Ailing AI to let staff work for rival airlines

NEW DELHI: In a last-ditch effort to trim flab painlessly, crisis-ridden Air India has allowed its employees to go on leave without pay for two to five years. More importantly, it even allowed employees who opt for this scheme to work for rival airlines or associated businesses with AI management���s permission.

This voluntary scheme is applicable to all employees, except aircraft engineers and pilots, but prohibits them from working for a government organisation or a PSU.

The move follows unions��� opposition to cut salaries or defer payment to the lower rung of employees.

The lower rung of employees represent almost 71% of the airline���s 31,500-strong workforce and account for about 19% of the annual wage bill of Rs 3,100 crore.

The Centre has made it clear to the aviation ministry that AI can get a bailout package only if it reduces flab and cut costs.

"In case of the 71% employees, the maximum all-inclusive monthly salary of a staffer is Rs 25,000. Slashing the amount or deferring payment would have serious impact on their finances. So we suggested several cost-cutting measures to the airline, including the fact that 600-800 employees would be willing to go on leave without pay and would mean substantial savings for the airline," said V J Deka, secretary of Aviation Industry Employees Guild, which represents 7,800 Air India staffers.