No retrenchment in Air India: Praful Patel

Chennai: Civil Minister Praful Patel on Monday ruled out retrenchment among employees in public sector Air India and blamed rising fuel prices as the reason behind the present crisis in the aviation sector.
"I have categorically denied that there will be any retrenchment in Air India," he told reporters here after the inauguration of the Rs 1808-crore Chennai airport expansion and modernisation project. He, however, declined to comment on the issue in the private sector.
Jet Airways had last week decided to lay off about 1900 of its employees but withdrew the move promptly. The Kingfisher Airlines has announced a salary cut of its trainee pilots as part of cost-cutting measures.
Patel said prices of Aviation Turbine Fuel (ATF) have gone out of control and called for "rationalisation" of the same to manage the present crisis.
The rising prices have put an extra burden of Rs.7,000 to Rs 8,000 crore on the airlines operators who have in turn passed on the burden to passengers, he said and stressed the need for states to reduce the sales tax levied on ATF.He also demanded a cut in other taxes, including customs and excise.
He also said that unless a permanent solution was found, fears of retrenchment "will hang in the air."
21/10/08 PTI/Economic Times

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Categories: NACIL Oct 2008