Air India Will Not Fire Even A Single Employee; But Allowances Reduced By 50%

After imposing leave without pay for all employees, and exempting Pilots from this move, Air India has now imposed 50% reduction in allowances for some employees.

However, allowances for house rent won’t be changed. 

Air India has also declared that no employee will be fired.

Air India Reduces Allowances By Upto 50%

All those employees who have a salary of more than Rs 25,000, will now get 50% less allowances.

This cost-saving move has been made to help Air India survive it’s darkest ever phase, as demand among domestic fliers have slumped, and there seems little hope of a revival.

Basic salary of the employees, and the allowances linked with basic salary such as industrial dearness allowance (IDA) and house rent allowance (HRA) won’t be affected.

Rest all allowances will be reduced by 50%.

This way, general category officers will now get 50% less allowances. However, “General category staff” and “operators” will get 30% less allowances; while cabin crew members will get 20% less allowances.

For cabin crew members, the reduction in allowance will be mainly for check allowance, flying allowance and quick return allowance.

At the same time some crucial allowances for the pilots will be reduced: These are flying allowance, special pay, wide body allowance, domestic layover allowance and executive flying allowance.

Upto 40% cut in these allowances for pilots will take place.

Air India Will Not Fire Even A Single Employees

Meanwhile as more and more Air India staff members and employee unions are condemning this move to impose leave without pay and reduction in salary, Air India has declared that not even a single employee will be fired.

Although they have admitted of reducing the allowances, and have termed this step as ‘rationalization’ of allowances.

Recent decisions of AirIndia Board regarding rationalization of staff cost were reviewed in a meeting at @MoCA_goi this evening.The meeting reiterated that unlike other carriers which have laid off large number of their employees,no employee of AirIndia will be laid off. (1/3)

— Air India (@airindiain) July 23, 2020

In the tweet, Air India has said that some employees will get reduced allowances.

We will keep you updated, as more details come in.