Air India’s downfall was reportedly due to poor management, neglect of the government and competition from private companies. Gradually its condition became so bad that it did not have money to continue the essential services. Eventually the government sold it to the Tata group.
Air India’s fortunes have changed as soon as the Tata group comes into its hands, now the employees’ fortunes have also started changing. In order to make the loss-making airline profitable, the management is not only changing the way it works, but all efforts are also being made to restore the confidence of the employees. Under these efforts, preparations are going on to provide new facilities to the employees.
Air India was once the largest and most prestigious airline of the country. But its condition reportedly deteriorated due to poor management, government red tape and competition from private airlines. The condition of the airline became so bad that it did not have money even for essential services. Due to declining income and increasing debt, there was a situation of retrenchment of employees.
ESOPs will be
available Now the Tata group is trying to bring back the old reputation of the airline. For this, winning the trust of the employees is most important. Once the employees of the airline, whose job was hanging on the sword, are now going to get a chance to become the owner of the company.
Air India is going to provide the facility of ESOPs to its employees. This will not only improve the working efficiency of the company, but will also improve the operation of the company. However, it has not been decided yet as to what level of employees will be given the facility of ESOPs.
What is
ESOP ESOPs ie Employee Stock Options (ESOPs). Under this, the employee is given an opportunity to gradually buy the shares of the company. It is in a way a reward for being associated with the company. The price of the shares offered under this is much less than the market price.
With this, Air India will become the second company in the Tata group to offer ESOPs. In 2018, the group’s automobile company Tata Motors started offering Esops facility to its employees. ESOPs was first started in India by IT company Infosys.
