Air India mulling slew of cost-control measures

Mumbai: National air-carrier, Air India, is contemplating a slew of cost-cutting measures aimed at overcoming mounting losses due to high operating costs.
Several austerity measures are believed to have been discussed by the management in a recently-held Board meeting with a view to cutting losses, now exarberated by surging international crude prices. Belt-tightening measures believed to have been discussed include a 25 per cent cut in wages and variable productivity link incentives (PLI), a 25 per cent cut in fuel reimbursement, driver salary and car maintenance, discontinuation of clothing allowance and a 25 per cent cut in the sales promotion budget.
In its presentation before the Board, Air India's Finance Department has also suggested discontinuation of payment to the Indira Gandhi Rashtriya Udaan Academy (IGRUA) as part of controlling costs.
10/06/08 Press Trust of India/Business Standard

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Categories: NACIL Jun 2008