Air-India unions oppose foreign equity

MUMBAI, OCT 17: The Joint Action Committee JAC has served an ultimatum to the government of India on the proposed disinvestment saying t...

MUMBAI, OCT 17: The Joint Action Committee JAC has served an ultimatum to the government of India on the proposed disinvestment saying that foreign airlines should be banned from getting a 26 per cent equity in the airline. It also said there should not be any lay offs or retrenchments by the new management.

8220;It is our genuine fear and concern that equity participation by a foreign airline will only pave the way for the growth of that airline at the expense of Air-India,8221; a top Union official said.

Blaming the government for the present mess in the airline, Unions have said new management should not any action which are detrimental to their welfare. 8220;The new management should no taken any steps which affect the status of present or retired employees,8221; the Unions have said.

Addressing a news conference here today, a JAC official said the shareholding of the strategic partner should be sold back only to the government if it decides to offload the same in future. Besides, the government should consult with the JAC on the disinvestment of the remaining 40 per cent of government8217;s equity, they said.

The seven unions in the JAC include the Indian Pilots Guild, Employees8217; Guild, Officers8217; Association, Engineers8217; Association, Cabin Crew Association, Flight Engineers8217; Association and Aircraft Engineers8217; Association.

Frequent changes at the top as well as the appointment of board members, ad hocism on the part of government on various policy matters leading to additional cost on the airline and decision on purchase of new aircraft aircraft kept in hold since 1993 as some of the reasons cited by the Unions for AI8217;s downfall, they said.

The JAC has drawn out a common strategy to deal with the process of disinvestment with the government, management and the global advisor. 8220;The government should ensure that the proceeds of the disinvestments should be used to revive the airline and the starategic partner should ensure fleet expansion, it said.

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The Unions also want the new partner to recognise and protect the Air-India logo and mascot as well as the status of national flag carrier.