Air India unveils further cost-cutting measures

In an effort to cut costs and streamline operations, national carrier Air India had issued a further set of guidelines for its employees, effective January 1. The earlier guidelines were issued in August last year.
Some of the first measures stated in a 25-point circular sent to senior officers include - payment on fuel reimbursement strictly through “vouchers and not self certification”, abolition of children’s education allowance to India-based officers abroad, reduction in cost of furnishing of residences given to Executive Directors and General Managers by half and 25 per cent respectively, restriction on foreign travel by officers and requirement of prior approval in cases where they exceed four visits in a year.
Other important steps include collection of monthly transport charges from employees availing themselves of that facility, cancellation of subsidised meals in canteens throughout the airline’s network and re-negotiation of hotel contracts.
While transport charges for staff will be Rs 65 per month, for officers it will be Rs 150 per month. Circular states “There is immediate need to rationalise the transport subsidy having regard to the increase in the cost of operation of the transport fleet as well as hike in wage structure of the employees.”
13/01/09 Business Line/Moneycontrol

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Categories: NACIL Jan 2009