Nacil to cut incentives bill 70%

National Aviation Company Ltd (Nacil), which runs Air India, aims at reducing its Productivity-Linked Incentive (PLI) payments in the remaining period of this financial year by 70 per cent, from Rs 650 crore to Rs 191 crore. The airline has 30,505 employees and the wage bill is of over Rs 3,100 crore.
The loss-struck airline had also introduced a leave without pay scheme to cut its flab and has got 277 applications. It has accepted 69 and will accept 50 more soon.
However, earlier attempts to cut PLI ran into such stiff resistance that the moves had to be frozen. Yet, there were losses of Rs 7,200 crore on its books by the end of 2008-09 and it has operational losses. Total revenue in the July-September quarter was Rs 3,467 crore in comparison to the total expenditure of Rs 4,246, which includes Rs 542.03 crore as interest income paid to lenders.
The airline has massive cost saving plans during the remaining period of this financial year. It aims at saving Rs 111 crore per annum from rationalisation of menu, bar and cabin servicesof the airplanes and Rs 68 crore annually by renegotiating agreements with cabin crew.
23/10/09 Mihir Mishra/Business Standard

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Categories: NACIL Oct 2009