But if
due to some reasons, they are not able to vacate their homes, then, some amount of rent is
deducted from their money as per the market rates. But after some point of time, letter A is given
to them in advance for vacating their homes. But if they are still not ready to vacate their homes
then Letter B is given to them. And after some point of time Letter C is given to them. If an
employee is still not ready then strict action against them is taken.
d)Holiday homes:
Holiday homes have been established at a number of hill resorts and places
of tourist interest. Staff is required to pay the nominal rent for the accommodation. Holiday
Home is providing in 4 different regions at different stations which is shown in the table below:
Regions Station
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Note:
Holiday Homes are given for the particular year only.
Facilities for the Kitchen are included.
In winters, Heater facilities are limited if an employee uses the facilities given
beyond the limits then certain amount is charged from them according to the rules
and regulations of NACIL.
AVAILABILITY FOR THE ROOMS
For staff 1
For officers 2
Deductions/Charges for the Rooms:
½ 25
3-9 35
9A-19 75
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Maximum 5 days stay is given for Dharamshala
Maximum 3 days stay is given for other stations.
e) Medical Facilities:
f) Loans:
Basically three types of loans were given to the employees. But now this
facility is not given to the employees since 2003-2004 onwards.
Housing Loans:
Vehicle Loans:
Loans are granted to employees for the purchase of cars, scooters and cycles,
subject to the availability of funds. Vehicle loan limits are as under:
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Vehicles Amt. (In Rs.)
New car 75000/-
Old car 50000/-
New scooter/motor cycle 15000/-
Old scooter/old motor 6000/-
cycle
Cycle 600/-
Miscellaneous Loan:
On the death of an employee while in service, his family is paid the group
insurance, quantum of which depends on the pay drawn by the employee
at the time of his demise. This is a non- contributory scheme. The
insurance amount varies from Rs. 15,000/- to Rs.1, 50,000/-
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i)Festival Advance:
Employees who wish to pursue higher studies are granted financial assistance
subject to a maximum of two courses in the entire service of the employee.
Employees are reimbursed tuition fee, admission fee, examination fee and an
amount up to Rs. 300/- for the purchase of books.
k) Cooperative Thrift & Credit society/ Fair price shop/ Death benefit society:
The company grants various facilities, to the above societies, formed by the
employees from time to time.
l) Employees working at the airports at Delhi, Mumbai, and Kolkata are provided
free/subsidized transport from various rallying points.
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m) Retirement gifts :
n) Community centers:
Rent RS 1250/-
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For employee’s other relations:
Rent RS 5000/-
medical certificate in the prescribed form be granted accident and disability leave upto a
maximum of 120 days. (B) During the period of leave granted under sub regulation (A) the
employee is entitled to his full pay; provided that an employee who is unable to resume duty
after the expiry of the leave regulation, may be granted, at the discretion of the Managing
Director, an extension of such leave on dull pay for a period not exceeding 274 days, if a medical
board constituted by the corporation for the purpose, recommends such extension .The grant of
this leave is subject to the condition that the accident or illness is not due to the employees’
negligence or default and that the employee obeys all instructions given by the approved Medical
Authority as to treatment during the period of absence.
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Study Leave:
Quarantine Leave:
Maternity Leave:
A female employee is eligible for grant of Maternity Leave on full pay for
a period, which may extend upto 135 days.
Paternity Leave:
A male employee is eligible for grant of Paternity Leave on full pay for a
period of 15 days during the confinement of his wife.
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Extraordinary Leave:
origin affecting one or more limbs (but
Paralysis of vascular, infective or degenerative
not including paralysis like Ball’s palsy); or
Significant mental illness treated in government mental hospital ( in such cases a
certificate from the hospital superintendent or any other Competent authority of a Govt.
Mental hospital empowered to issue such certificate shall be accepted by the corporation
subject to the approval of the same by the Medical Officer of the Corporation.
On the recommendation of the Medical Officer of the Corporation, Special Sick Leaves
may also be granted in cases where the employee is suffering from the following
diseases or ailments or injury requiring hospitalization or prolonged rest in bed.
Renal (Kidney failure)
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Hepatic (liver failure)
Chronic Corpulmonale
Empyma the races
Collagen diseases:
Systemiculus reythemetos us
Polar teritis nodose
Progressive systemic disease
Ploymycsitis
Rheumatoid arthritis
Jomyelinating disease
Injuries to important internal organs
Complication of fractures requiring prolonged hospitalization or rest in bed.
