AI staff will be redeployed, size to be cut by half

New Delhi: The government is learnt to have decided on a large scale redeployment of Air India (AI) staff to its strategic business units (SBUs), cutting the airline’s current 33,000 strength by nearly 50 per cent.
This will bring down AI’s employees-per-aircraft ratio from a highly uncompetitive 230:1 to a globally accepted 100-150:1.
Minutes of Civil Aviation Minister Praful Patel meeting at the Prime Minister’s Office last month, available with The Indian Express, indicate that the decision was reached after detailed discussions on the carrier’s mounting losses and a presentation by Civil Aviation Secretary M Nambiar.
Top government sources told The Express that around 15,000 employees will be absorbed in the SBUs, which the government expects will become independent profit centres once they are operational.
“The two Maintenance, Repair and Overhaul (MRO) joint ventures with Boeing and Airbus will absorb around 5,000-6,000 employees. The ground handling joint venture with Singapore firm SATS is expected to absorb another 8,000-9,000. These SBUs will be hived off to become independent profit centres,” said a senior official.
For speedy operationalisation of airline’s subsidiary businesses, AI plans to re-designate an existing management position as Executive Director of Corporate Strategy.
AI CMD Arvind Jadhav has asked for finalization of employees service rules and regulations and performance-related standard operating procedures in order to fast-track the integration of the old Air India and Indian Airlines staff.
09/07/09 Smita Aggarwal/Indian Express

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Categories: NACIL Jul 2009