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Air-India mulls VRS for employees

Union Civil Aviation Minister Sharad Yadav on Monday disclosed that the central government was actively considering the proposal for voluntary retirement scheme, or VRS, for the employees of Air-India, which is being divested.

Yadav told newsmen in Thiruvanthapuram that the proposal of VRS was under the consideration of the central government as part of the steps to improve the functioning of the loss-making carrier.

"However, the interests of the employees will be safeguarded,'' he affirmed.

Holding that the procedures for divestment were going on, he said the government was ready to even hand over the management to professional private management though 40 per cent of the shares would be with Air-India.

Supporting the change of guard to private hands as he felt poor management was one of the main reasons for the current affairs, the union minister said the role of the government should be limited to 'governing the institution'.

Of the 26 per cent shares to be offered for global firms, foreign-based Indian companies could also take shares to protect the interests of the nation, he contended.

Disclosing that a new aviation policy was under consideration, he said the government was for open sky policy for civil traffic sector. "However, we have to protect the interests of the huge body like Air-India too,'' he added.

To a question, Yadav firmly denied that there was any plan to

seek foreign investment in Indian Airlines. The minister also stated that there was no future plan for Air-India to enter into alignment with foreign players. "But vacant routes where Air-India

does not operate its flights could be given to them."

Asked how being a socialist he could comply with the divestment plan, Yadav defended the plan saying it was meant to improve the functioning of the institution. "We are not selling it out to the foreign players."

Asserting that there were many problems foxing the sole loss-making institution in the sector, he said the management was not up to the mark. Besides, old-aged fleet and paucity of budgetary support since 1953, insufficient number of aircraft and higher fare due to high fuel rates all contributed to the present mess in Air-India.

The minister disclosed that he was ready with the plan to cut short the number of directors on the Air-India board. "This will be reduced to the maximum possible limit," he said.

Besides, the ministry had already written to the finance minister to sanction Rs 10-billion assistance towards the modernisation and other plans of the sector.

UNI

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