Friday, September 01, 2017

Air India privatisation: Airline puts employee contract renewals on hold

State-run Air India has put the upcoming renewal of employee contracts on hold as the government charts its course for its disinvestment, reports Livemint.

All renewals, except for operational or licensed category have been put on hold, V Hemjadi, director, personnel and finance of the airline told top management in a letter dated August 30.

“All proposals received for the post-retirement engagement of employees and renewals may be kept in abeyance till further orders except for operational/licensed category which has to be put up through personnel department,” the letter said.

The letter is marked to Air India's new chief Rajiv Bansal, who took charge last month, the report said.

Bansal, who has been given a three-month tenure initially, will have to take some tough calls, a source told Mint. Bansal is the additional secretary and financial advisor in the petroleum industry and currently holding additional charge of Air India.

The government, in three months, will decide who will take charge of the airline subsequently, civil aviation secretary Rajiv Choubey had said last month.

In June, the Union Cabinet had given an in-principle nod for disinvestment of the debt-laden Air India and its subsidiaries.