AI may announce 50% incentive cut
The Air India board, keeping with the government view that the airline should take more steps to reduce expenditure and increase revenue, is likely to announce an incentive cut on Wednesday.
By Manju V, TNN |
MUMBAI: The Air India board, keeping with the government view that the airline should take more steps to reduce expenditure and increase revenue, is likely to announce an incentive cut on Wednesday.
���The board may make an announcement of a 50% cut in the productivity-linked incentives (PLI) for the executive staff (senior manager upwards, officials who are not unionised),������ said an Air India official. Last month, the board proposed a 50% reduction in PLI and flying allowance paid to the crew, but the unions objected to it.
In their bid to slash salaries, the airline has even asked the government for equity infusion and soft loan. Finance minister Pranab Mukherjee has reportedly reviewed its turnaround proposal and iterated the stand taken by the government that the airline could not expect a bail-out package without making costcuts and improving revenue earnings.
���The board may make an announcement of a 50% cut in the productivity-linked incentives (PLI) for the executive staff (senior manager upwards, officials who are not unionised),������ said an Air India official. Last month, the board proposed a 50% reduction in PLI and flying allowance paid to the crew, but the unions objected to it.
In their bid to slash salaries, the airline has even asked the government for equity infusion and soft loan. Finance minister Pranab Mukherjee has reportedly reviewed its turnaround proposal and iterated the stand taken by the government that the airline could not expect a bail-out package without making costcuts and improving revenue earnings.
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