NACIL tightens purse-strings further with more cost-cutting

Mumbai: With no equity infusion from the government in sight and the company posting losses to the tune of Rs 2,154 crore in FY'08, the National Aviation Company of India (NACIL) has tightened its purse-strings.
NACIL, the holding company of national airline Air India and erstwhile Indian, has initiated a slew of cost-cutting initiatives, including re-negotiating hotel contracts and capacity redeployment in line with load-factor.
Other initiatives include a review of productivity- linked incentives for Indian staff at overseas stations, rationalisation of various off-line offices and in posting of managers, customer-relation managers and airport managers in and outside of India, among others.
The aviation industry in India continues to be in a difficult position with huge losses being reported by all airlines, NACIL Chairman Raghu Menon said in a circular to the company's employees.
"A number of measures have been initiated by the industry at large to cut costs and enhance revenue, including pay-cuts and retrenchment of staff," the circular said.
15/01/09 PTI/Economic Times

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Categories: NACIL Jan 2009