Air India to cut employee costs by $100 Million

By siliconindia   |   Monday, 22 June 2009, 23:36 IST   |    11 Comments
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Air India to cut employee costs by $100 Million
Bangalore: Air India, after announcing a delay in salary for its employees, now plans to cut employee costs by $100 million annually, reports Reuters. Air India which is currently facing a liquidity crunch has an employee cost of more than $3000 million. "Besides reduction in wage cost, Air India is also looking at improving productivity of employees, elimination of restrictive work practices and reducing wasteful expenditure," it said in an e-mailed statement to Reuters. Air India's Chairman and Managing Director, Arvind Jadhav has asked senior employees to do without salaries and incentives next month. Although the carrier has not sacked any employee, it has constituted a four-member committee to examine the wage agreements, including flying allowances and productivity-linked incentives. The panel is to submit its report by July 15. Air India has approached the government for funds both through equity and soft loans. Earlier this month India's aviation minister had said that an initial public offering (IPO) of shares in the firm could be considered in the near future.

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