• search
For Quick Alerts
For Daily Alerts

COVID-19: Air India resorts to cost cutting, says insurmountable dip in revenues


New Delhi, Mar 21: Air India informed its employees on Friday that it is taking various cost-cutting measures, including decreasing allowances for all employees, except cabin crew, by 10 per cent for three months as there is an "insurmountable dip" in the revenues due to the coronavirus outbreak.

These measures have been announced days after GoAir announced layoff of expat pilots and IndiGo declared pay cut for its senior employees due to "precipitous" fall in revenues amid the pandemic.

COVID-19: Air India resorts to cost cutting, says insurmountable dip in revenues

"In the wake of recent global developments and the serious impact of COVID-19 pandemic...There is an insurmountable dip in the revenue which calls for stringent measures to reduced our costs," said an Air India office order to all its employees. PTI has accessed the order.

As per the order, the airline would undertake negotiations to review all agreements with lessors and hotels to reduce their rates.

Air India cancels flights to Italy, France, Germany, Spain, 3 other counties

"Special drive to be undertaken to recover all pending dues from government departments in a time-bound manner. An aggressive action is required by the concerned offices in the region as well at the headquarters," it added.

"It was agreed to implement 10 per cent deduction in allowances (excluding basic pay, house rent allowance and variable dearness allowance) in respect of all employees, except cabin crew, for a period of three months effective March 2020 salary," it noted.

For Daily Alerts
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more