Jun 8, 1999|
Indian Airlines plans golden handshake to trim workforce
A voluntary retirement scheme is on the cards at Indian Airlines (IA) reports the Economic Times. The current strength of the staff id approximately 21,990 across 56 aircraft.
The proposed VRS which is being vetted by department heads at IA headquarters and regional heads, is expected to be put up before the IA board in about 8-10 weeks. The airline management is taking a cautious line on the number of personnel that is likely to avail of the VRS and expects 300-400 employees to opt for it. At present the airline has an employee to aircraft ratio of 400:1, which by itself is on the higher side, but yet, much lower than Air India's ratio of 800:1.
According to the draft VRS, employees will be paid a lumpsum payment of one-and-a-half times their monthly salary for each year served or one-and-a-half times their monthly salary, according to the number of years left before retirement, whichever is less. Under the scheme, IA employees would continue to enjoy the airline's medical and passage benefits as well as its holiday homes, only provided they do not join a competing airline.
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407