The Hindu Business Line : Forego salary, perks for July, AI executives told

Mumbai, June 19 Cash-strapped national carrier Air India has asked more than 150 of its senior executives to forego their salary and incentives for July.

Mr Arvind Jadhav, Air India’s Chairman and Managing Director, in his communication to corporate directors, strategic business unit heads, executive directors and general managers, has said that the top management needs to indicate to all employees in the organisation that every single paisa which can be saved needs to be saved.

The national carrier is said to be losing Rs 14-15 crore every day, largely on the back of low fares combined with low passenger loads.

Air India is seeking Government intervention to the tune of thousands of crores of rupees.

Gesture of solidarity

“As a gesture to ease the liquidity crunch faced by the airline, Mr Jadhav has requested all executives in the level of General Managers and above to voluntarily forego salary and Productivity Linked Incentive (PLI) payable in the month of July 2009,” said a statement issued by the state-owned carrier.

This development comes at a time when AI had, earlier this week, deferred this month’s salary and PLI of its 31,500 employees by 15 days.

Globally too, airline companies are negotiating rough weather, with passenger loads falling and eroding bottom lines.

Earlier this week, British Airways also asked its senior staff to forego July salary.

Air India is working on a financial proposal, where the national carrier is said to be seeking Rs 14,000 crore, including Rs 7,000 crore as a soft loan.

It is also believed to be looking at an increase in equity by the Government, its major shareholder, from the present Rs 145 crore to Rs 5,000 crore.

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