With Air India on a course-correction mode, it is doing everything it can to improve customer-facing operations and the on-time performance of its flights. Now, the airline has voiced its disappointment due to the inefficiency of its ground-handling service provider, which is still under government ownership.
Delays due to lax service
Six months into the job, the Tata Group is discovering the many layers of the problems that are troubling Air India. The latest to be identified is the sub-par ground handling services provided by Air India Airport Services Limited (AIASL) to its flights.
Rajesh Dogra, who is Air India's Head of Customer Experience and Ground Handling Operations, has sent a letter to AIASL Chairman and Managing Director (CMD) Vikram Dev Dutt, explaining that the carrier will be forced to either discontinue or scale down AIASL ground handling ops for AI flights and look for arrangements.
Dogra stated,
“While we are working towards exponentially improving our customer experience, AIASL is unable to match the requisite pace of change and we continue to face several challenges at the airports managed by AIASL as ground handling services provide.”
Flight delays have deteriorated in the last few months compared to the previous year. The number of flight delays due to ground handling in December 2021 and January 2022 was 284 and 89, respectively. The months of February, March, April, and May have seen a steady climb in ground-handling induced delays to 271, 386, 520, and 620, respectively.
Several issues
The key issues identified in the letter sent to AIASL are:
- Increased ground handling delays at AIASL
- Perennial shortage of staffing
- Lack of systemic training interventions for staff
- Discourteous behavior with customers
- Old, inadequate, and dysfunctional ground handling equipment due to ineffective maintenance
- Staff not in uniform or wearing jaded uniform
- Baggage mishandling
- Lack of effective governance by AIASL
The communication highlighted that 11.9% of the total 5,203 flights in May got delayed due to ground handling-related inefficiencies. Dogra added that the workforce shortage has also extended to terminal and ramp operations, which has impacted check-in, boarding, and baggage handling processes almost every day.
Government controlled
When Air India was offered to the Tatas, several of the airline's subsidiaries remained with Air India Assets Holding Ltd (AIAHL) – a special purpose vehicle set up in 2019 for holding non-core assets and debt of Air India. AIASL was one of them.
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The government is also planning to sell the ground handling firm, with officials telling Business Today TV in April that the preliminary information memorandum (PIM) would be issued soon and will be followed up by inviting bidders to express interest in the firm. The idea is to complete the sale by March 2023.
Here's hoping that AI resolves the issues with AIASL without resorting to discontinuing its services.
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Source: Business Today