Public RelationsAI board meets tomorrow; may scrap PLI to mgmt
A crucial meeting of the Air India (AI) board tomorrow is likely to take decisions on several cost-cutting measures such as a proposal to scrap the productivity-linked incentives (PLI) to its management cadre, and adopt the financial accounts for 2008-09.
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"The main agenda is adoption of accounts for the previous financial year," sources close to the development said. The meeting, to be held in Chennai, is also likely to discuss route and capacity rationalisation as part of the cost-cutting proposals.
The meeting comes days ahead of a meeting of the Group of Ministers (GoM) on the national carrier"s financial health and in the backdrop of a strike threat by the non-executive pilots owing allegiance to the Indian Commercial Pilots Association (ICPA).
The board is likely to discuss a proposal on the scrapping of PLI of the company"s top management -- functional directors and executive directors, they said.
The National Aviation Company of India (NACIL), the parent company of Air India, at present has six functional directors and over 40 executive directors.
The company pays around Rs 1,500 crore annually as PLI to its over 30,000 workforce.
Recently, the management had proposed to reduce the PLI of its executive-level officials, including pilots and engineers by up to 50 per cent, which was opposed by employees.