Significant diseases of the nervous system.
Any other major illness or injury requiring hospitalization continuously for a period of 3
months or more provided such hospitalization has the approval of the Medical Officer of
the corporation.
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CRM IN AVIATION
Anything else ?
50- 60% of customers are not profitable and customers providing less than 20% of the
The cost of acquiring a new customer is 6 times the cost of selling to a current customer .
69%of customers leave because of poor service. Only 13% left because of product
dissatisfaction and 9% because of price.
The Aviation horizon in India is becoming increasingly competitive. Airlines need to
stay more customers focused and employ effective CRM regardless of whether they are
PSUs, full-service providers, Low-Cost Carriers (LCCs) or innovators.
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Need for a Customer-focused Initiative
Increased economic activity has meant that more and more people are travelling
for business as well as leisure purposes. The situation today is such that travel,
overseas as well as domestic, has become so common and prevalent that it can be
easily termed a ‘commodity’.
The vast number of options and choices available to a Customer and the explosion
of information have meant that every customer is having individualized needs
which are unique and cannot be generalized .Today, every customer expects the
Marketer to cater to his/her own needs .Hence, the era of Mass Marketing is
almost dead. The need of hour is one-to-one marketing wherein every customer is
taken care of for his /her special needs.
The comforts which Marketers have enjoyed in the earlier times were mainly
because of the generalization which was made while addressing customer needs.
On advertising message or campaign was thought to be sufficient for reaching the
message reaching making it easier for the Marketers.
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(iv) Its about ‘Revenue’ and ‘Competitive Edge’
The increasing demands of customers and the stakeholders has meant that costs as
well as prices have to be contained on one hand and on the other the revenues
need to be increased for gaining a sustainable competitive advantage over the
competitors.
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OBJECTIVE
To study about passages and work on process of issuing them to the employees.
To work on SAP Software used in Air India Company.
To study awareness and satisfaction level among employees.
Study the major functions and processes of the personal department.
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SWOT ANALYSIS
For a country of continental size like India, a strong reliable and efficient civil aviation sector
goes a long way in promoting and sustaining tourism. Air India being the undoubted leader in
this industry cannot operate in a vacuum. It needs to keep its eyes and ears open to survive in the
liberalized economy of our country, which has paved a way for any private airlines to operate
along with it. The internal and external environment contained various strengths, weakness,
opportunities and threats which need to be identified well in advance to take care of various
situations that arise out of them.
Strengths-
The major strength of Air India is its vast infrastructure build over last four decades.
Vast computerized network
Largest network
Net profits after a gap of 7 years
Creation of profit centres
Weaknesses-
Lack of personalised and customer friendly services.
Overstaffing in previous years.
Under utilisation of human resources.
Stringent rules.
Proposed disinvestment.
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Psychographic Segmentation:
Air India has a strong image of an official national carrier.
Most
of the government officials, bureaucrats including the President and Prime Minister of
India travel by Air India.
People who are travelling by Air India since the past few decades are still loyal to it.
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DEPARTMENTS IN HR
RECRUITMENT
Recruitments are an important part of a business human resource planning. In all business,
people are vital resources and they need to be managed as such. The overall aim of the
recruitment and selection process is to be obtaining the number and quality of employees that are
required in order for the business to achieve objectives.
Internal recruitment - This refers to the felling of job vacancies from within the businesses
employees are selected rather than employing some one from outside. A business might decide
that it already has the right human resource within the organisation. The Recruitment policy is
concerned with quantity and quality of manpower, it establishes broad guidelines for Staffing
process. Recruitment is a process of searching for perspective employee and stimulating them to
apply for jobs.
Internal vacancies are usually advertised with in the business via variety of media: 1. Staff notice
board. 2. Internets 3. In house magazines/newsletter 4. Staff meetings
1. Gives existing employees greater opportunity to advance their carriers in their business.
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There are three main stages in recruitment:-
involves the preparation of job description, job
Identify and define the requirements. This
specification and person specification.
Attract There are various methods for doing this which are described in
potential employees.
a separate revision note.
Select employee. The appropriate people from the job applications.
