The huge losses the national carrier is suffering have forced it to go in for a massive restructuring exercise and pay cuts. But will that be enough?
The Maharaja is bleeding with losses over Rs 7,000 crore. Air India is in deep financial trouble.
The recent pay cuts are part of its cost cutting exercise but what's ailing Air India?
Experts say high cost of operations, surplus capacity, falling market share overstaffing and a badly managed merger
have landed Air India in rough weather.
However, Air India on its part insists the pilots are complaining without reason, as they are much better paid than their private counterparts.
An Air India executive pilot's basic pay is over Rs 50,000 per month but the pay-linked incentives are over Rs 5 lakh a month, taking the total monthly salary to over Rs 6 lakh. If the pay cut is implemented the salary gets trimmed to over Rs 3 lakh per month.
But even as the war of words between the management and the employees continues, experts say it’s time to find a more long-term solution.
Kapil Kaul, an aviation expert said, “I think eventually the deeper the mess that the Air India is in the government should privatise it if there is a buyer or even to some extent take a closure. But continuing the way Air India is operating right now is not good for the sector and not good for the country.”
But for its 31,000 employees, closing down the airline or privatising it would lead to harsher decisions and a more uncertain future. |
