No Layoffs, No Reduction In Basic Pay, DA and HRA – Air India

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Indian national carrier Air India on Thursday in a meeting with the Ministry of Civil Aviation (MoCA) decided that the airline will not layoffs any staff and there will be no reduction in Basic Pay, DA and HRA as well, amid the coronavirus-triggered economic crisis.

“Recent decisions of AirIndia Board regarding rationalization of staff cost were reviewed in a meeting at  @MoCA_goi  this evening. The meeting reiterated that unlike other carriers which have laid off a large number of their employees, no employee of AirIndia will be laid off,” Air India said. 

The airline also said that there has been no reduction in pay of any of the employees, however, certain allowances were rationalized.

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“There has been no reduction in the Basic pay, DA, and HRA of any category of employees. The rationalization of allowances had to be implemented on account of the difficult financial condition of the airline that was exacerbated by COVID-19,” Air India said in Twitter Post. 

“Flying crew will be paid as per the actual number of hours flown. As domestic and international operations expand to reach pre-COVID levels and the financial position of Air India improves, the rationalization of allowances will be reviewed,” it added.

The statement comes just a day after the airline formed a committee to identify “surplus or redundant resources” which meant employees who can be sent on compulsory leave without pay (LWP). The committee has to submit the report by August 11, reported the news agency ANI Wednesday.

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“Air India has constituted a committee for ‘identification of redundant/surplus manpower resources’. The Committee to submit its report to the regional director’s office by August 11 for review,” read a letter accessed by ANI.


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Manish Khandelwal
Manish Khandelwal

Manish Khandelwal, a travel-tech enthusiast with over a decade of experience in the travel industry. Founder and Editor-in-Chief of Travelobiz.com, he's passionate about writing.

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