The Descent of Air India by Bhargava Jitender

Author:Bhargava, Jitender [Bhargava, Jitender]
Language: eng
Format: mobi, epub
Publisher: Jitender Bhargava
Published: 2014-03-18T16:00:00+00:00

BLIND EYE

It did not need an investigator to bring out the aberrations mentioned above; a glance through the airline’s 2006–07 annual report would have sufficed. Interestingly, the airline’s annual reports are approved by the board members before being sent to the Ministry of Civil Aviation, which subsequently places it on the floor of the Parliament. The question is—how did the numerous transgressions in accounting procedures escape the attention of so many people in different positions of authority? It was also odd that neither the board nor the ministry stepped in and asked for an explanation for the accounting anomalies. The chairman should have been questioned about the manner in which revenue estimates were being resized to suit the need of the hour, and the relevant departmental heads should have been pulled up for coming up with unrealistic projections to justify or conceal irrational expenses. Instead, the chairman and the board became active collaborators to create a world of make-believe.

On the one hand, revenue figures were being exaggerated and costs understated to show lower losses, and on the other hand, there was talk and promises of expansion and growth. The period saw not only the launch of the ambitious aircraft acquisition programme but also numerous other expensive ventures. I wonder what it was that prompted Mr Thulasidas to undertake projects of this magnitude which the airline could ill afford. And even if he was acting under pressure from the ministry, should he not have consulted the rest of the airline and voiced his apprehensions?

Mr Thulasidas would also tend to deal directly with the media on behalf of Air India. Journalists met him often and on several occasions, instead of seeking greater clarity on the way the airline was managing its expenses, unquestioningly reported what he said. An example of the manner in which the media reported on the airline is best illustrated in the way an article was written on Air India’s plans to buy a Serbian airline called Jat Airways. On 31 May 2007, The Times of India published a report that quoted a ‘source’ as saying, ‘Because of the merger (Indian Airlines and Air India), the matter (acquisition of Jat Airways, a Serbian carrier) was on the back burner for a while. But now, we are actively working on it.’

Where was the money to buy the Serbian airline? More importantly, why was a potential acquisition plan revealed to the media when such discussions are conventionally not made public till the deal is sealed? It belied all logic, unless the intent was to create a perception that all was well with Air India and to boost the image of the chairman. I had been transferred out of the public relations department by then for reasons never clearly stated, and hence, I can only surmise that it must have been due to my unwillingness to publicise the chairman’s initiatives. This was also perhaps why Mr Thulasidas felt the need to appoint an external public relations agency at the cost of 1.75 lakh a month even though we had a full-fledged department within the airline.

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