Air India may retry cuts in PLI by mid-October

The drama at Air India is far from over.

Even as the airline’s management issued a fresh order on Wednesday evening, holding back performance linked incentive (PLI) cuts, it is expected to once again try and implement a cut by mid-October.

Official sources said on Thursday that the management and civil aviation ministry are discussing implementation of a steep 50% reduction in PLI for all employees and a decision could be taken on October 15.

Thus, the salary for October for all Air India employees may come with only half the incentives.

“The cut has to be done. It is absolutely essential, but when and by how much is being worked out. We have constituted a committee. It will talk to all sections of employees before making its recommendations to the board,” a senior ministry official told DNA.
The issue of incentive cuts, which paralysed the airline for four days, is unlikely to die down in a hurry as on it hinges the very survival of AI.

Sources said unless the cuts are implemented, the airline cannot go to the government with its demand for equity infusion.

In Mumbai, nearly 200 executive pilots demanded that 160 expatriates working with AI and Air India Express on contract basis should be sacked, as they cost the airline over Rs150 crore annually.

According to an SMS sent to the prime minister’s office, the pilots termed the management’s decision to cut their salary as ridiculous.

Pilots claimed the expatriates, who work for 20 days a month, get a fixed salary of $13,000 (Rs6.5 lakh) per month. Apart from that the airline has to bear the cost of transportation, accommodation in five-star hotels and a return ticket to their country of origin every 20 days.