New Delhi: The civil aviation ministry is considering measures such as salary cuts and more economy class seats to trim Air India’s operating cost and improve its financial health.
Ministry sources said there could be a 15 per cent cut in the salaries of employees under licensed category in the new fiscal.
Pilots, engineers and cabin crew fall under the licensed category of employees. An Air India captain gets anywhere between Rs 5.95 lakh and Rs 8.72 lakh per month, besides allowances.
According to ministry officials, the new salary structure does not include productivity-linked incentives. The national carrier plans to save around Rs 260 crore annually through salary cuts alone.
Officials said under the new norms, flying allowance paid to pilots would not be fixed but based on the number of flying hours. However, the airline runs the risk of losing more pilots and engineers if the cuts are implemented.
31/03/13 Telegraph
