Business Standard

Air India CMD allays staff concern

- PRESS TRUST OF INDIA

Air India chief Ashwani Lohani on Tuesday assured employees their interests would be "safeguarde­d" as he sought to allay concerns over possible layoff following the government's decision to sell its stake in the national carrier.

“I would like to reassure all my employees that during the process of disinvestm­ent, the government and the airline management would like to safeguard your genuine and valid interests and ensure that suitable measures to this effect are put in place,” Lohani, Air India's chairman and managing director, said in a letter to the staff.

It was the first formal communicat­ion from the debt-laden airline’s top management since the decision for privatisat­ion was taken.

Lohani also wrote that an ownership change will usher in a corporate culture where merit would be better rewarded.

The Air India boss’ missive to its employees came on a day a section of the staff held a protest against its proposed privatisat­ion over fear of large-scale job losses.

An Air India spokespers­on said: "There are media reports that before disinvestm­ent, Air India is drawing up a proposal to offer voluntary buyouts to just over a third of its 40,000 employees.The media reports are baseless and totally false, even factually wrong. Air India and its subsidiari­es have nearly 20,000 employees. Among them Air India has only 11,500 employees. Air India management has not offered their employees for voluntary buyouts."

Lohani said despite the government's decision to privatise the airline, Air India would explore ways to increase its market share and addition of new destinatio­ns to its network would continue “unabated”. The Union Cabinet late last month gave its in-principle approval for disinvestm­ent of Air India. A group of ministers headed by Finance Minister Arun Jaitley will finalise the modalities.

Lohani wrote,"It is the firm conviction of the government that the process of disinvestm­ent is only meant to make Air India a much stronger world class airline capable of competing with others successful­ly.”

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