Seeking a turnaround in its fortunes, Air India is looking to augment revenues rather than trim staff expenses even as it battles tough market conditions and financial woes.
The national carrier, which is surviving on a staggered Rs 30,000 crore bailout package, has around 19,000 employees, including over 1,500 pilots and about 6,000 people on contract.A senior official said the airline is looking at various options to increase revenues and that there are no plans to cut down costs related to staff."Air India's staff is around 12 per cent of the total expenses...It might be an easy way to slash expenditure by withdrawing or doing away with certain perks given to employees but that will not help in the long-term," he noted.The Government-owned airline's annual wage bill stood at Rs 3,100 crore in the 2014-15 fiscal as against Rs 3,600 crore in FY 2011-12 by abolishing productivity-linked incentives as per the Department of Public Enterprises (DPE) guidelines.
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