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Friday, Oct 17, 2008
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Air India: no retrenchment

M. Rajeev

Plan to offer three to five years’ leave without pay for staff

HYDERABAD: The Union Civil Aviation Ministry and Air India have refuted reports that the State-owned carrier has firmed up plans to retrench about 15,000 employees as a cost-cutting measure.

AI, however, admitted that it has plans to offer three to five year leave without pay to staff on non-operational duties if they “opted for it voluntarily” and an “estimated 15,000” employees could become eligible for the offer.

A day after Jet Airways sacked about 1,900 staffers as part of austerity measures, Air India executive director (corporate communications) Jitendra Bhargava created a flutter in the industry on Thursday morning when he said the airline was preparing to issue leave to those who wanted to opt for it.

As the news spread, causing concern among the staff, Civil Aviation Minister Praful Patel came out with the assurance that there was no question of downsizing staff in Air India.

The news about the AI’s plans for retrenchment was “a misquoted report” and “people should not get carried away by such reports.”

“It is a Government company and we have no plans to retrench staff,” he said.

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