Air India May Cut Salaries By 5% Amid Coronavirus Concerns
An Air India Boeing Co. 777 aircraft is displayed at the India Aviation 2010 conference in Hyderabad, India. (Photographer: Namas Bhojani/Bloomberg)

Air India May Cut Salaries By 5% Amid Coronavirus Concerns

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Government-owned Air India may cut the salaries of employees by 5 percent amid its growing financial woes particularly in the wake of the coronavirus pandemic, which has nearly grounded its entire international operations, sources said.

The reduction will be across the board, they say. The loss-making airline, which is in the process of a second attempt at privatisation after failing to get a single buyer nearly two years ago, has already taken some steps such as reduced flying allowances to cabin crew besides withdrawing entertainment allowance to executive pilots, among others.

Air India is considering a 5 percent pay cut to its employees as it faces a huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations except for the U.S., Canada, and a few other markets, to the ground," a source told PTI.

According to another source, privy to the development, the carrier has also decided to take off from flying its over 100 reemployed pilots on contract as part of various cost-cutting measures. Air India spokesperson was not available for comments. On Tuesday, the airline issued a circular stating that it is withdrawing entertainment allowance to executive pilots. It also said that all cabin crew including on contract rostered for flying duties from April 1 will have revised layover allowance of $100 for 30 hours and after that $4 for every additional hour.

Also read: IndiGo, Vistara May Ground Jets as Virus Cases Jump in India

In case of ultra long haul flights, it has been revised to $140 for 30 hours and after that $6 for every additional hour of flight. The fuel allowance is also being cut by 10 percent for six months, effective April 1, it said. The airline said such measures are being taken keeping in view the financial position of the company in the wake of the recent global development.'

This situation requires cost-cutting measures to the extent possible, the airline said adding Airlines world over are taking steps in this regard, with a few having taken very aggressive actions and the measures taken by it are in line with these steps.

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