Mumbai, Aug 21: In an attempt to cut costs, Air India on Thursday, Aug 20 decided to the slash performance-linked incentives of employees by 30 to 50 percent. And employees union leaders and the workers have reportedly accepted the cut.
The cash-strapped national carrier sought Rs 3,000 crore equity infusion from the government. The government, in response, asked the airliner to cut costs and restructure the organisation if it wants the financial support.
The airline was criticised severely for spending up to Rs 130 crore on incentives even while facing a slump.
Apart from this, the airline has also announced the launch of low-cost services in a bid to cut operational costs.