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Centre unhappy with Air India pilots strike: Praful Patel | Appealing to the striking Air India pilots to end their four-day-old strike, Union Minister of State for Civil Aviation (Independent charge) Praful Patel on Tuesday warned that if they did not end their agitation quickly, the government and the national
carrier would be forced to take emergency measures that could be detrimental to
their short and long-term career interests. Expressing the Centre's unhappiness
and concern about the strike that has inconvenienced passengers travelling within
the country and abroad, Patel said the government is doing everything in its power
to get the national carrier out of the red, and therefore, it was the duty of
the pilots to see reason and join in the effort to restore what he called the
pride of the nation. "The current situation is a matter of concern and the Government
of India , as the owner of the airline, is not very happy over the strike. The
Government of India has been very considerate and there has been a constant endeavour
to help the airline come out of its current financial problems," said Patel. The
minister further said that salaries had been paid to airline staff upto July 2009
and that three months ago, a committee had been formed to look into the problems
being experienced by the airline and to come up with solutions. "We believe that
the Government of India should support the airline by facilitating the infusion
of equity in a phased manner. These measures along with cost reduction measures
will facilitate the airline's recovery. While doing this, we appeal to the employees
(of the airline) to join in the effort to turn the airline around. All employees
must cooperate in turning the airline around. At this time, Air India cannot absorb
high cost structures or expenses. I must also state that no decision has been
taken on issues such as PLI by the airline management. The airline management
has been told to deal with the issues of the pilots and other staff in a sensitive
manner," said Patel Patel's comments came as Air India failed to reach an agreement
with striking pilots over cuts in incentives, forcing the airline to consider
suspending operations for a fortnight. It stopped taking bookings and was faced
with the prospect of international flight cancellations to add to the 30 domestic
ones that it couldn't operate on Monday. Air India, seeking to stem losses as
part of conditions attached to a government rescue, is run by the National Aviation
Co. of India Ltd (NACIL). At the time of going to press, there was no official
statement from the carrier on the proposal for suspending operations. The airline
said in a press release late on Monday. "Air India management is deliberating
various options in the wake of more pilots reporting sick affecting its operations."
On Tuesday, the Prime Minister Office (PMO) took stock of the ongoing stalemate
and directed the Ministry of Civil Aviation and Air India to find an early resolution.
The PMO also told the Civil Aviation Ministry that a lockout is not an option
to resolve the issue. Civil Aviation Secretary M Nambiar briefed top PMO officials
here at a meeting, which was also attended by Cabinet Secretary K M Chandrashekhar.
"The Air India management has not taken any decision on the cut of Productivity-Linked
Incentives (PLI) or any allowance for the unionized section of employees. Decision
regarding the executive employees will be taken only after the committee setup
to look into this matter has examined all aspects in consultation with employees,"
Nambiar said in his statement. "The disruption of the flights is causing immense
problem to the traveling public and bringing disrepute to the airline. In these
circumstances, the pilots and all employees must cooperate with the management
for the turnaround of the airline," he added. Nambiar further said that though
the Government support is coming, it must be linked to a problem turnaround plan,
including cost cutting and revenue enhancement. "We will advise the management
to enter into a comprehensive dialogue with all sections of employees. This strike
must end immediately in the interest of the public and this will also stand the
airline in good state for future Government support," he later added. The pilots
began their strike on Saturday, weakening the turnaround plan of the ailing carrier.
With accumulated losses of Rs7,200 crore and borrowings of up to Rs.15,241 crore
at the end of June, up from Rs.6,550 crore in November 2007, Air India has asked
the government for a loan and equity infusion of around Rs.15,000 crore. Earlier
this month, hundreds of pilots at India's largest private carrier by passengers,
Jet Airways (India) Ltd went on mass sick leave for six days to protest against
the firing of two pilots instrumental in forming a pilots' union. Subsequently,
two more pilots were sacked. Jet Airways founder chairman Naresh Goyal reinstated
all the sacked pilots after first threatening to close the airline. "The suspension
of operations is the only way out for Air India. It can close down and recruit
employees on new service conditions and terms. As long as there is no solution
to cut cost and increase yields, the cut in PLIs will not do the magic of turnaround,"
said an aviation expert. "The management is open to discussion on the composition
of the committee of executive pilots referred to in the office order dated 27
September 2009. Orders have been issued that PLI and flying allowance of July
2009 payable in August 2009 be disbursed immediately," Air India said in a statement
on Monday. In other words, the PLI will not be deducted till a fresh circular
is issued. "The schedule for payment of salary and PLI for the coming months will
be finalized in consultation with the financial institutions and communicated
to all employees shortly," it said. The Air India board had on September 24 decided
to cut incentive payments for officers and top managers by as much as half in
a cost-cutting measure covering 7,000 employees out of its total strength of 31,500.
The officers include executive pilots, executive cabin crew and executive engineers.
The carrier has not taken a decision on the remaining employees. Air India said
separately on Monday that it was proposing to save up to Rs.1,300 crore in the
remaining six months of the current fiscal, while a Rs.400 crore saving would
come by rationalizing manpower costs as a part of operational restructuring. Meanwhile,
Jet Airways pilots held a meeting with the striking Air India pilots in Mumbai.
The Jet Pilots Union has expressed solidarity with Air India pilots. Jet Pilots
Union President Girish Kaushik said that all pilots should form a federation to
protect their interests. All pilots across airlines need to come together and
resolve the crisis together, Kaushik added. |
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