External Recruitment- This refers to the feeling of job vacancies from at side the business. Most
business engages in external recruitment fairly frequently, particularly those that are growing
strongly or that operates in industries with staff turnover.
There are several ways of looking for staff outside the business: Employment/Recruitment
agencies: - These businesses specialize in recruitment for specific sectors (e.g. finance, travel,
secretarial). They usually provide a shortlist of candidate based on the people registered with the
agency. They also supply temporary or interim employees. The main advantages with using the
agencies are the specialist skill they bring and the agencies are the specialist skill they bring and
the speed with which they normally provide candidate. They also reduced the administrative
burden of recruitment. The cost is the high agency fees charged often up to 30% of the first year
of anyone employed. Recruitment consultancies:-“Up market” Recruitment agent who provide a
more specialized approach to the recruitment of key employees and senior management. They
tend to approach individual with a good reputation rather than Rely on long list of registered
applicants often using privileged industry contact to drawn up a sort list. The cost of using a head
hunter or recruitment consultant is high.
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Disadvantages of internal recruitments:-
Limits the number of potential for a job.
External candidate might be better suited/qualified for the job.
Another vacancy will be created that has to be filled.
may feel they have the automated right to be promoted, whether or not they are
Existing staff
competent.
date and
Complete application packages must be submitted prior to the advertised closing
time to be considered otherwise they will be excluded from consideration.
Acknowledgement is sent to all applicants within a week of closing date of the application-
filling period. This will be the only notification for candidate not moving forward to the
testing/interview phase of the recruitment
If a position a part of union bargaining
unit, internal applicant who meets minimum
requirements will be interviewed first.
External application will be screened to ensure they meet the requirements for applicable
position.
The most qualified will be invited to participate in the interview phase of the recruitment.
Notification
of the time and location of a test and interview will occur three to seven working
days in advance byte phone, e-mail or regular mail.
Reference check will be conducted after the testing and interviewing for the final candidates.
When the candidate is recommended for selection, approval from management must be
obtained before a job offer is made.
Background/security checks and approvals from management must be obtained before a job
offers made.
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Candidate that participate in the testing/interview phase that are not selected are notified
upon the conclusion of the recruitment.
The main one being that a wider audience can be reached which increases the chance that the
business will be able to recruit the skills it need.
Promotion to selection grade will be on the basis of rigorous selection on merit from amongst
the employees in grades or interlink grades below the grades concerned and shall be limited
to the number of posts declared as such on the cadres according to the sectioned strength
from time to time.
All cases of difference of opinion between the competent authority empowered to make
appointments to the Promotion Boards shall be referred to the next higher authority is a
sitting member of Promotion Board in which case the recommendation of the Promotion
board shall be final.
Compensation based Recruitments:-At the death of the employee during service, the
provision to provide appointment to his spouse/children under the rules and regulations of the
company.
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PERFORMANCE APPRAISALS
To ensure that all employees perform their jobs to the best of their abilities, the company
has a performance appraisal process which stresses the importance of employees being
recognized for good performance and receiving appropriate suggestions for improvement
as necessary. Consistent with this goal, performance will be evaluated in writing at least
once each year by supervisors. This performance appraisal provides an opportunity for
the employee and supervisor to discuss job related performance and to establish goals for
improvement and further development. The goal of the performance appraisal is to
enhance the employee’s job performance while establishing good communication
channels between the employee and the supervisor.
Supervisor reviews employeejob description (update if needed and email a copy to the
Director of Compensation).
If
changes are made to the employee's job description, update the corresponding Position
Evaluation Questionnaire (PEQ) and email a copy to the Director of Compensation.
