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Financial crisis-hit Air India mulls LWP to 15,000 employees?

Updated on Thursday, October 16, 2008, 00:00

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Zeenews Bureau

Hyderabad, Oct 16: State-owned Air India (AI) seems to have failed to bear the heat of the financial crisis that has hit the aviation sector, as it announced on Thursday to ponder over a plan to give 3-5 years Leave Without Pay (LWP) to about 15,000 of its staff. However, Civil Aviation Minister Praful Patel has declined any such plans.

"We are planning to offer leave without pay for three to five years. We can consider it for about 15,000 employees," Air India CMD Raghu Menon said.

He, however, said those who take up the offer to go on leave would be taken back if they desire so at the same seniority and last drawn pay.

However, Patel said the Air India is neither mulling job cut nor sending employees on leave.

"No...Air India is not going to have any job cuts. Certainly it (the aviation crisis) will affect the growth plans, it will affect the future employment opportunities which would have come the way of Air India in case the aviation industry was in a much better financial health," Patel said.

"But as of now I do not have the luxury to say beyond the fact that those who are working for the Air India shall continue to do so and we shall not have any issue of people being laid off," he said.

Menon's statement comes at a time when the country's leading private carrier Jet Airways has laid off 1,900 jobs due to the financial crunch in the aviation sector worsens.

An official of Air India, who did not want to be named, said that a proposal for leave without pay could be brought before the company's Board soon.

The 77-year-old state carrier, which initiated a fleet renewal programme three years ago and merged with its sister airline Indian last year, has proposed infusion of Rs 1,000-1,500 crore of equity capital.

It is also looking at soft loans of Rs 1,000 crore from government that can be repaid over a period of time.

According to industry experts, the coming together of Jet and Kingfisher could further mount the problems for Air India.

Menon, however, disagreed with the views and said it would only lead to a reduction in competition.

"There are a number of routes and there are a number of airlines. All the airlines will be evenly poised in the market," he said.

Bureau Report

even if you reduce salaries of all employees of airindia to zero for one year,problem will not solve ,if we do not make correction on problem ,we can never solve it.

we should list down areas such as what to do of excess aircraft...lease them out/save on wastage of food onboard...../outsource all jobs at foreign stations to other locals only...no indian to be posted out of india..looting is to be stopped.....like this so many points can help.

S JAIN - UP

Yogic Exercise for AIR INDIA. All Board members to Sit in correct Posture in the Board room and allow free air to come in. 2. Consider all members are together (Tought process) 3. Start Anulom and Vilom breathing exercise. While exhaling through all junk aircrafts like B747 which is choking the lungs, Think that when it is out it has taken along with it the jumbo load of anxiety. 3. Now inhale while inhaling think of Passengers boarding B777 smilingly. Initially try the above exercise in unison for just one hour. It is very important to maintain time ie fixed time and no absenting members of the group and it has to be daily. You willstart feeling better from the 1st day itself. Keep your mind detached from Maya and Moha towards your belongings they are not running away. Initially do this much and once it has been mastered which will require 30days then there will be another aasan (posture). Keep in touch.

Capt.S.Choudhary - Mumbai

India has heard layoff word first time and peoples are loosing jobs but trust me there is lot to come and prepared for it.This is not just India but it WORLD WIDE problem,it is unfourtunate but it is true.

Tiwari - USA

Certainly aviation sector going through a bad patch is a global phenomenon. But what I am surprised is that CMD of Air India Mr Raghu Menon goes on record to state that 15,000 employees are likely to be sent on leave and Civil Aviation Minister Praful Patel is unaware of the plans. Such a coordination or communication gap between aviation minister and his subordinates is shameful. It seems Air India management is taking decisions bypassing Mr Patel. Wake up call for the Minister.

Rahul Tawade - Mumbai

"jago india jago"

mohd saheb kadir sawda - dubai

Raj Thakre jee, bachao inko bhee. Bade chaudhry banthe hain. Business kee akl bhee hai ? What Jet or Air india or any other establishment for that matter should do in this recession. But no . you are only bothered about your votes. Nobody is happy with this retrenchment, In fact there should be a national policy for such evantualities. The fact is in such crises, you cannot stop retrenchments, be these the temporary or the permanant employees.

Vijay - Delhi

Hi rinku.why dont u do one thing .come to India and take care of all these things.Sitting in hongkong and saying all this is very easy.Come to India and see here what is happening in global market.ok just do one thing why dont u pay ur one day salary to poor people in India .not thousands or even hundreds people get food but altealt 10 or 20 will defenetioly get a food to eat.Bluddy non reliable Indian.East or West India is west.

sanjay - delhi

This is a Global Crisis no body should be blamed .everybody including the staff should take this as a challenge and More over the people in the Marketing and sales department should strive to make Maximum Sales Talk Nicely to Clients .The Matreials Management Department should see that No Money is lost on Inventory etc etc .Then any Company can come up from Losses

Deshpremi - Mumbai

THIS IS VERY BAD THING HAPPNING IN INDIA ,WHY OUR GOVERMENT IS SLEEPING , THEY HAVE WAKE UP NOW , OTHERWISE VERY SOON WE WILL SEE RESULT OF THIS ,ATLEAST THEY HAVE TO TAKE SOME USEFUL STEP TO AVOIDE THIS THING,IF EVERYDAY MORE THE 15000 PEOPLE LOST THERE JOB THE UNEMPLOYMENT WILL INCREASE DOUBLE WITH IN 1 WEEK.

RINKU - HONG KONG

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