Business Standard / New Delhi Sep 28, 2009, 00:44 IST
This refers to ‘AI bosses can’t look beyond cutting pay, complain engineers’, September 23. It has been stated in the report that the “entire and misplaced focus of the management was on slashing pay in the name of a turnaround plan” and “the focus of the management has been only on slashing employees’ wages. There are many options they can look at to cut costs”.
These statements are incorrect. Air India has, in recent months, initiated several cost- control measures across the board. As the loss anticipated for this year is huge, measures have been initiated to reduce expenditure in various areas:
Saving in procurement of material and control of inventories
Saving on fuel
Saving in landing/navigation charges
Reduction in interest payment on aircraft loans
Reduction in interest of loans availed for working capital
Reduction in lease rental costs
Rationalisation of routes
Closure of offline offices
Curtailment of foreign travel by employees
Recall of India-based officers from abroad
Details of these initiatives have been shared with all unions on more than one occasion. It is well known that the global aviation industry has hit all airlines, including Air India. The drop in passenger traffic due to economic recession. low fares and poor yields in a market having surplus capacity, have led to a serious financial crisis. In many airlines in India and abroad, employees have either lost their jobs or suffered huge pay cuts because the financial crisis has been very severe and the airlines have had to take hard measures for survival.
Jitender Bhargava
Executive Director (Corporate Communications)
Air India Mumbai
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