Car­rier plans labour buy­outs

The Star Early Edition - - INTERNATIONAL -

AIR IN­DIA is draw­ing up a proposal to of­fer vol­un­tary buy­outs to just over a third of its 40 000 em­ploy­ees, a senior com­pany of­fi­cial said, one of the largest such of­fers in In­dia’s state sec­tor, as the air­line slashes costs ahead of next year’s sale. The of­fi­cial, who could not be named as the plans are not pub­lic yet, said the state-owned air­line had also put fleet ex­pan­sion on hold, scrap­ping a proposal to lease eight Boe­ing 787 wide­body air­craft. Air In­dia’s board ap­proved the proposal in April. How­ever, noth­ing fur­ther had been done. In­dia’s flag car­rier is on the block af­ter Prime Min­is­ter Naren­dra Modi’s cabi­net last month ap­proved plans to pri­va­tise the loss-mak­ing air­line by sell­ing part or all of the com­pany and end­ing decades of state sup­port. Founded in the 1930s and known to gen­er­a­tions of In­di­ans for its Ma­hara­jah mas­cot, Air In­dia has a com­plex fleet, there are too many staff rel­a­tive to ri­vals and the air­line is $8.5 bil­lion (R110bn) in debt. Since 2012, the In­dian govern­ment has in­jected roughly $3.6bn to keep the car­rier afloat. – Reuters

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.