Monday, May 30, 2011

Cash-strapped Air India cuts flights, employees worry over salaries

New Delhi: Passengers scheduled to fly Air India on both domestic and international routes this peak holiday season would need to check about the status of their flights. With oil companies refusing to give AI more fuel than what it pays for because of huge dues, the debt-hit airline has reduced capacity by about 10-20 % through a mix of cancellations, mergers and reduction of flights till June 15. The further schedule will be drawn depending on how the situation unfolds over coming days.
Apart from passengers, an uncertainty and anxiety has gripped employees of the airline as they are unsure about getting salaries due to AI's poor financial status . A more serious problem is the management's failure to prepare a credible turnaround plan, which will make infusion of funds by the government difficult.
At least five pilots of erstwhile Indian Airlines are learnt to have quit after the strike ended earlier this month. One of the three senior executive pilots— who was sacked along with two other colleagues and six members of Indian Commercial Pilot Association and then taken back following aviation ministry's intervention — has quit.
A leading low-cost carrier is eying dozens of IA's pilots as it has a similar type of fleet and is charting out an expansion plan. "Dozens of pilots have already met that lowcost airline's hiring section and at least four to five go there everyday," said sources . The striking pilots were not paid this month and given the airline's condition, the entire workforce is unsure of what happens next month.
30/05/11 Saurabh Sinha/Economic Times
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