FinMin pulls up cash-strapped AI on revised wage agreement

Mumbai: Denying reports that the revised wage agreement with its executive cabin crew staff will cost Air India’s exchequer a massive Rs 170 crore annually, the carrier on Wednesday morning issued a statement that the revised salary would cost an additional Rs 2 crore only.
But even before the statement was issued, reliable sources told The Indian Express that top officials from the finance ministry called Air India on Wednesday morning itself and expressed their displeasure. It is learnt that the officials came down heavily on the airline’s top brass on the reported largesse in the form of revised salaries.
At a time when the national carrier is bleeding money due to operating losses amounting to Rs 4,500 crore on top of a debt of Rs 17,000 crore, sources said that a top official from the finance ministry was alarmed as to how the carrier can go ahead with such an agreement when it is asking the government for capital infusion.
The draft office order — a copy of which is with The Indian Express — through which Tuesday’s salary revision took place is now up for Board approval. The order clearly shows that the salary of Grade 29 executives has gone up from Rs 1,03, 425 to Rs 2,16,608.
05/06/09 Shashank Shekhar/Indian Express

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Categories: NACIL Jun 2009