Supervisor reviews employee attendance record from previous year
Supervisor from employee regarding past year accomplishments/challenges
seeks feedback
and future year goals
Supervisor completes performance appraisal
Supervisor meets with employee to discuss performance appraisal
Supervisor forwards completed appraisal to Department Head for review and signature
Department Head forwards signed performance appraisal to Human Resources
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MAJOR COMPETITORS
1. Jet Airways
2. Indigo Airlines
3. Vistara
4. Emirates
5. Singapore Airlines
6. British Airways
7. Qatar Airways
8. Qantas Airways
9. Malaysia Airlines
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RECENT PROBLEMS FACED BY THE COMPANY
Air India Limited (AI), is running into huge losses, according to report. It has accumulated
losses over Rs. 7000 cr; working capital loan of Rs 16000 cr, Annual infusion of Rs 5000 cr to
keep paying the oil and airport charges and wages. Currently the employees are not being paid
for almost 4 consecutive months and are facing uninformed transfers as well as change of
reporting structure. The financial ill-health of Air India is attributed by a civil aviation expert to a
“systematic failure of the political and bureaucratic masters who have run the airline like their
own principalities for years now. And the merger of Air India and erstwhile Indian Airlines in
March 2007 under Praful Patel’s directives has led to an unmitigated disaster”
Foreign Direct Investment : Up To 49% Of Foreign Equity & 100% Of NRI investment is
allowed Pertaining to the Domestic Air Transport Services While the passenger traffic growth
has been steady (averaging 14% in 2010-12), intense competition has impacted yields and forced
AI back into losses in an inflated cost base scenario. Presently it contributes 0.5 % of GDP and it
is expected that by 2030 it will contribute 5 % of GDP. Source: The Financial Express & The
Economic Times
Employees not paid salaries. Salary is as per productivity and 6th Pay commission is not
applicable. Issues related to structure mapping and level mapping w.r.t to rank and basic pay.
Hierarchy issues. Reporting issues due to no non level mapping. Consolidation of work force
through out-sourcing of activities mainly at lower level (Cleaning, Maintenance etc.) Since 1990-
Young cabin crew employees are hired on contractual basis. Different HR policies for AIR
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INDIA and INDIAN AIRLINES post-merger also which further exaggerate the current situation.
Staff integration and training issues. DHARMA ADHIKARI committee was made to resolve
employees issues but without having capacity to impose the recommendations.
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DOWNFALL: FINANCIAL CRISIS
AI was not prepared for competition it faced after the liberalization of India economy in
1990. Hence AI domestic market share declined from 19.2% to 14%, primarily due to stiff
competition from private Indian carriers.
Highest Employee per Aircraft ratio in the world 200:1 whereas desirable is
Overstaffed:
130-170:1.
The carrier sold three Airbus A300 and one Boeing 747-300M in March 2009 for $18.75
million to survive the financial crunch.
A culture of complete sloth in administration and faulty policies has brought Air India to this
crisis level.
Complete and responsibility for results and failures & deeply ingrained
lack of Ownership
corruption in all levels.
Employee strikes further taking it out of business, and competitors taking advantage.
duopoly partner Indian Airlines
The airline has not posted a profit since merging with former
in 2007 and relies on handouts from New Delhi to survive.
A report by the Comptroller and Auditor General (CAG) blamed the decision to buy 111 new
planes as one of the major causes of the debt troubles in Air India.
The root of the problem is with the untimely and misjudged merger of the two airlines that
has been the primary reason for the never ending ordeal of Air India.
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DOWNFALL: HR ISSUES
Pilots and crew used unsurplus methods.(Demands)
Strikes, go slow (Wages, Salary Negotiation)
Creating unnecessary strikes & Pressurizing Management (Shell out Money)
13 Agitations by 8 Different unions.
Higher Allowances for pilots who fly overseas flights.
Pilots Refused to fly people re-employed on contract.
Reporting sick at same time.
Issues in Ground handling team of IA & AI.
Asking for fixed flying hours, free meals, free stay.
IA Pilots promoted unconditionally, AI pilots should get Turn if there is immediate Vacancy.
AI was following a system under which the department head has the discretionary power to
promote and the promotions are time-bound,
while IA had a strict Human Resources (HR)
code of interviews and written tests.
46
INTRODUCTION AND STUDY OF MY TOPIC
PASSAGE
personnel department and this was my main section which I
Passage is a section in HR
under gone for training.
Following passage regulations shall be applicable to all the permanent employees of Air lndia
Ltd. who save been in the service of the Company and have completed 12 months' service from
the date of appointment.
1.DATE OF COMMENCEMENT
These regulations shall come into force with immediate effect and shall apply to all employees
on lndian scales of pay in the whole time regular employment of Air lndia Ltd. These regulations
do not apply to part-time, casual, badli or daily rated employees, apprentices/trainees and those
under contract agreement except where it is specifically provided.
