Air India wants to reduce dependence on govt, says CMD

Air India is planning to cut the operational cost to reduce the dependence on government support for equity. Aviation Minister Hardeep Singh Puri said that if Air India wants government dependence, the government may not be in the position due to the current situation.

New Delhi: Air India Chairman and Managing Director Rajiv Bansal on Thursday said that the airline is aiming to cut operational cost and thereby reducing the dependence on government support for equity.

"We are trying to steadily increase our top line to increase our revenues, at the same time we are also trying to contain our cost, said Air India CMD in a press conference.

Rajiv Bansal said, "We want to reduce the dependence on government support for equity and trying to contain the costs by reducing debt, lease rentals, staff expenses and operating costs."

He added that Air India has laid off employees whose stints are extended after retirement and now we are in talks with pilots, cabin crews and other employees categories.

While Aviation Minister Hardeep Singh Puri further reiterated that all airlines are reducing to cost-cutting measures. If not taken, Air India will not survive.

"Even if Air India wants government dependence, the government may not be in the position due to the current situation. Covid-19 crisis has added one more reason for the disinvestment and there are no options left before the government as it cannot continue to infuse Rs 500 to 600 crore equity into the national carrier every year," said Puri.

We don't have a choice we will have to be persistent with privatization effort, the Minister further added.

Meanwhile, Air India pilot unions have on Thursday written a letter to Air India CMD and said that they would like to meet Aviation Minister and return all appreciation letters received during Covid-19 duty.

"The proposed cut for pilots is almost 60% of gross emoluments. It is hilarious to note that the top management has proposed a meagre 3.5% cut on its own gross salary," the letter read.

"We have not been paid 70% of our pay since the month of April 2020. To discuss a retrospective pay cut on the work done is unfair and humiliating to an employee who has been loyal to the company and the nation," the letter further stated.

Notably, the national carrier Air India's net loss in 2018-19 is provisionally estimated to be
Rs 8,556.35 crore.

The government had in January invited preliminary bids to divest its entire stake in Air India and the airline's subsidiary Air India Express along with its joint venture Air India SATS Airports Services Private Limited.

But, due to the coronavirus pandemic, the government had on June 27 extended the deadline to submit bid documents for Air India by two months to 31 August.