"The IA board did not take up the issue of retirement age in the last meeting. The board has, instead, placed on record the progress made on the plan to purchase 50-seater aircraft," said an airline top brass. IA is unlikely to rush through the retirement age issue as the employees are not entirely open to the idea. This is in contrast to the situation in AI where the unions were instrumental in bringing about a change.

Air Corporation Employees Union, the largest employees union in IA, has already protested against the move to cut the retirement age. It has told the IA management that this will lead to discrimination as the government's notification with regard to raisingthe age limit from 58 to 60 years was binding on all public sector undertakings.

The reduction will also pose a serious threat to the operations of the airline with the retirement of many senior executives and employees, the union has said. It has also pointed out that the decision may attract the provisions of the Industrial Disputes Act as the issues pertaining to the wages and service conditions are pending for abjudication at the Mumbai National Industries Tribunal.

IA sources said the union's opposition may force the management to seek legal opinion before actually implementing the plan. They were, however, tightlipped about the probable course of action in the absence of a consensus.

If IA does lower the retirement age, it could retrench at least 1,000 employees because a voluntary retirement scheme is also being mooted for implementation in the current fiscal.

The national carrier has, of late, been pursuing an aggressive strategy to take on competition from private airlines. It has introduceda slew of innovative schemes to regain market share.