Cutting costs,AAI reverts to earlier pay scale for privileges of top brass

The AAIs finances are under acute pressure on twin accounts dwindling aeronautical revenues and massive capital expenditure due to the authority undertaking modernisation of non-metro airports. Given this scenario,the AAI has been actively looking at trimming costs by curtailing unnecessary operational expenses.

Several restrictions have also been placed on domestic and international travel,unless they are deemed absolutely essential and directly related to work. Foreign travel in connection with study tours,workshops,conferences,seminars,presentation of papers,etc,at AAI cost,are stopped forthwith, the circular said. In fact,the executives,entitled to travel by air,have been asked to fly on cheapest airfares. Executive directors have been allowed economy travel on official duties. Further,only small cars are to be engaged for executives on official tours and their hotel accommodation may be a grade lower than entitlement. The instructions,which were issued in June,will remain in force till the authority issues further notice.

The out-of-pocket allowance and incentives for providing extra duties,applicable for air traffic control and communication executives have also been trimmed by 50 per cent. All direct recruitments require a green signal from the AAI chairmans office. Domestic training expenditure has been revised to a maximum ceiling of Rs 5,000 per employee.

The Central public sector unit,concerned about the additional outgo due to implementation of the second pay commission awards,reviewed the increase in salaries. The revised pay scales were estimated to hike salaries by 32 per cent on an average and had to be implemented by June this year. The additional wage bill would have amounted to Rs 14-15 crore per month,or around Rs 180 crore per annum. The wage hike would translate to an almost 46 per cent rise in the total wage bill,which as per the latest data available stood at over Rs 1,000 crore.