Air India relents, allows staff to change seats from economy

New Delhi: As a peace offering to its warring employees, the Air India management has reversed a May order that forced employees all the way up to the chairman to fly economy class.
The embattled national carrier, operated by National Aviation Co. of India Ltd, is weighed down by losses of Rs5,548 crore in 2008-09 and a staggering Rs15,241 crore of debt. The state-owned carrier is expected to receive an initial Rs400 crore in equity infusion from the government if it cuts costs. In one of its early cost-cutting moves, the airline barred business and first-class travel for its senior management staff, provoking an employee backlash.
On 27 November, Air India executive director (headquarters) V. Srikrishna issued a circular stating that employees from deputy general manager or higher would be allowed to travel at least business class on duty and on vacation, but with caveats.
Till May, for example, senior executives at the level of director or higher were allowed to fly first class, but can now travel only business. Their business-class travel has also been capped to not more than 25% of the total business class seats. For personal travel, seats would be allotted subject to availability.
Only Air India’s chairman and managing director would be allowed to fly first class both on duty and on personal travel. Retired chairmen of Air India and the erstwhile Indian Airlines, their immediate family members, and retired officials of the rank of deputy general managers or higher can travel only business class, subject to availability.
30/11/09 Tarun Shukla/Live Mint

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Categories: NACIL Dec 2009