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In wake of the statement issued by government that airlines should adopt stringent measure for reducing the expenses and improving the revenues, government-run air carrier, Air India, has decided to announce a 50% reduction in its incentive package.
"The board may make an announcement of a 50% cut in the productivity-linked incentives (PLI) for the executive staff (senior manager upwards, officials who are not unionised),'' said an Air India official.
The board had put forward the proposal for cutting down the PLI and flying allowance for the crew by 50%. But the unions had raised protest against the same.
The air carrier had been attempting to cut down the salary. It had even requested for infusion of equity as well as soft loans from the government, which was rejected. Pranab Mukherjee had stressed that a bailout package would not be provided to the air carrier unless it adopts measures for decreasing the expenses and improving the revenues.
While some unions have agreed to the cuts, others are against it. On Tuesday, members of the pilots' and engineers' trade union of former Indian Airlines had showcased their protest against incentive cuts and delay in the salary payments.
