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No job, pay cuts after Indian, AI merger: Patel

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  • Following directions from the Group of Ministers (GoM) examining the proposal to merge state-owned carriers Air India and Indian (Airlines), Civil Aviation Minister Praful Patel today met the employee unions of both the carriers in a bid to assuage apprehensions over the move.

    Explaining the benefits the merger would lead to, Patel assured employees of their future prospects and said that an independent redressal mechanism having representatives from the ministry, both the airlines, Department of Personnel and Department of Public Enterprises would be set up to ensure that the employees grievances are addressed expeditiously in a fair and credible manner.

    Patel also assured the unions that the selection and appointment of personnel for various responsibilities in the merged entity would be done through a credible and transparent process based on fair and objective criteria. Reiterating that the merger would not lead to any retrenchment, cuts or losses in pay scale, perks or allowances, Patel said that adjustment of the employees into the new entity would be done in a manner that ensure improved service conditions.

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    According to the Civil Aviation Ministry, the merged airline would be in a better position to serve and promote airport hubs being developed at metro cities by providing seamless domestic and international air connectivity. According to ministry estimates, the combined airliner is expected to benefit to the tune of Rs 820 crores from increased cost savings and profitability at the end of the third year of merger.

    The merger would...

    Enable an integrated footprint which will significantly enhance customer propositions and allow easy entry into one of the three global alliances

    ... contd.

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