Good News For Air India Employees Salaries Raised Across The Board: Air India Ltd will raise employee salaries this year by 2%, the highest in recent years, after it pared losses on the back of cheaper fuel prices, according to two people aware of the matter.
The airline had placed a salary freeze in 2012 to balance its expenses.
“In view of the operating profit of the company for the financial year 2015-16, it has been decided that yearly increment rate for all categories of permanent employees of Air India and its employees posted in subsidiaries will be applicable at 2%,” A. Jayachandran, executive director, finance said in a note to employees on Thursday.
The government-run carrier had earlier announced operating profit of Rs105 crore in 2015-2016, the first time since the merger of erstwhile Air India and Indian Airlines in 2007.
Jayachandran said the increment will be applicable only for the financial year 2016-17 and shall be payable as per the increment date of the respective employees.
Under a committee set up to iron out merger issues in the airline, the mandate was to give a 1% increment on EBITA (earnings before interest, taxes, and amortization) positive and 3% on cash profits, this official said.
Air India is undergoing a Rs30,231 crore equity infusion for a 10-year period from 2012.
Of the total package, the government has already infused over Rs 24,000 crore in the carrier between April 2011 and December last year.
However, Air India’s total borrowings stood at Rs46,570,35 crore as on 30 September 2016.
Against a demand of Rs3,901.49 crore, the carrier was allocated Rs 1,713 crore for the ongoing fiscal, leaving it with a deficit of Rs2,188.49 crore.
Later, as part of the supplementary demands for grants, passed by the Lok Sabha during the winter session, Air India also received an equity investment of Rs861.50 crore.
This fiscal year its cumulative losses stood at over Rs700 crore for the six months ended September 2016.
“Well the amount won’t be very big,” said an Air India employee who declined to be named, “But after the pain employees have suffered financially, finally we have some good signs for the future.”