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| Air India Chief says time has come to face moment of truth |
| Press Trust of India / Mumbai Jun 20, 2009, 16:40 IST |
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Crisis-hit Air India Chief Arvind Jadhav today said the delay in paying the staff salary has become necessary as the airline is fighting for survival.
"This is an hour of crisis. This is a fight for survival. The survival of our own airline," Jadhav said in a message to National Aviation Corporation India Limited (NACIL) employees.
The aviation industry is going through turbulent times. Yet, Air India, unlike many other airlines, has not retrenched or laid-off of staff till date, he said.
"Air India has only decided to defer salary and PLI for June only by 15 days and requested senior officials to voluntarily forego July salary."
Jadhav said loans from financial institutions at high interest rates cannot be availed endlessly to meet working capital requirement. "Time has come to face the moment of truth in Air India as well."
Air India has approached the Government for infusion of funds. But, as we have seen in the US, the help comes with conditions attached, Jadhav said.
To tide over the difficult situation, airlines globally have taken harsh and unpleasant decisions, Jadhav said, adding, "we should consider ourself fortunate that we have been insulated from the adverse impact of the economic slowdown so far."
He cautioned employees about the consequences of disinvestment. "We need to be conscious of the impact that disinvestment/privatisation can have on our own lives, should this materialise."
Reeling under the impact of downturn in global economies and record-breaking aviation turbine fuel prices, airlines the world over have resorted to cutting operating costs and minimising losses.
According to the International Air Transport Association (IATA), the global aviation industry is expected to lose about nine billion dollars this year.
The domestic aviation industry, says Centre for Asia Pacific Aviation (CAPA), is likely to incur around $2-billion losses this year.
Two major domestic air-carriers, Kingfisher Airlines and Jet Airways have reduced jobs, slashed salaries, besides pruning capacity.
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