Air India has announced a slew of cost-cutting measures aimed at the crew and officials including a cut in entertainment allowance for executive pilots, a reduction in layover or subsistence allowance and a 10% paring down in fuel reimbursement for all officers of the national carrier.
In a communication to regional executive directors and regional general managers (finance), Air India’s executive director (finance) S. K. Singh explained that steps to contain costs had become necessary in light of the position of the company and in the wake of the recent global developments that had forced several airlines worldwide to adopt very aggressive measures.
Air India would, with immediate effect, withdraw the executive entertainment allowance — of $50 per flight — to executive pilots. For cabin crew, the layover or subsistence allowance for both permanent and contractual crew rostered from April 1 would be revised to $100 for 30 hours — down from $75 a day or $150 for anything beyond 24 but under 48 hours — and thereafter $4 for every additional hour in excess of 30 hours. For ultra long range flights, $140 (down from $150) would be paid for the first 30 hours and $6 for every additional hour in excess of 30 hours.
The national carrier, whose deadline for completion of sale was extended by more than a month and a half on March 13, also announced a cut in fuel reimbursement limits for all officers. The reimbursement would be pared by 10% from April 1, initially for a period of six months.
Air India’s unions meanwhile criticised the move and said ‘this was the reward for the Wuhan evacuation’ that its crew had undertaken.
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