|
The airline is passing through a severe financial crisis, losing almost Rs 15 crore a day.
A four-member committee has been constituted to go through all the wage agreements negotiated so far. It will seek to achieve the three-pronged objective of improving productivity of employees, eliminating restrictive work practices, and reducing wasteful expenditure. The committee includes members from the human resources and finance departments.
The committee has been asked to submit its report by July 15 to the Chairman and Managing Director who would be free to implement the decisions without seeking approval of the Board of Directors or the Ministry of Civil Aviation.
The airline has already initiated steps to cut its costs. This includes delaying the payment of June salaries by 15 days to all its 31,500 employees. In addition, officials above the rank of General Manager have been requested to voluntarily give up their July salary.
The other measures being considered include deferring the delivery of some of the 62 Boeing and Airbus aircraft that the airline is still to take delivery and cutting back on loss making routes. The airline incurs an expenditure of close to Rs 9,000 crore on interest on these deliveries alone.
|