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New Delhi, Jul 18: National carrier Air India on Friday said that it is in a ‘very challenging financial’ situation and is taking recourse to several initiatives, with a view to ensuring the continuance of its operations.

The airline, in a statement, noted that it has introduced the partially voluntary 'Leave Without Pay' (LWP) scheme on July 14.

"The scheme primarily enables employees to avail the benefits of proceeding on leave without pay on a voluntary basis. The LWP scheme has been introduced for grant of leave without pay and allowances for permanent employees for a period of six months or two years, which is extendable upto 5 years," the statement said.

"Air India had brought out similar scheme earlier... Several hundred employees have, in the past, availed of the LWP Scheme."

As per the statement, in the wake of the ongoing Covid-19 pandemic, there may be employees who are unable to attend their office duties in person on account of personal reasons.

"The LWP scheme enables employees to take a break from their office responsibility for a defined period of time with the approval of the management, while retaining their employment with the company," the statement said.

"They will continue to avail facilities such as passage, medical and housing at specified rates."

Accordingly, the LWP scheme provides the opportunity to employees to take up alternative employment with the approval of the management during the period of the said leave, the airline said.

"The LWP scheme is a win-win situation for both the management as well as employees as it provides flexibility to employees and simultaneously reduces the wage bill for the company," the statement said.

"It is important to note here that the Covid-19 outbreak has very seriously impacted the airline sector and currently, the airline operations of the company are a small fraction of the prior Covid level operations."

The airline said that employees are encouraged to apply for availing the benefit of the scheme, in the prescribed format, by August 15.

"The only addition in this scheme as compared to the earlier LWP scheme is that the management can pass an order requiring the employees to go on leave for a period of six months or two years (extendable upto 5 years) compulsorily taking into consideration 'Suitability, Efficiency, Competence, Quality of performance, Health, Non-availability of employee and Redundancy'," the statement said.

Furthermore, the airline said that this provision has been introduced for use, "very sparingly", with a view to ensuring that the overall efficiency of the organisation, improves and the management will ensure that this will be implemented with complete fairness and transparency as per prescribed procedure.

Consequent to the announcement of the scheme, Air India unions are discussing their strategy against the move which might involve legal recourse.

An Air India union leader on Friday told IANS: "This is going to affect the livelihood of many. Why not every employee of AI take LWP a few days every month. This way the burden can be shared."

"The motive of the top management is to save their money by snatching money from lower employees."

According to Air India PIM document, as on November 1, 2019, the airline, on a standalone basis (without subsidiaries), had around 14,000 employees, including fixed term contract staff.

The development comes as the Centre has re-initiated the airline's divestment plan with new norms.

Interestingly, this time, it has sweetened the deal by substantially reducing the debt on the airline's account books and offered a 100 per cent stake in the loss-making airline.

The last date for bid submission to acquire Air India has also been extended to August 31.

New Delhi, Mar 19: Hit hard by coronavirus, budget carrier IndiGo today announced that it will cut salaries of senior employees. IndiGo CEO Ronojoy Dutta, who will himself take a 25% cut in salary, said senior vice presidents and above are taking a 20% pay cut while vice presidents and cockpit crew are taking a 15% pay cut.

With precipitous drop in revenues, the very survival of airline industry is now at stake, Dutta said while announcing the pay cut. "We have to pay careful attention to our cash flow so that we do not run out of cash," Dutta said adding that he knew how hard it was for families to take a cut in "take-home pay".

"With a great deal of reluctance and a deep sense of regret, we are therefore instituting pay cuts for all employees, excluding Bands A and B, starting April 1, 2020," the chief executive officer said. Band A and B are the lowest brackets in salary class, where most of the employees are.

IndiGo's flight operations chief Ashim Mitra had written an email to pilots this morning saying that the economic environment has deteriorated significantly and no airline is insulated from this severe downturn.

"It has become a necessity to initiate some tough calls and we are working on a string of measures that will be shared and implemented over the next few days and weeks," Mitra said.