2. DEFINITIONS
(i) "Employee" means a permanent employee who is in the service of the Company and has
completed 12 months' service from the date of appointment.
(ii) "Passage Year" both for serving and retired employees will be from 1st October, to 30th
September.
47
(iv) "Family" for the purpose of passage would include self, spouse, parents, children, step
children and legally adopted children. ln case of step children & legally adopted children
necessary documents to be submitted in support thereof. ln exceptional circumstances, an
employee may be permitted to utilize passages not exceeding four out of his annual entitlement
for travel of Brother/Sister/Son-in-law/Daughter-in-law.
(v) "lndia Based Officer (lBO)" - lndia based employee on posting to foreign stations.
3. QUANTUM OF PASSAGES
A permanent employee, who has completed one year's service, may be granted, during the
passage year, the following return air passages on payment of Staff Ticket Fare for self and
family on the Company's scheduled services including that of the subsidiaries, on subject to load
basrs.
Passage entitlement will be on payment of Staff Travel Fare (STF) as under or any other
charges/taxes as decided from time to time:
48
c. Rs.1000/- per coupon for non-stop ultra-long-haul flights
25%of the passage entitlement (round off to the next number) may be utilized on confirmed basis
for travel on the condition that income Tax liability, if any, on this account would be borne by
the employee.
All employees and their family would be entitled for passages after employee's completion of
one year of service. This condition would not, however, apply to Government appointees such as
Director (Functional)/ Joint MD/ MD/ CMD who are either on tenure basis or on deputation as
they would be entitled to passages from the date of their joining.
Tickets shall be issued on First come First serve basis. Confirmation will not be done earlier than
72 hours for domestic travel and 7 days in case of international Travel. The entire entitlement
can be used for domestic Travel. However, only upto 50% of the entitlement can be used for
international travel.
The entitlement of retired employees will be the same as that of the existing employees of the
same level/grade. Retired employee and Board level functionaries- who have retired demitted
office in Air lndia shall be entitled for passage facilities as applicable to their grade at the time of
superannuation.
49
Spouse of deceased serving/retired employee would be entitled to 50% of the entitlement of
passage of serving retired employee. The spouse of a deceased employee can transfer his/her
passage to his/ her family members (of the deceased employee) as per the definition of Family
i.e. self, parents, children, step children and legally adopted children.
4. Class of Travel
All Board level Officers would be entitled to travel against tickets issued in the executive class
upgradable to the highest class. Officers of the level of Asstt. General Manager, (Pay- scale of
32900-58000,) equivalent pay scale and above would be entitled to, travel by economy class
upgradable to executive class. All others will be entitled to travel by Economy Class only.
After issuance of RAO, the staff concerned will, at the time of converting the RAO into ticket,
make an endorsement that he/she wishes to travel on a particular flight at a particular date. Such
a booking can be carried out one month prior to the date of
travel. Full time ACC Appointed Directors selected through notified PESB Selection Process in
Schedule B Scale of Pay shall both on retirement and/or demitting office would be entitled for 24
passages as per the entitlement of retired Directors in the new Passage Regulations. The
entitlement of retired Dy. MDs, will be the same as that of Functional Directors. Entitlement of
officials retired as Directors when there were no Functional Directors will be that of Executive
Directors.
50
(a) lf the seats are available, it will be blocked for travel of employee and his/her family
members (from the date of booking till the date of travel but not earlier than one month)
travelling on Confirmed tickets, and will not be allotted to any other revenue passenger.
(b) ln case seat is not available on the chosen flight, he/she will have the option to change his/her
travel schedule as per availability of seats.
(c) The Revenue Management Division of the Commercial Department will allocate specific
number of seats on each flight towards this purpose.
(d) A separate RBD for staff travel will be allocated exclusively for SOL travel. lt will be called
RBD'P'. For Executives who are eligible for confirmed SOL booking in'J' class, the booking will
be done in RBD 'R'.
(e) Presently, as per Proviso to Rule 3(6) of the income Tax Rules 1962 such travel is exempted
from being treated as a taxable perquisite (copy enclosed). However, in case in future, if any
income Tax Liability is levied on such confirmed tickets then such liability, which will be
calculated on the basis of the lowest base fare of the applicable domestic/international sectors,
shall be borne by the concerned staff.
