Having turned operationally profitable in the last financial year, after about five years, Air India will now give a 2 per cent salary hike.
Following a few difficult years of dying profits and mounting losses, the national air carrier, Air India, has reportedly decided to provide a salary hike to its permanent staff. With things looking better, after about five years of poor revenue, Air India has now decided to give a two per cent salary hike to its permanent employees.
Aided by lower fuel costs and rise in passenger numbers, Air India posted an operational profit of Rs 105 crore in the last financial year. It was also the first time in a decade that the carrier turned operationally profitable.
In a communication to employees, Air India’s executive director, A Jayachandran, recently shared that in view of the last fiscal’s operating profit, the company has decided that the yearly increment rate—for all categories of permanent employees of Air India and its employees posted in subsidiaries—will be applicable at two per cent.
The same would be applicable only for the financial year 2016–17, effective from 1 April, 2016 to 31 March, 2017, and shall be payable as per the increment date of the respective employees.
The airline has around 19,000 permanent employees. Air India, which is staying afloat on a Rs 30,000 crore bailout extended by the government, is working on ways to improve its financial position.