| Author | Tréguer, Annaïg |
| Call Number | AIT RSPR no. SM-01-55 |
| Subject(s) | Airlines--Labor unions--India
Airlines--Labor unions--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-01-55 |
| Abstract | Nowadays globalization cannot be absent from any economic decision either in developed
or developing countries. The new trend is to be integrated, nearly at any cost (since international
financial institutions are here to back up those major changes) and the Asian continent is no
exception. How to better express this globalization trend than taking the example of the airlines
industry which symbolizes the increasing necessity for goods as well as people to move as fast as
possible through a convenient and safe means of transportation. The purpose of this Research
will, then, be to analyze the context of such an economic decision as the airline privatization, and
especially analyze whether the Industrial Relations System still has a meaning in this context.
More precisely the labour unions and whether their opinion is taken into consideration or not,
will be a proof of the situation.
In India after the nationalizations implemented by Nehru in the 1950s, there is a change in
the economic trend in order to adapt to the new global rules. Air India is one of the State Owned
Enterprises (SOEs) who has been selected in the national privatization plan. After many years of
an absence of profits or even deficits, it is high time for the Indian government to find new
investors, if necessary from abroad, in order to finance the modernization of Air India fleet which
is critical to tum around the financial situation of the national carrier and as a result improve its
competitiveness.
Concerning Thailand, the first step of privatization of Thai Airways International
occurred in 1992 when 7% was sold as Public Offering. However, since the Asian crisis of July
1997, and the loans Thailand had to be granted by international financial institutions, time has
come to pay back the money lent. The status of Thai Airways will not suddenly move from a
State Owned Enterprise to a private company since the disinvestment will concern only 30% of
the national carrier, contrary to the Indian case.
After having collected the data, through in-depth interviews with labour unions as well as
managers involved in the privatization process, the role of labour unions appeared to be rather
insignificant compared to the first expectations. Since the privatization is only at its beginning,
the decision of disinvestment was taken without the consent either from the labour unions or even
the management of the national carriers.
However the safeguards demanded by the labour unions are numerous and the fears are high
about the negative impact of the privatization on working conditions and benefits of the
employees. The social dialogue is the solution to reach a compromise between the interest of
each party of the industrial relations system. |
| Year | 2001 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-01-55 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sununta Siengthai; |
| Examination Committee(s) | Tang, John C.S. ;Broustail, Frarn;ois Joel; |
| Scholarship Donor(s) | European Union Scholarship
(PTS Program) ; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001 |