(f) Such Confirmed seats are to be reconfirmed two days priority travel by the employees.
(h) lf the Staff is not travelling and the seat is released between D-48 hrs. and D-4 hrs., the staff
will pay Rs.500/Rs.1000 as cancellation charges for domestic/ international tickets respectively.
However, the employee will be able to utilize such tickets subsequently.
(i) However, if the seat is not released till D-4 hrs., the ticket will become null and void and
cannot be utilized any further and the entire amount paid on such ticket after adjusting the
cancellation charges (as stated at Point No.h) shall be refunded to the employee. Further, if seat
is released D-4 hrs. and below, the ticket shall become null and void and no refund shall be
given.
(j) With flights overbooked to full aircraft capacity, Air lndia staff may be upgraded or
downgraded, subject to requirement as it is convenient to Upgrade or Downgrade Al employee.
However, in such cases the confirmed SOL would be given seat on 'First Come First Serve' basis
as is being done for confirmed paid passengers.
51
(g) Confirmed seat HAS TO BE released D-48 hours, in case staff is not travelling.
(k) Confirmed bookings will not be made for the Black Out Period.
(i) Air passages will not be claimed as a matter of right but will be sanctioned at the discretion of
the Company. Passages are non-cumulative,
(ii) All employees of Air lndia would be entitled to avail passages on Air lndia and its
subsidiaries. Passage availed on AASL/AICL en-route to point of destination will be considered
as one passage. No change in the sector/pax will be allowed after expiry of the passage year.
Validity of RAO will be one year from the date of issuance. Journey commencing from a foreign
station with destination to third country via lndia are not permissible. lBOs can utilize 75o/o of
their entitlement of SOL travelling between present place of posting (foreign station) and home
town (ln lndia).
(v) The passages will be allowed subject to seats being available after all paying traffic is
accommodate[d. The term 'subject to seat being available' shall be interpreted to mean that an
employee shall be accommodated only when a through passage is available on a service after
making due provision for fare paying priority passengers. ln other words the load factor shall be
taken into account at the point of embarkation and care taken to ascertain that the required space
would be available through-out before embarkation is permitted. When, however, an employee is
willing to take a chance at intermediate station and requests, in writing, for being given a passage
which may involve his being off loaded at one or more stations en-route a passage, may be
granted to him on that basis, at his own risk.
(vi) Entitlement of permanent Contractual employees at foreign locations will be as per terms of
their Contractual Appointment.
(vii) Minimum qualifying service for entitlement of Passages post retirement would be '15 years
for retired/deceased employees. However Board level functionaries CMD/JMD/Functional
52
Directors who have demitted their office in Air lndia (including eA^/ Al and lA) shall be entitled
for passage facility as applicable to their grade on superannuation.
(iv) Up gradation to Executive Class is strictly restricted to employees in the pay scale of AGM
and equivalent pay scale) & above. Merely reaching the basic pay of that scale does not entitle an
employee to up gradation. The baggage allowance shall commensurate with the class of actual
travel.
(viii) Staff Travel Fare (STF) is applicable on all types of travel. Also the employee will have to
pay for two coupons if travelling on a hopping flight where stopover is requested by the
employee.
(ix) Approving Authority for passage to Brother/Sister/Son in law Daughter in law, will be Dept.
Head/GM(P)/DGM(P) of the Region concerned/hrs. Advance passages will be allowed only in
exceptional circumstances such as death in family, urgent medical treatment of the
employee/family members entitled for passages. The Regional Director in the Region and
Executive Director (Pers. & lR) for hrs. employees, as the case may be, shall be the approving
authority. The same will, however, be subject to adjustment against future entitlement.
(x) Up gradation will be at the 'Check in Counter' subject to availability of seats. Up gradation
will be as per the instructions issued by the Competent Authority. During Black Out Period
employees travelling on "SOL Passage" may take chance at the airport which will be on "Subject
to Availability Basis".
53
(xi) No excuse shall be made by an employee granted free passages for not returning to duty in
time on account of non-availability of seat in the aircraft and responsibility for rejoining duty on
the appropriate date shall be solely on the employees.
(xii) Employees who are dismisses dire moved by way of disciplinary action or who have
resigned from the services of the Company or otherwise terminated from service are not entitled
to passage facilities. Such employees shall not be entitled to utilize the tickets/RAO taken during
service. They shall return the unutilized tickets /RAO immediately on cessation of service failing
which full fare shall be recovered from the dues payable to them.
