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Thursday, October 16, 2008, 17:00 Hrs  [IST]

Air India mulling over temporary lay-off of 15,000 staff for up to five years

According to Press Trust of India (PTI) report, facing the heat of the financial crisis that has hit the aviation sector, state-owned carrier Air India today said that it is considering to give three-five years leave without pay to about 15,000 staff members. The announcement comes at a time when the country's leading private carrier Jet Airways laid off 1,900 jobs as the financial crunch in the aviation sector is worsening. The 77-year-old state carrier, which initiated a fleet renewal programme three years ago and merged with its sister airline Indian last year, has proposed infusion of Rs 1,000-1,500 crore of equity capital. It is also looking at soft loans of Rs 1,000 crore from the government that can be repaid over a period of time.

“We are planning to offer leave without pay for three to five years. We can consider it for about 15,000 employees,” said Raghu Menon, CMD, Air India. He further informed that those who take up the offer to go on leave will be taken back if they desire so at the same seniority and last drawn pay. An official of Air India said that a proposal for leave without pay could be brought before the company's board soon.


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