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This is an archive article published on September 29, 2009

AI crisis: Aviation ministry rules out shutdown

The Civil Aviation Ministry on late Monday night ruled out a shutdown and the airline said there will not be a situation requiring a 'lock-out'.

After speculation that Air India may suspend operations over the stalemate with the striking pilots,the Civil Aviation Ministry late Monday night ruled out a shutdown and the airline said there will not be a situation requiring a “lock-out”.

The Ministry also appealed to the executive pilots to immediately end their strike which entered the third-day on Monday disrupting another 40 flights. The pilots of the cash-strapped airline are protesting against the cut in the Productivity Linked Incentives (PLI).

Air India CMD Arvind Jadhav said,”We are not contemplating any type of action that we lead ourselves to a situation which will require to discipline anybody on hand or a lock-out.”

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In significant comments,the ministry said the “government support” is coming but will be linked to a proper turn-around plan including cost-cutting in revenue enhancement.

Striking a conciliatory note,Civil Aviation Secretary M Madhavan Nambiar said the AI management has not taken any decision on the cut of the PLI or any allowance of the unionised section of the employees.

A decision regarding the executive employees will be taken only after the committee set up to look into this matter has examined all aspects in consultation with the employees,he said. There were reports that Civil Aviation Minister Praful Patel spoke to Prime Minister Manmohan Singh on the AI crisis which has led to disruption of flights.

“We will advise the management to enter into a comprehensive dialogue with all section of employees,” Nambiar said.

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Earlier,sources in the airline in Delhi and Mumbai said Air India was mulling suspending its operations for about 15 days from midnight tonight after fresh talks with the striking Executive pilots failed to break the three-day deadlock over cut in PLI.

Refuting reports in a section of the media that a lock-out has been declared in the company,a late night statement from Air India said it was “false” and “totally baseless”.

“Air India is a scheduled operator operating under the laws of the country and any action to declare a lock-out would need abidance by the regulations of the appropriate authority.

Furthermore,Air India is a company owned by the Government of India and therefore an approval of the government would also be necessary before taking such a serious action”,it said.

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“Till this point in time,the company has not even approached the Government with any such intentions and therefore,the question of declaring a lock-out at this point does not arise”,it said.

The airlines is gearing up all possible resources to ensure that passengers of disrupted flights are accommodated in alternative arrangements or refunded their fares,if they so desire,it said.

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