Thursday, July 16, 2020

Air India has laid off employees working post-retirement to cut costs: CMD Bansal

Air India is working on a plan to cut costs, including reducing staffing costs and thereby the dependence on government largesse, a top executive said on July 16.
"We are trying to increase the topline, and are trying to contain costs," said Chairman and Managing Director Rajiv Bansal, addressing a media conference, along with Civil Aviation Minister Hardeep Singh Puri.
Bansal added that the airline is working on four fronts to reduce costs - reduce debt, cut on lease rentals, trim staffing costs and lessen operating costs.
As part of the bringing down staff costs, Bansal said the airline has laid off employees whose stints were extended after retirement. "We are in talks with pilots, cabin crews and other employee categories," he said.
Earlier this month, the airline's board empowered the CMD to send employees on leave without pay, for up to five years. Furthermore, Moneycontrol learns that the carrier may soon announce another round of pay cuts, which will be much steeper than the first one.

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