NACIL defers plans to hike salary

New Delhi: The board of National Aviation Company of India (NACIL) — the airlines company created by merging public sector airlines Air India and Indian Airlines last year — has deferred a proposal to increase the salaries of executive cabin crew that worked for Air India and pilots that worked for Indian Airlines in their pre-merged avatars.
The decision to increase salaries was postponed as the committee of secretaries (CoS), which is looking at a proposal made by NACIL for financial help, is scheduled to review the company’s plan to cut costs and enhance revenue on August 29. CoS had said that the financial assistance to be given by the government has to be matched by the airlines through cost-cutting. Air India earlier said it planned to cut wage bill by Rs 500 crore annually.
Nacil did not want to send out the wrong signals to CoS by taking any decision on increasing salaries just ahead of the meeting, an official who attended the board meeting said on condition of anonymity.
To show its seriousness at cost-cutting, Nacil may actually take a decision on revising the productivity-linked incentives (PLI) of its 31,000 employees downwards on Tuesday, the official said.
25/08/09 Nirbhay Kumar/Economic Times

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Categories: NACIL Aug 2009