(xiv) ln case serious charges are framed against an employee and disciplinary proceedings cannot
be concluded before retirement or a serious misconduct is detected after retirement, the
Competent Authority/Sanctioning Authority may, after issue of show cause notice, decide to
forfeit grant of air passages on retirement for a specific period or permanently,
(xv) An employee or the member of his family or dependent parent travelling in the aircraft on
free air passages will do so at his own risk and will be governed by the terms and conditions
subject to which air tickets is issued to a fare paying passenger.
(xiii) Any unauthorized use of the passages granted under these Orders and/or any breach of
these Orders is liable to be construed as a violation of Orders and misconduct on the part of an
employee/retired employee and may entail permanent forfeitures of the privilege and employee
will also be liable for disciplinary action in accordance with the Service Regulation Standing
Orders of the Company.
(xvi) Baggage Allowance will be same as applicable to fare paying passenger. However, flights
operated by Air lndia Express and Alliance Air Baggage Allowance will only be 15 kgs.
(xvii) Employees can utilize flight coupons while on SOL and SOD travel, out of sequence.
Credit cards are acceptable for payment of SOL tickets at a charge of 1.5% of the total amount
payable. Open Jaw Journey is permitted for all SOL passages across Air lndia Network. The
return will be to the originating station. lt will be considered one passage.
(xviii) ln case of employees who join Air lndia from any government department, either Central
or other Government organisations or Public Sector Undertakings, without a break in service, the
54
period of service rendered by them in their respective parent organisations will also be reckoned
for the purpose of computing the service qualification prescribed for eligibility for grant of post
retirement passages at the applicable scale/grade, provided , however, they have rendered the
service in Air lndia for a minimum period of 5 years as on the date of retirement.
(xx) Retired employee, if fails to vacate company's accommodation allotted to the employee on
termination of license or when advised by the Company, or if found misusing the
accommodation in any manner, his/her passage entitlement will be kept in abeyance immediately
pending any other administrative action as deemed fit by the management.
(xxi) Those employees who are engaged in post retirement employment in any
company/organization agencies of competitive nature as compared to business of Air lndia, will
not be entitled for any passage facilities from Air lndia, till such time they are engaged in the
post retirement employment. Employees who are engaged in post retirement employment in any
company/organisation/ agencies and availing passage facility in any form will not be entitled to
passage facility. The above instructions shall come into force with immediate effect and will
supersede earlier instructions issued in this regard.
55
THINKS LEARNT AND DONE BY ME IN PASSAGE
India Ltd Company for issuing passages and
SAP Software :- It is a software use Air
recording the employee information.
There is a SAP number given to all the employees working in Air India Ltd Company.
PARTS OF PASSAGES:-
I. Issuing RAO (Rebate Authorization Order)
to the employees in order to get the ticket.
II. Issuing ID Cards for the family members of
the employees.
III. Adding the names of the family in SAP and
also deleting the names of same whenever it
is demand for the employees.
IV. Adding the Life Certificate of the
employees.(in case of retired employees)
V. Preparing of ZED Ticket Manually.
56
ZED TICKET
It is a type of legal certificate issued by Air India Ltd.
Company to an individual,that does not object to the
covenants of the certificate.
It was for Visa and other
documents of Passports. (Retired
and working employees)
57
DATA ANALYSIS
AND
DATA INTERPRETATION
58
DATA ANALYSIS AND DATA INTERPRETATION
No of employees Yes No
50 40 10
1
2
Interpretation:-
80% of employees said that they are aware of passages system in their company.
20% of employee said that they are not aware of passages system in their company.
59
Q 2. Are you aware about various uses of passage in your company?
No of employees Yes No
50 45 05
1
2
Interpretation:-
90% of the employees are aware about various uses of passages in their company.
10% of the employees are not aware of various uses of passages in their company.
60
Q 3. Are you aware about different services of passages?
No of employees Yes No
50 35 15
1
2
Interpretation:-
70% of the employees are aware about different services of passages.
30% of the employees are not aware of different services of passages.
61
Q 4.Do you agree that passage services are helpful for the employees in your company?
