Air India has cut the PLI (Productivity Linked Incentives) for Air India Executive Pilots

Air India seems to have a frustrating time in this fiscal year 2009. As we all know that he airline is already dropping down because of the very low passengers filling up the seats for them. The National Aviation Company Ltd, or Nacil, which runs state-owned Air India is in turnmoil over pilots strike. There is a section in Air India called the Executive Pilots, There was a sudden change in the management saying that there would be stopping the (PLI) they are nothing but Productivity Linked Incentive. After cutting productivity-linked incentives (PLI) of more than 7,000 officers, Air India (AI) is now planning to cut such incentives of the remaining 23,000 mid- and lower-level unionised employees, as higher costs and unviable routes take a toll on the national carrier. According to people familiar with the development, AI has had informal negotiations with the unions. Unions have already warned AI not to cut PLI of its mid-level employees.
AI has a cost structure in which salaries and wages constituting 35% of the total operating costs. AI is targeting a reduction in employee cost of around Rs 500-800 crore. Its current annual employee cost is nearly Rs 3,000 crore.

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~ by anand213 on September 28, 2009.

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