Govt clarifies on PF benefits to Air India employees after privatisation

New Delhi, Dec 20: The government will continue to provide gratuity and PF benefits to the existing employees of Air India and Indian Airlines, the Ministry of Civil Aviation informed the Rajya Sabha on Monday.

"Interests of the employees have been taken care of by the Government and incorporated in the Share Purchase Agreement signed with the Strategic Partner on 25.10.2021," said the Minister of State in the Ministry Of Civil Aviation (Gen. (Dr) V.K.Singh Retd) in a written reply to a question in Rajya Sabha today.

"In accordance with the applicable laws, the Strategic Partner, post disinvestment, shall continue to provide Gratuity and PF benefits to the employees. The arrangement with the employees and Life Insurance Corporation of India for administrating the existing Air India and Indian Airlines employees Self Contributory Superannuation Pension Fund Trust will continue," he said.

Further, with regard to the medical benefits, they are to be made available to the retired and eligible retiring AI beneficiaries by the Government.

In October this year, the government announced that Salt-to-software conglomerate Tatas have won the bid to acquire debt-laden state-run Air India offering Rs 18,000 crore for acquiring 100 per cent shareholding.

Jehangir Ratanji Dadabhoy (JRD) Tata founded the airline in 1932. It was called Tata Airlines then. In 1946, the aviation division of Tata Sons was listed as Air India and in 1948, Air India International was launched with flights to Europe.

The international service was among the first public-private partnerships in India, with the government holding 49 per cent, the Tatas keeping 25 per cent and the public owning the rest.

In 1953, Air India was nationalised.