Air India suffers losses over Rs 7K crore

New Delhi: The huge losses the national carrier is suffering have forced it to go in for a massive restructuring exercise and pay cuts. But will that be enough?
The Maharaja is bleeding with losses over Rs 7,000 crore. Air India is in deep financial trouble.
The recent pay cuts are part of its cost cutting exercise but what's ailing Air India?
Experts say high cost of operations, surplus capacity, falling market share overstaffing and a badly managed merger have landed Air India in rough weather.
However, Air India on its part insists the pilots are complaining without reason, as they are much better paid than their private counterparts.
An Air India executive pilot's basic pay is over Rs 50,000 per month but the pay-linked incentives are over Rs 5 lakh a month, taking the total monthly salary to over Rs 6 lakh. If the pay cut is implemented the salary gets trimmed to over Rs 3 lakh per month.
But even as the war of words between the management and the employees continues, experts say it’s time to find a more long-term solution.
29/09/09 Shweta Rajpal Kohli/NDTV

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Categories: NACIL Sep 2009