Air India pilots threaten to go on strike

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shreya sharan

26 September, 2009

'Air India has to save Rs 800 crores a year to get the financial package. Since PLI itself is around Rs 1,500 crores per year, we have reduced it up to 50 percent, so that the company will save around Rs 750 crores a year,'said a source.

AROUND 300 pilots of Air India are threatening to go on strike from Friday (Sept 25) onwards to oppose the decision taken by the Air India Board to slash productivity-linked incentives (PLI). The strike has been proposed by Air India Executive pilots who claim that the terms were not discussed with them before they were enforced.

The cut, applicable to all officers including top management personnel, in various management disciplines, will range from 25 per cent for those getting PLI of Rs 10,000 or less per month and 50 per cent for those receiving PLI or flying related allowances of Rs two lakhs or more per month. The cut for those receiving PLI of Rs 10001 to Rs 25000, Rs 25001 to Rs 50000 and Rs 50001 to Rs two lakhs will be 35, 40 and 45 per cent respectively. The decision will be brought into effect from August 2009. Over 7,000 employees will be affected by this decision.

A representative of the Air India Executive, Capt Bhalla said "The Executive pilots have taken a decision to go on strike because nobody is in a state on mind to work due to the salary cuts. Starting now, we will not work. With a stroke of a pen, the CMD Arvind Jadhav has cut 70 per cent salary for all the Executive pilots with 50 per cent being evident and 20 per cent hidden."

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Air India spokesperson Jitendra Bhargava said, "We have no intimation of any strike by the pilots."

"Air India has to save Rs 800 crores in a year to get the financial package. Since PLI itself amounts to around Rs 1,500 crores per year, we have reduced it by up to 50 percent, so that the company will save around Rs 750 crores a year,"said a source on the Air India Board.

The airline has been running into losses to the tune of Rs 7,200 crores and also has loan liabilities of Rs 16,000 crores with nearly Rs 11,000 crores loan having very high rates. It has annual revenue of about Rs 14,000 crores as opposed to an expense of Rs 19,000 crores.

Air India had come to the rescue of stranded passengers during the Jet Airways strike two weeks ago, but should they go ahead with the proposed strike the consequences will be a lot worse.

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