COVID-19 impact | AAI proposes deferral of salary, revocation of perks to tide over losses

Due to the fall in traffic at various airports, the AAI has incurred losses for the first time since its inception.

June 04, 2021 11:37 am | Updated 11:37 am IST - NEW DELHI

Steeped in losses due to the impact of COVID-19, the Airports Authority of India (AAI) has proposed a slew of measures to its employees, which include deferral of salary and allowances and revoking certain perks besides seeking financial support from the government.

Due to the fall in traffic at various airports, the AAI has incurred losses for the first time since its inception. It registered a 65% decline in its revenue in financial year 2021, which fell from ₹12,837 crore to ₹4,482 crore resulting in a loss of ₹2,814 crore as compared to a profit of ₹1,985 crore.

At a meeting with the employees union and eight other staff associations, the management proposed deferral in the payment of salary. It also suggested delaying payment of allowances comprising 35% of the salary to next year, discontinuing payment for overtime and a review of leave encashment policy.

Staff salaries constitute the biggest chunk of expenditure incurred by the public sector undertaking at 50% of total costs. According to provisional figures, salaries cost AAI a total of ₹4,211 crore.

The AAI is also mulling over cutting down operational and administrative costs, which include stationery and travel expenses, among other things.

In its response to the management, the employees union has submitted its recommendations to deal with the financial crisis which include recovering dues from airlines and airport operators, and suspending capital expenditure on airport infrastructure, including on RCS airports.

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