With countries sealing their borders partially or fully across the world due to the novel coronavirus pandemic, aviation sector has been hit extremely hard as most airlines globally have drastically curtailed their flight operations.

Another budget airline GoAir has already terminated contracts of expat pilots amid curtailed operations due to the coronavirus pandemic.

Citing "unprecedented" decline in air travel, the budget carrier announced it was suspending international operations and offering leave without pay programme to its staff on a rotational basis.

Government-owned Air India may also cut salary of employees by 5% amid its growing financial woes particularly in the wake of the coronavirus pandemic, which has nearly grounded its entire international operations. The reduction will be across the board, according to a PTI report.

The loss-making airline, which is in the process of a second attempt of privatization after failing to get a single buyer nearly two years ago, has already taken some steps such as reduced flying allowances to cabin crew besides withdrawing entertainment allowance to executive pilots, among others.

“Air India is considering a 5 per cent pay cut to its employees as it faces huge financial crisis due to the ongoing coronavirus outbreak, which has brought almost its entire international operations save the US, Canada and a few other markets, to the ground," a source told news agency.

Mumbai, Apr 14: Hours after Prime Minister Narendra Modi announed extension of the coronavirus-enforced lockdown till May 3, a large number of migrant workers who earn daily wages came out on road in Mumbai on Tuesday demanding transport arrangements to go back to their native places.

Bandra in Mumbai right now. Police probing what caused such a large crowd to gather. pic.twitter.com/04H1Mnggd2

— Padmaja joshi (@PadmajaJoshi) April 14, 2020

Daily wage workers have been rendered jobless ever since the lockdown was announced late last month to stem the spread of COVID-19, making their life a constant struggle.

Though authorities and NGOs have made arrangemnets for their food, most of them want to go back to their native places to escape the hardship brought by the sweeping curbs.

Wow. Thousands of ambassadors of peace doing this at #Bandra right now. Well done @OfficeofUT, well done. The world should see this.#Covid_19 #COVIDIOTSpic.twitter.com/SdinaZXm39

— Abhijit Majumder (@abhijitmajumder) April 14, 2020

According to a police official, daily wage earners, numbering around 1,000, assembled at suburban Bandra (West) bus depot near the railway station and squatted on road at around 3 pm.

The daily wage earners, who reside on rent in slums in in the nearby Patel Nagri locality, were demanding arrangement of transport facilities so that they can go back to their native towns and villages.

They originally hail from states like West Bengal and Uttar Pradesh.

Thousands of migrants gather at Mumbai's #Bandra railway station and protested. All are migrant workers, specially from Bihar-Bangal and they wanted to go home. They had hoped trains will start today. The police is investigating the matter and says crowd has been dispersed now. pic.twitter.com/NMHfv0CEpj

— Shivangi Thakur (@thakur_shivangi) April 14, 2020

One of the labourers, who did not reveal his name, said, NGOs and local residents are providing food to migrant workers, but they want to go back to their native states during the lockdown which has badly affected their source of livelihood.

"Now, we dont want food, we want to go back to our native place, we are not happy with the announcement (extending the lockdown)," he said, looking dejected.

Asadullah Sheikh, who hails from from Malda in West Bengal, said, We have already spent our savings during the first phase of the lockdown. We have nothing to eat now, we just want to go back at our native place, the government should made arrangements for us.

This happened in bandra just minutes back ! This can be potentially dangerous. Mumbai anyways is a hotspot ! What is the @MumbaiPolice and @OfficeofUT doing ???? Did @uddhavthackeray not provide food and shelter to such migrants ? #mumbai #UddhavThackeray #Lockdown2 pic.twitter.com/AeSuqbwhyN

— Megha Prasad (@MeghaSPrasad) April 14, 2020

Another labourer, Abdul Kayyun, said I am in Mumbai for last many years but have never seen such a situation. The government should start trains to shift us from here to our native place."

Heavy police deployment was made at the protest site to tackle any untoward incident.

Personnel from other police stations were called at the spot to maintain order, the official addd.