AI may freeze salary hikes of employees

Mumbai: Cash-strapped Air India Ltd is considering a freeze on salary hikes and additional allowances to employees until the process of its merger with Indian Airlines is completed.
Arvind Jadhav, chairman and managing director of Air India, the company formed by the merger of the two state-owned carriers, asked workers in a letter to cooperate in the “gigantic task of turning around Air India”.
The national flag carrier has accumulated a loss of at least Rs. 13,300 crore since the merger began in 2007. It is implementing a financial turnaround plan prepared by Deloitte Consulting India Pvt. Ltd.
“I wonder whether we can begin by putting a cap on our (employees) cost. Can we say freeze our compensation—at least till the process of integration and merger get completed/implemented?” Jadhav wrote in a letter dated 25 March. Jadhav pointed out the airline is handling 320 flights, carrying 72,500 passengers and generating Rs. 36 crore a day. Mint has reviewed a copy of the letter.
29/03/11 P.R. Sanjai/Live Mint

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Categories: Air India Mar 2011