Dirty_South Posted June 23, 2009 Posted June 23, 2009 New Delhi: National carrier Air India has sought a Rs 10,000-crore bailout from the Union government. Air India’s top management is currently in a closed-door meeting with Civil Aviation Minister Praful Patel in New Delhi. The officials are apprising Patel how much money they would need to get through the crisis to survive the cash crunch. But the airline is unlikely to get the amount, as the Government doesn't want to set a precedent for other sick PSUs to come knocking on its door. Air India is also likely to present the minister its cost cutting plans. It's expected to justify plans to delay the June salaries of its employees by 15 days. The carrier is struggling with daily losses of over Rs 15 crore and its total losses have amounted to Rs 4,000 crore annually. Arvind Jadhav, the company’s CMD, on Saturday wrote a letter to all employees and said the airline is fighting for its “survivalâ€. "This is an hour of crisis. This is a fight for survival. The survival of our own airline,†said Jadhav. Employees of the carrier have called for an indefinite strike from July 1 if the management delays their salaries. The airline has urged its senior management to forego their June salaries. According to the International Air Transport Association (IATA), the global aviation industry is expected to lose about $9 billion this year. The Centre for Asia Pacific Aviation (CAPA) says the Indian aviation industry is likely to incur around $2-billion losses this year. Two major domestic air-carriers, Kingfisher Airlines and Jet Airways have reduced jobs and slashed salaries. Source --------------- wtf ?! 10k cr bailout ? No salaries to employees...who said recession hasn't affected us ? :giggle:
DomainK Posted June 23, 2009 Posted June 23, 2009 Air India is mess of a company. Privatize it. This is the opportunity.
Lurker Posted June 23, 2009 Posted June 23, 2009 Air India is mess of a company. Privatize it. This is the opportunity. All the Private Airline companies are in mess as well. Air India will have to be bailed out, although not sure how much cost Govt is going to agree upon.
Ram Posted June 23, 2009 Posted June 23, 2009 One thing to emerge from all this mess is that our govt. is clearly not adept at running an airlines. More than the recession itself, I think the main cause for this crisis is bad management, outdated cost-structures and antique inventory. Airlines is a tough Industry to be in, it takes real specialists to run it. The govt. is simply not competent enough to be in this Industry. They should privatize the company and exit.
Sachinism Posted June 24, 2009 Posted June 24, 2009 Recession hits Dhoni, faces salary delay New Delhi: Surprisingly, after hitting all the sector including bollywood stars like Salman Khan and Shah Rukh Khan, recession is all set to hit none other than team India’s Captain cool Mahendra Singh Dhoni . Yes, one of the highest income grosser of India, skipper Dhoni’s salary will be delayed by one month as he is employed with Air India. Even though rich cricketers like Dhoni and Yuvraj may not be affected by this the sports persons, present and former, surviving only on salaries this is a big blow. Air India has decided to delay paying salaries to its 31,000 employees by 15 days in July as it struggles with a cash crunch. Air India employs 31,000 people and has an annual wage bill of about Rs 3,000 crore. Its cumulative loss is about Rs 5,300 crore. According to a report in Hindustan times other cricketers like VVS Laxman, Harbhajan Singh, Yuvraj Singh, Suresh Raina, S. Sreesanth and R.P. Singh too would be affected by this and reason that all these India cricketers are among the 200-odd sportspersons employed by Air India. “Frankly, we are still not clear on the status but yes, the salary has been deferred by a fortnight,” said Shekhar Guha, head of Air India Sports Promotion Board. As of now, the loss-making airline has formed a four-member committee comprising members from finance and personnel departments to look into its salary structure. Air India employs 31,000 people and has an annual wage bill of about Rs 3,000 crore. Its cumulative loss is about Rs 5,300 crore.Air India has an annual sports budget of approximately Rs 4 crore and officials said, as of now there are no plans to curtail that. The list of delayed salary also includes India hockey captain Sandeep Singh and Jhulan Goswami who captains the national women’s cricket team. Link: http://www.mynews.in/fullstory.aspx?storyid=20330 LOL The Indian team will have their salaries delayed. Poor them
Ram Posted June 24, 2009 Posted June 24, 2009 Air India needs massive restructuring and cost cutting. They will probably have to sell many of their assets (lands they own), downsize their routes, delay fleet upgradation and probably have to cut their workforce. Before, they were complaining the price of aviation fuel was too high. Now, they say there’s recession. So, when will they ever become profitable?
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