Air India assured that as domestic and international operations expand to reach the pre-Covid levels and the financial position of the airline improves, the rationalisation of allowances will be reviewed.
Even as the aviation sector goes through a rough phase, the state-run airline Air India has brought good news for its employees. Air India today said that it will not lay off any of its employees due to cost-cutting measures. In a meeting held at the Ministry of Civil Aviation, the Air India Board also came up with a decision that there will be no reduction in the Basic pay, DA, and HRA of any category of employees. In the recent announcement, it was noted that the flying crew will be paid as per the actual number of hours flown. However, it said that the rationalisation of allowances had to be implemented on account of the difficult financial condition of the airline due to the coronavirus pandemic.
But, the airline assured that as domestic and international operations expand to reach the pre-Covid levels and the financial position of Air India improves, the rationalisation of allowances will be reviewed. Recently, media reports suggested that Air India has cut employee allowances by up to 50 per cent, extending the cost-cutting measures in less than a week. The airline also decided to pay the flying allowances to pilots as per the actual flying hours in a month.
Earlier, the airline announced to send many employees on leave without pay for as long as five years. It was also reported that the airline had started the process of identifying employees, based on various factors like efficiency, health, suitability, competence, etc. The aviation sector is going through a phase of turbulence. While the industry was already laden with heavy debt, the grounding of planed due to coronavirus pandemic-led travel restrictions hit the last nail in the coffin. Meanwhile, private airline Indigo has announced to lay off 10 per cent of its employees to keep the operating cost under check.