Huge Salary cuts expected in Air India
New Delhi: The government has asked Air India to cut the salaries of its employees, a condition upon which the government will provide financial assistance of Rs. 1200 crores. The GoM (Group of Ministers) , led by finance minister Pranab Mukherjee, was set up to review the troubled airline's revival plan. They have agreed to infuse Rs. 1200 crores after conclusions of salary negotiations with the trade unions.
The loss making airline is seeking an equity infusion of Rs 5000 crores from the government to improve its debt- raising capacity. Government has already provided a temporary financial aid of Rs 800 crores to the airline.
Air India's average salary of employees is 15-20% higher than its private airline counterparts. Pranab Mukherjee wants the airline to bring its salaries in line with the private players in the industry.
Tags: Air India , Government , Equity Infusion , Rs
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