Outlook for Air India's turnaround clouded by HR issues

Air India continues to lurch from one crisis to the next. The airline suffers from low productivity, high costs, poor staff morale, significant unresolved human resource issues and an unviable business model. There appears to be a lack of accountability within management and at the level of the Government. After years of neglect the approach to turning around the airline continues to lack both decisiveness and a willingness to take difficult decisions, in the absence of which no meaningful recovery can occur. In this article we review recent developments at Air India and look ahead to the carrier's prospects in FY2012/13.

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