AI CMD asks employees to put their best forward

New Delhi: Air India CMD Arvind Jadhav on Thursday asked the employees "to put their best forward" to help the national carrier tide over the current financial crisis, a day after the airline's board announced a cut in the performance- linked incentive of its officers and executives.
"As the scope for increasing revenues in the current market senario of low fare, poor yields and surplus capacity was limited, emphasis on cost control was imperative for ensuring the survival of the airline," Jadhav said in an interactive session with the employees in Mumbai.
The session, organised at the Air India building, is seen as an effort by the CMD to inform the employees why the Board has decided to cut up to 50 per cent of their PLIs.
Yesterday, the airline's board had approved a cut of 25 per cent in the PLI of those who are getting Rs 10,000 or less. The maximum cut of 50 per cent was for those who get an incentive of above Rs 2 lakh.
Those who get PLI between Rs 10,001 and Rs 25,000, the cut is 35 per cent, and the reduction is 40 per cent for those who receive between Rs 25,001 and Rs 50,000. Incentive in the bracket of Rs 50,001 to Rs 2 lakhs attract a cut of 45 per cent.
The carrier's losses had gone up to about Rs 7,200 crore in 2008-2009, while it has a debt of Rs 16,000 crore. It has started negotiating with banks and financial institutions to turn its high-cost debt of Rs 10,000-11,000 crore into low- interest loans.
24/09/09 PTI/Economic Times

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Categories: NACIL Sep 2009