Air India pilot’s strike over – but capitulation on incentive payments will not augur well for long

A four-day strike by Air India executive pilots may have ended (as of 01-Oct-2009) after a compromise was reached between pilots and management regarding a cut in productivity-linked incentives (PLI) payments, but the longer term resolution to this issue will be a crucial test of the government’s resolve to fix the carrier’s core problems. [1191 words]

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This report contains the following subheadings:

• An early equity infusion from Delhi – perhaps or perhaps not
• Star Alliance membership still somewhat distant
• Aug-2009 domestic traffic figures were in positive territory
• The LCC road looks more promising

This report contains the following charts and tables:

• Air India passenger numbers and passenger numbers growth (% change year-on-year): Aug-2008 to Aug-2009
• Air India domestic market share: Aug-2006 to Aug-2009