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March 16, 1999

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Cash-strapped Air-India not to cut salaries

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Our Business Correspondent in Bombay

Air-India has denied media reports that it is contemplating salary cuts of up to 40 per cent to overcome its severe financial crunch.

Air-India spokesperson Jitendra Bhargava told Rediff On The NeT that "there is no plan to cut the salary of our workforce".

"It's true that we are looking for ways to come out of the financial crisis. But that does not mean we are planning to cut the salaries of our employees," he added.

Air-India had earlier offered its employees the options of working three days a week and/or taking leave for two years without pay. Several staffers accepted the proposals.

"The scheme has relieved our financial burden considerably. But we are still looking for other ways to come out of the financial crisis," Bhargava said.

Air-India has almost 700 personnel per plane; the global average is 190. In other words, 18,198 employees work for the 26-aircraft airline. British Airways employs 55,296 people for its 249-strong fleet; Air France has 47,343 employees for its 203 aircraft; Singapore Airlines has 12,966 employees for its 75 aircraft; and Cathay Pacific has 15,178 people for its 60 aircraft.

Unlike other airlines, Air-India offers productivity-linked incentives to its staff in spite of the losses. A worker in Air-India gets two cheques a month as against the standard one.

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