Saturday, October 17, 2020

Air India facing financial crisis reduces its expenses

New Delhi: Airborne sector has been the most hit due to the global pandemic coronavirus. But the airline, Air India, which is struggling with the economic crisis, has taken a big decision. The airline has reduced its salary expenses by half in the crisis of the Corona pandemic. The salary expenditure of the company till the month of April was 230 crores. Now it is reduced to 120 crores.

An official of the company said that the company has taken several steps to cut salary expenses and these steps will continue till normal functioning. According to officials, the number of employees has been reduced by 15 percent. The pilots' flight allowances have been cut and those who have been working on contracts after retirement have been fired. Due to these, salary expenditure has come down. On behalf of the company, it has been told that the salary expenditure in April was Rs 229.75 crore, which was reduced to just Rs 120 crore in September.

During the Corona period, the airline gave employees the option of going on leave without pay, but most people did not choose this option. The government has a plan to sell Air India. This is why the airline is trying to reduce costs. The company has already reduced the annual cost by Rs 1500 crore.

17/10/20 News Track

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