AI to pay August salaries on time

Air India managements earlier exhortation that employees need to view the current crisis facing the airlines,including Air India,wherein drop in number of passengers travelling by air,low fares and low yields have resulted in operational costs being higher than income,has created the need for airlines to reduce their cost platforms. Manpower,incidentally,is the second largest component of airlines expenditure after ATF aviation turbine fuel, said an Air India spokesperson.

The carriers management has proposed to merge PLI with the basic pay of various sections of employees and match them with the scales and allowances recommended by the Sixth Pay Commission and in accordance with the Department of Public Enterprises guidelines.

The PLI cut would be in effect for three months till an alternative formula for governing the incentive was worked out,the spokesperson said. The formula governing incentives is to be linked to the companys performance.