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Monday, 9 June 2014

Despite losses, Air India milked by its own chiefs

Productivity isn't a word usually associated with forever-in-the-red Air India.
Civil servants on deputation to the top position in the airline have, however, been raking in fat cash incentives and free tickets from the lossmaking behemoth. The Ministry of Civil Aviation appears to have given its blessings in certain cases to institutionalize the mechanism for these officials-all from the elite Indian Administrative Service-to avail of performance-linked incentives (PLI) which are meant essentially for regular employees and that too when it is making a profit.
Free passages-business or first class-have also been a free-for-all zone, with two CMDs of recent times scoring healthy centuries.

P.C. Sen, an IAS officer on deputation as both Chairman and Managing Director of Indian Airlines as well as Chairman of Air India between October 1995 and December 1998, even took the Department of Personnel and Training to court, seeking free passage entitlement after repatriation to his parent service. In its July 2006 order, the Delhi High Court found the petition "devoid of merit" and dismissed it. "At a time when oil prices are spiraling, (and the world faces a grave energy crisis, which has constantly led all societies to rethink and revise tariffs in all modes of transport), the extension of such unlimited and unregulated "air passage" facility even to a section of the people, howsoever eminent they might be, and howsoever loyal their services might have been, in a developing country that can ill afford it, has to be reviewed," the court said.
Read news in full 05/06/14 Sanjay Singh/India Today
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