No of employees Yes No
50 50 00
1
2
Interpretation:-
employees are agree that passage services are helpful for the employees in their
100% of the
company.
62
Q 5. Do you think that more of passage services should be introduced in your company?
1
2
3
4
Interpretation:-
50% of the employees strongly agree to the above statement.
30% of employees agree to the above statement.
10% of the employees are neutral to the above statement.
10% of the employees disagree to the above statement.
63
Q 6.What are the barriers to passage in your company?
50 15 25 10
1
2
3
Interpretation:-
30% of the employees said that time is the barrier to passage in their company.
50% of the employees said that money is the barrier to passage in their company.
said that the non-availability of flight is the barrier to passage
20% of the employees
in their company.
64
Q 7. What are the complaints about passage services?
50 40 5 5
1
2
3
Interpretation:-
80% of the employees said that there should be more of services to be introduced.
10% of the employees said that there is no fast making of RAO.
10% of the employees said that about non-availability of the air India flights.
65
Q-8. Are you satisfied with the services given by Air India?
50 35 10 5 0
1
2
3
4
Interpretation:-
70% of the employees strongly agree to with the above statement.
20% of the employees agree with the above statement.
10% of the employees neutral with the above statement.
66
Q-9. Do you use all your passages given to you?
50 50 00
1
2
Interpretation:-
100% of employees agree with the above statements.
67
Q-10. Are you satisfied by the number of passages given to you?
50 40 5 5 0
1
2
3
Interpretation:-
80% of the employees strongly agree with the above statement.
10% of the employees agree with the above statements.
10 % of the employees neutral with the above statements.
68
FINDINGS
1. Most of the employees (80%) were aware about passage system in their company.
2. Most of the employees (90%) were aware about various uses of passages in
their company.
3. Most of the employees (70%) were aware about different services of passages offered
to them in Air India Company.
4. All the employees (100%) agreed that the passage services are helpful to them.
5. Half of the employees (50%) strongly agreed that the more of passage services should
be introduced in the company.
6. Half of the employees (50%) said that the money is the barrier.
7. Most of the employee (80%) complaint that there should be more of services introduced.
8. Majority of the employees (70%) strongly agreed with the services satisfaction in Air
India.
9. All the employees (100%) use all their passages given to them by the company.
10.Most of the employees (80%) strongly agreed that the number of the passages given to
them are satisfied.
69
RECOMMENDATIONS
Senior Citizens:- There should be a separate
staff for issuing passages for the
senior citizens so that they don’t have to wait .
The employees should be given autonomy in decision making.
Quick service facilities.
70
LIMITATIONS
Time :- The training was of 45 days andit is very less time period to cover all the
dimensions of passage. (Air India Ltd.)
Money :- Any kind of stipend or financial support was not given to me neither by my
university nor byAir India , so managing all the expenses in the city like Delhi was a
major limitation.
they given their
Accuracy :- Some of the respondent were not serious in their answers,
responses in a very casual manner and they were also in very hurry.
There was also a difficultyin survey because some of the employees were not ready and
free to give their views .
71
CONCLUSION
What I concluded from the project was that theory and practical life is something different. We
need to apply that theory in our practical life for better and effective result. I can say it
confidently because there were many of my colleagues who were are working with the
organization from a long time and they are also doing well but what they lack is the act that will
learn in the classroom. The same job that we can do with a greater fineness they are unable to do
because of organized management learning.
72
BIBLIOGRAPHY
http://www.civilaviation.gov.in/sites/default/files/moca_001684.pdf
http://Click.airindia.in
https://en.wikipedia.org/wiki/Air_India_Limited
73
Annexure
QUESTIONNAIRE
Yes
No
3-Are you aware about different services of passage.?
Yes
No
4-Do you agree that passage service is helpful for the employees in your
company?
Yes
No
74
5-Do you think that more of passage services should be introduced in
your company?
Strongly agree
Agree
Neutral
Disagree
6-What are the barriers to passage in your company ?
Time
Money
Non-availibity of flights
7-What are the complaints about passage services?
More of passage services should be introduces
No fast services of making RAO
Air India flight does not
8-Are you satisfied with the services given by Air India.?
Strongly agree
Agree
Neutral
Disagree
75
9-Do you use all your passages given to you ?
Yes
No
Strongly agree
Agree
Neutral
76