New Delhi: Air India should list itself in a stock market and reduce employees, a government-appointed committee formed to advise on the ailing national carrier's integration with a sister airline said.
Air India was merged in 2007 with state-run Indian Airlines, which operated mostly domestic flights, but human resource issues never allowed the merger to take off, leading to a still-ongoing massive pilots' strike.
"It is important for a PSU (public sector utility) like Air India to formulate a Voluntary Retirement Scheme(VRS) for its employees so that excess man-power does not unduly increase the wage bill and depress productivity," the committee, headed by former apex court judge D.M. Dharmadhikari, said.
The committee also recommended compensating retiring employees significantly through an employees stock option plan, for which the airline needs to value its assets within and outside the country, and decide on a stake to float in a stock market.
22/06/12 Reuters/Business Standard
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