Govt committed to turn around AI: Patel

The government will persist with its efforts to turn around Air India (AI) and the pilots stir will not make any difference to the initiative, civil aviation minister Praful Patel said on Wednesday. Speaking to ET Now soon after AI pilots called off their stir, the minister said the national carrier had to take a lot of tough decisions to come out of financial distress. Excerpts:
Is Air India unable to manage its relationship with employees?
I do not think that is the case. The financial health of airlines has come under severe pressure, leading to problems like the one we saw at Air India. The airline has a very high cost structure and it needs to be cut. Reduction in staff cost is one of the many measures being suggested by the airline. Cutting salaries and perks is never a popular decision. This affects employees and makes the management look like a devil. But the moment industry recovers from the financial crisis, things would ease.
Will the committee proposed to look into grievances of executive pilots consider the demands of other employees as well?
The Air India management will consult everybody before taking any final decision. It’s time everybody realises the problem and helps the company improve its financials. The management is under tremendous pressure. The airline has to cut cost and increase revenue. That is a pre-condition for securing government help in terms of additional equity. The government assistance will not come without riders.
Does the current compromise agreement mean that all executive pilots of AI return to work?
I wonder why pilots are agitating. Air India has already kept its earlier order (on cut in allowances) in abeyance and has decided to form a committee which will also include executive pilots to look into the matter. The ball is now in their court.
01/10/09 G Ganapathy Subramaniam & Nirbhay Kumar/Economic Times

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Categories: Air India Domestic Oct 2009, NACIL Oct 2009