Aviation ministry moves Cabinet to bring down retirement age in HCI

In a bid to turn around the loss-making Hotel Corporation of India (HCI),a wholly-owned subsidiary of Air India Ltd,the civil aviation ministry

In a bid to turn around the loss-making Hotel Corporation of India (HCI),a wholly-owned subsidiary of Air India Ltd,the civil aviation ministry has moved a proposal to the Cabinet to bring down the retirement age of the companys employees to 58 years from 60 currently.

We have circulated a Cabinet note on the issue and it will be taken up by the Union Cabinet soon. This reduction in retirement age for HCI employees will bring it in line with Air India employees,where it is 58, said a senior ministry official.

This decision will impact the tenure of service of about 1,400 employees of HCI. Around 350 employees of the company will retire as soon as the proposal is cleared by the Cabinet.

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The official further explained that the reduction in retirement age would lead to a savings of Rs 20 crore but they will have to pay Rs 12 crore as retirement benefits to the employees that are slated to retire.

HCI was formed in 1971,after the national carrier decided to enter the hotel Industry. Currently,HCI operates two hotels one each in Delhi and Srinagar under the brand name Centaur and two flight kitchens in Delhi and Mumbai under the brand name Chefair.

HCI is a loss-making subsidiary and the government is trying to turn it around. In a move towards its revival,the government has infused Rs 10 crore for the maintenance of its properties in Delhi and Srinagar.

Both the properties in Delhi and Srinagar are in real dilapidated condition and the roof is leaking at several places. With repair,we think these hotels can see some increase in their revenues, said a ministry official.

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The official added that there are plans to give the management contract of these hotels to private parties.

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Aviation ministry

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