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 Establishing the sense of urgency

It is important to Tell stakeholders the blunt truth. A strong message was needed
to be communicated to the employees that they had to work hard to save their
jobs. But because of strurtural and cultural inertia, this sense of urgency as not
communicated to the employees.
 Creating the guiding Coalition:

There was never a mega merger without retrenchment of employees, except in

the case of Air India and Indian Airlines. The whole objective of merger is to
attain synergy and reduce the number of employees. But the government has
reiterated that there will be no retrenchment," says M.S. Balakrishnan, former
director of finance with Indian Airlines.
He suggests that the airline needs to take a few drastic steps and retrench
employees above 55 years old and do away with contract labourers.
Let the leader do the job. “The first and foremost thing required to turn around
Air India is to have a clear and strong mandate from the government to transform
the carrier. “This should be supplemented by re-establishing the leadership team of
Air India by incubating the best private managers who can demonstrate better
capabilities to run an airline."
 Developing a vision and strategy
Air India should also focus on its long-term market positioning, keeping in
mind that it will be stock market listed and engage private capital in future.
The immediate next step would be bringing executives from private
companies in the top management of the airline," said Ringbeck.
 Communicating the change vision
“Strategic leadership is the key element for airline restructuring. This was the case
with several other international airlines. Incubating private management had
worked in several instances. International senior management who know how to
manage commercial operations and fleet development will help an airline to
quickly turnaround,"
The changed vision need to be communicated clearly to all the stakeholders.
 Empowering broad based activities
Lack or faulty initiatives to monetise its assets- one of the primary requirement of
meeting the revenue deficiency led to dip in the company’s fortunes. The audit
noticed that for five out of 12 properties the terms and conditions made it
impossible to monetize. The turnaround plans envisaged that Rs 500 crore will be
earned from monetization of 12 properties but Air India till February 2016 has
marked only six.