Air India Announces No Layoffs, Slashes Allowances up to 50%


Air India today has announced to not lay off any employees like other airlines in India. The carrier also said that the "flying crew will be paid according to the actual number of hours flown."

The decision came after the Air India board had met the officials of civil aviation ministry."Recent decisions of Air India Board regarding rationalization of staff cost were reviewed in a meeting at @MoCA_goi this evening.The meeting reiterated that unlike other carriers which have laid off large number of their employees, no employee of Air India will be laid off," Air India tweeted today.

The airlines said basic salary and allowances linked to it like industrial dearness allowance (IDA) and house rent allowance (HRA) will remain unchanged.

"There has been no reduction in the Basic pay, DA and HRA of any category of employees. The rationalization of allowances had to be implemented on account of the difficult financial condition of the airline that were exacerbated by coronavirus" the airlines said.

However, Air India has reduced monthly allowances of its employees who have a monthly gross salary of more than?25,000 by up to 50%, according to report inPTI.