Task Force Appointed On A-I Salaries
The government has decided to rationalise emoluments for Air-India employees. The ministry for civil aviation has appointed a task force to recommend measures which include productivity-linked incentives and hourly rate of payment applicable to different categories of employees. The task force is one of the four appointed by the ministry to improve Air-India's performance following a high-level review by the minister for civil aviation Sharad Yadav. The first task force will look at in-flight issues such as aircraft interiors, including personal televisions and audio systems. Yadav has also impressed upon senior officers the need for a definite improvement in Air-India's performance soon, failing which he warned of action, according to an official statement. The second task force will suggest changes in the current system, including security on ground and on board. The third task force will recommend measures to improve ground-handling services provided by the airline for its flights. The minister stressed on the need to revive the airline through early induction of dry-leased aircraft to establish greater connectivity and to ensure further utilisation of the bilateral rights that Air-India enjoys. He also said on a small equity base of Rs 154 crore, and without any fresh infusion of funds by the government, Air-India had achieved a turnover of over Rs 4,200 crore. It had also built a strong asset base which, he said, had enhanced the airline's value . Air-India's performance needs to be viewed in this perspective, he added. It was also disclosed that after having suffered a net loss of Rs 272 crore in 1995-96, the airline has brought down its net loss to Rs 34 crore, while registering an operating profit of Rs 40 crore in 1999-2000. Air-India would have made a net profit of over Rs 250 crore in the last financial year, but for the additional liability of Rs 177 crore on its fuel bill due to the unprecedented hike in oil prices. It also incurred Rs 146 crore on the termination, compensation, arbitration fee and other charges following the cancellation of the wet-lease agreement with Caribjet in September 1996. Meanwhile, the task forces will comprise senior directors and will be asked to initiate immediate action. and submit recommendations within a fixed time-frame of two to four weeks so that the performance of Air-India can be significantly improved in the coming months.