No job, wage cuts in Air India: Praful Patel

New Delhi: Air India on Sunday unveiled its new turnaround plan; a plan which seeks to cut the Maharaja's losses and make money for an airline that is struggling to survive. As part of the plan, Air India will enter the low cost carrier segment in the domestic skies and some relief for employees, no more retrenchment or pay cuts says Union Civil Aviation Minister Praful Patel.
"Air India is on a path to recovery," says Patel. A rosy future painted not just by the Aviation Minister, but backed by top India Inc honchos like Anand Mahindra.
The crux of their recovery plan is to get the unions on board, which they did on Sunday. Expand business; in particular, begin a domestic low-cost wing. And do this without cutting jobs or salaries, even though Air India has among the highest number of employee per aircraft.
"No job cuts, no wage cuts," says Civil Aviation minister Praful Patel.
This, despite a loss of Rs 8000 crore in the last three years, which is likely to shoot up to Rs 13000 crore this year.
If it was a private airline, a promoter may have cut jobs and wages, but as the national airline, the rules are different.
"Air India's mission is well articulated. Be a leader in Indian aviation and India's ambassador to the world," says Anand Mahindra, an independent director of Air India.
25/07/10 NDTV.com

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Categories: NACIL Jul 2010