Wednesday, July 19, 2017

Air India sell-off: Not offering voluntary retirement to staffers, says CMD

National passenger carrier Air India's Chairman and Managing Director Ashwani Lohani on Tuesday said that the airline has no plans to offer a VRS (voluntary retirement scheme) to its employees.

"There is no such proposal for VRS," Lohani said.

New Delhi: Earlier, some reports had mentioned that before the airline's divestment, its management has been asked by the government to draw up a proposal to offer voluntary buyouts to its employees.

"Air India and its subsidiaries have nearly 20,000 employees. Among them, Air India has only 11,500 employees. Air India management has not offered their employees voluntary buyouts," said Dhananjay Kumar, Spokesperson, Air India.

The development comes after the June 28 decision of the Union cabinet which gave its in-principle approval for divestment of AI, whose debt has mounted to Rs 50,000 crore besides huge losses.
The Union cabinet's decision on Air India came after NITI Aayog in a recent report to the Civil Aviation Ministry recommended strategic disinvestment in the loss-making Air India.

At present, the national passenger carrier has a debt burden of more than Rs 50,000 crore.
19/07/17 IANS/Business Standard